Let’s cut to the chase: You didn’t start your business to scrape by. You started it for freedom, impact, and—yes—money. So why are you still paying yourself less than you’d make at a mediocre corporate job? The hard truth? It’s not because your business isn’t making money. It’s because you haven’t structured it to pay […]

Let’s cut to the chase: You didn’t start your business to scrape by. You started it for freedom, impact, and—yes—money. So why are you still paying yourself less than you’d make at a mediocre corporate job? The hard truth? It’s not because your business isn’t making money. It’s because you haven’t structured it to pay YOU first.

Welcome to the Profit First reality check. If your bank account is playing a never-ending game of “maybe next month,” it’s time to rewrite the script. Here’s why you’re not earning six figures yet—and how to fix it before burnout eats you alive.

1. You’re Trapped in the “Leftover” Mindset

Too many business owners pay themselves whatever’s “leftover” after expenses. Spoiler: There’s never enough leftover. The problem? You’re treating profit like an afterthought instead of a priority.

Fix It: Flip the formula.

Instead of Revenue – Expenses = Profit, switch to Revenue – Profit = Expenses. This forces you to build a business that can actually sustain your personal financial goals.

2. You Don’t Have a Profit System

If your financial strategy is “I’ll figure it out when I have time,” you’ll never have time. Or money. Profit needs a system—one that ensures you consistently pay yourself first.

Fix It: Use the Profit First method.

Allocate percentages of every dollar that comes in. A basic starting point? 15% to taxes, 40% to owner’s pay, 40% to operating expenses, and 5% to pure profit. Adjust as needed, but stick to the system.

3. You’re Playing CFO Without a Playbook

Let me guess—you started your business because you’re great at what you do, not because you love spreadsheets. And yet, here you are, winging it with no financial strategy.

Fix It: Get help.

If you don’t have a CPA or bookkeeper who understands entrepreneurial money flow, get one. Financial clarity is the difference between “barely scraping by” and “consistent six-figure paychecks.”

4. Your Pricing is a Dumpster Fire

Too many business owners underprice their services out of fear. The result? You’re working twice as hard for half the money.

Fix It: Charge what you’re worth.

Calculate your real costs (including your OWN six-figure salary) and price accordingly. If you lose a few clients who balk at the price, good. The right ones will pay.

5. You’re Stuck in Growth Mode Without a Profit Plan

More revenue should mean more money in your pocket. But if you’re scaling without controlling costs, you’re just running harder on a financial hamster wheel.

Fix It: Scale smarter.

Before you chase bigger revenue, make sure your current revenue is actually working for you. If you can’t pay yourself well now, more sales won’t fix it—they’ll just make the problem bigger.

6. You Haven’t Made the Leap to Seven Figures

Six figures is great, but why stop there? If you’re running a business that’s generating solid revenue and you’re consistently paying yourself well, it’s time to start thinking bigger.

Fix It: Shift from operator to CEO.

The difference between a six-figure entrepreneur and a seven-figure business owner? Systems and mindset. Automate, delegate, and focus on high-value tasks that generate exponential returns.

Ready to Pay Yourself What You Deserve?

Your business exists to serve YOU, not the other way around. If you’re still taking scraps, it’s time to shift your mindset, get strategic, and claim the six-figure paycheck you should be earning.

Start today. Because “next month” isn’t a strategy—it’s a stall tactic. And you deserve better.

Let’s be real—running a business is exhilarating, but taxes and bookkeeping? Not so much. Most entrepreneurs would rather focus on scaling their business than balancing a spreadsheet. But here’s the hard truth: Ignore your numbers, and they will come back to haunt you—usually in the form of IRS notices, cash flow crises, and gut-wrenching stress. […]

Let’s be real—running a business is exhilarating, but taxes and bookkeeping? Not so much. Most entrepreneurs would rather focus on scaling their business than balancing a spreadsheet. But here’s the hard truth: Ignore your numbers, and they will come back to haunt you—usually in the form of IRS notices, cash flow crises, and gut-wrenching stress.

I’ve seen it all as the owner of Go Figure Accounting. And trust me, the biggest financial disasters don’t happen because business owners are bad at math. They happen because of avoidable mistakes. So let’s break down the seven ways business owners fail at their taxes and bookkeeping—and how you can dodge these pitfalls before they sink your business.

1. Mixing Business and Personal Finances

Your business isn’t your personal piggy bank. Yet so many entrepreneurs swipe their business card for personal expenses—or vice versa. Not only does this create a bookkeeping nightmare, but it also makes tax time a mess.

Fix It: Open separate bank accounts for your business. Keep every expense categorized properly, and if you must take money out, do it through owner distributions (and make sure you’re paying yourself properly!).

2. DIYing Without Understanding Accounting Basics

Yes, bookkeeping software like QuickBooks and Xero make things easier. But just because you can do it yourself doesn’t mean you should. Misclassifying transactions, skipping reconciliations, and misunderstanding cash flow can lead to costly errors.

