What does a financial advisor for small business owners do?

A financial advisor for small business owners can help connect business decisions with the owner’s personal financial plan. Depending on the engagement, that may include cash flow planning, tax planning coordination, retirement planning, investing outside the business, risk management, and preparing financially for a future business sale or transition.

How is a business owner financial planner different from a traditional financial advisor?

A business owner financial planner looks beyond an investment portfolio and considers how the business affects the owner’s overall financial life. Business income, owner compensation, taxes, reinvestment decisions, retirement benefits, business value, and personal investments may all need to work together rather than being planned separately.

When should a business owner consider hiring a financial advisor?

A business owner may consider hiring an advisor when financial decisions become more complex or begin overlapping. Common examples include increasing profits, unpredictable cash flow, significant tax liabilities, hiring employees, choosing a retirement plan, building wealth outside the company, buying out a partner, or preparing for an eventual exit.

How can business owners build wealth outside of their business?

Business owners can potentially build wealth outside their companies through cash reserves, retirement accounts, taxable investment accounts, real estate, and other investments. The appropriate strategy depends on the owner’s goals, cash flow needs, risk tolerance, and the potential return from continuing to reinvest money back into the business.

What should I look for when choosing a financial advisor for my business?

Look for an advisor who understands both business and personal financial planning and can clearly explain how they are compensated. Consider asking whether they are a fiduciary, how often they work with business owners, whether they coordinate with CPAs and attorneys, and whether their services include areas such as tax planning, business cash flow, retirement planning, investing, and exit planning.

How Do I Know If My Bookkeeper Is Doing a Good Job?

Kendall Maccagnan

1 day ago

4 min read

By Kendall Maccagnan, CPA, CFP® and Financial Advisor in Tampa, Florida

A good bookkeeper delivers accurate financial statements on time every month, reconciles bank and credit card accounts, and can explain what your numbers mean. Warning signs include books that are months behind, a growing pile of uncategorized transactions, and balances that don't match your bank statements.

Most business owners don't know how to check their bookkeeper's work, so they don't. The problem is that many decisions you make, from how much to pay yourself to whether you can afford a new hire, depends on those numbers being right. You don't need to be an accountant to spot problems. You just need to know where to look.

Key Takeaways

Your bookkeeper should generally reconcile every account and deliver financial statements by a consistent date each month.
Uncategorized transactions, growing clearing accounts, and balances that don't match your bank are common signs of trouble.
Your balance sheet is often where bookkeeping errors show up first.
Clean books matter most before tax season, before applying for a loan, and before selling your business.

What Should a Good Bookkeeper Do Every Month?

A bookkeeper's job is to record your business's transactions accurately and on time. Each month, they should generally be doing the following:

Categorizing every transaction
Reconciling each bank, credit card, and loan account
Recording payroll and tracking what you owe in payroll taxes
Tracking unpaid customer invoices and bills you owe
Delivering a profit and loss statement and balance sheet
Flagging anything unusual, like a large unexpected expense or a missing deposit

If you're not receiving monthly financial statements, I would recommend that's the first thing to fix.

A 10-Point Checklist to Review Your Bookkeeper's Work

You can run through this checklist in about 30 minutes using the reports in QuickBooks, Xero, or whatever software your bookkeeper uses.

What to check	What good looks like
1. Bank and credit card reconciliations	Every account is reconciled through last month, and the ending balance matches your statement.
2. Timeliness	You receive financial statements by a consistent date each month.
3. Uncategorized transactions	Accounts like “Uncategorized” or “Ask My Accountant” are close to zero at month-end.
4. Clearing accounts	“Undeposited Funds” and similar accounts aren't growing month after month.
5. Balance sheet	Cash, loan, and credit card balances match the statements from your bank and lenders.
6. Loan payments	Each payment is split between principal and interest, not recorded entirely as an expense.
7. Owner draws and personal expenses	Money you take out is recorded as draws or distributions, not business expenses.
8. Payroll	Wages and payroll taxes match your payroll reports, and payroll liabilities clear each period.
9. Accounts receivable	Your list of unpaid invoices matches reality, and old balances are followed up or written off.
10. Florida sales tax	If you collect sales tax, it's recorded as a liability and matches what you report to the state.

If you only check one thing, check the balance sheet. The profit and loss statement can look reasonable even when the books are wrong, but a cash balance that doesn't match your bank is hard to hide.

Red Flags Your Books Need Attention

You only hear from your bookkeeper at tax time.
Your CPA makes large adjustments every year when preparing your return.
Numbers from past months keep changing after you've already reviewed them.
Your bookkeeper can't explain why profit went up or down.
The same errors show up month after month.

One of these on its own isn't necessarily cause for alarm. Several together usually mean your books need a closer look.

Questions to Ask Your Bookkeeper

By what date each month will I receive my financial statements?
Are all of my accounts reconciled through last month?
What's currently sitting in uncategorized or clearing accounts?
How are my owner draws and personal expenses being recorded?
Do you coordinate with my CPA before year-end?

A good bookkeeper should be able to answer these questions clearly.

What If Your Books Aren't Right?

Inaccurate books can create tax problems and make it harder to understand your business's true financial position. They can also create complications when you're applying for financing or preparing to sell your business. If you're planning a sale, read how to clean up your business books before a sale.

Off the Bay Wealth reviews your bookkeeping and financial statements as part of our business financial planning. We help identify areas that may need attention and walk through your financial statements in plain English so you can better understand the numbers you're using to make decisions. If you're a business owner in Tampa Bay or elsewhere in Florida, feel free to book a consultation to get a second set of eyes on your books.

Frequently Asked Questions

How often should a bookkeeper reconcile accounts?

Every bank, credit card, and loan account should be reconciled monthly. Waiting until year-end makes errors harder to find and fix.

What reports should my bookkeeper give me each month?

At a minimum, a profit and loss statement and a balance sheet. Many businesses also benefit from an accounts receivable aging report and a cash flow statement.

What's the difference between a bookkeeper and a CPA?

A bookkeeper generally records day to day transactions and keeps your books current. A CPA is a licensed accounting professional who may provide services such as tax preparation, tax planning, accounting, financial reporting, and business consulting.

Should my bookkeeper and CPA work together?

Yes. When your bookkeeper and CPA coordinate throughout the year, your tax return is generally more accurate, year-end adjustments are smaller, and tax planning is easier.

This content is provided for educational and informational purposes only and should not be construed as investment, tax, or legal advice. It is not intended as a solicitation or offer to provide advisory services in any jurisdiction where Off the Bay Wealth, LLC is not properly registered or otherwise permitted to operate. Information presented is based on sources believed to be reliable; however, accuracy and completeness are not guaranteed. This material is not intended to be a comprehensive analysis of all topics discussed. IRS provisions are subject to ongoing guidance and regulatory updates. Any financial decisions should be made in consideration of your individual circumstances, including your goals, risk tolerance, and time horizon. Investing involves risk, including the potential loss of principal.