Fix It: If you’re not a numbers person, hire a professional—at least for quarterly check-ins. You’ll save time and avoid expensive mistakes.

3. Ignoring Profitability in Favor of Revenue Growth

Revenue is exciting. It makes you feel like you’re winning. But if you’re not keeping an eye on profitability, your high revenue might be hiding razor-thin margins—or worse, losses.

Fix It: Track profitability monthly. Follow the Profit First method—allocate profit first, then budget expenses accordingly. A business that runs on profits, not just revenue, is a business built to last.

4. Forgetting About Estimated Taxes

The IRS isn’t your forgiving best friend. If you don’t set aside money for estimated taxes throughout the year, you’ll get hit with penalties and a hefty bill come tax season.

Fix It: Plan ahead. Every time you make money, set aside at least 15% for taxes in a separate account. Work with a CPA to ensure you’re paying the right amount each quarter.

5. Not Keeping Receipts and Documentation

Your bank statement is not an expense tracker. If you get audited and can’t produce receipts, you could lose out on deductions—or worse, owe back taxes with penalties.

Fix It: Use an app like Expensify or Dext to snap photos of receipts and categorize them instantly. Store everything digitally so it’s easy to access if (or when) you need it.

6. Ignoring Cash Flow Until It’s a Crisis

Profitable businesses still go bankrupt. Why? Cash flow. If you don’t know what’s coming in and going out, you could end up scrambling to make payroll or cover expenses.

Fix It: Forecast your cash flow monthly. Don’t assume money in the bank means you’re in the clear—plan ahead and keep a buffer for slow months.

7. Waiting Until Tax Season to Get Organized

If April 15th (or March 15th for S-corps and partnerships) is your wake-up call, you’re already behind. Scrambling to pull together financials at the last minute leads to missed deductions and costly errors.

Fix It: Stay ahead. Reconcile your books monthly, review financial reports, and check in with your accountant regularly. Don’t make tax season a panic-driven scramble—make it a smooth, predictable process.

Bottom Line: Your Finances Need to Work For You, Not Against You

Bookkeeping and taxes aren’t just about compliance—they’re about financial clarity. When you take control of your numbers, you take control of your business’s future.

The good news? You don’t have to go at it alone. Whether it’s hiring a CPA, implementing Profit First strategies, or just setting up better financial systems, the right moves today can save you a world of headaches (and money) down the line.

So ask yourself—are you in control of your finances, or are they controlling you? If you’re not sure, now’s the time to change that.

If you’re running a Managed Service Provider (MSP) or cybersecurity firm, you already know the industry is moving at breakneck speed. With private equity firms circling like hawks and larger players gobbling up smaller ones, the M&A scene is hotter than ever. Whether you’re looking to cash out or merge with a bigger name, the […]

If you’re running a Managed Service Provider (MSP) or cybersecurity firm, you already know the industry is moving at breakneck speed. With private equity firms circling like hawks and larger players gobbling up smaller ones, the M&A scene is hotter than ever. Whether you’re looking to cash out or merge with a bigger name, the biggest deal-breaker isn’t your tech—it’s your books.

As a CPA and Profit First Professional who’s seen deals soar and crash, I can tell you one thing: If your financials are a mess, your dream exit could turn into a nightmare. So, let’s talk about how to get your financial house in order before you even think about selling your MSP or cybersecurity business.

1. Know Your Numbers—Really Know Them

Buyers want clean financials. Period. If your revenue is unpredictable, expenses are unclear, and contracts aren’t properly accounted for, you’re in trouble. Here’s what you need to focus on:

• Recurring Revenue vs. One-Time Sales – Buyers love Monthly Recurring Revenue (MRR). If most of your business comes from project-based work, expect a valuation hit.
• EBITDA Matters More Than You Think – Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is the magic number in M&A. Run a profitability analysis and normalize expenses so your EBITDA is crystal clear.
• Deferred Revenue Accounting – Cybersecurity and MSP firms often bill in advance for services. If you’re not handling deferred revenue correctly, you could be overstating your earnings—something that can kill a deal in due diligence.

2. Clean Up Your Books Before Buyers Do

Your books should be as sharp as your security protocols. Sloppy financials scream risk, and buyers will use that to lower their offer—or walk away entirely.

• Separate Business & Personal Expenses – It sounds basic, but you’d be surprised how many owners mix personal and business transactions. Clean it up.
• Fix Your Chart of Accounts – If your financial statements look like a maze, simplify them. Create clear categories for revenue, expenses, and liabilities.
• Ensure GAAP Compliance – Generally Accepted Accounting Principles (GAAP) matter in the M&A world. If you’ve been using cash accounting, consider switching to accrual to better reflect your business’s financial health.

3. Get Your Contracts in Order

MSPs and cybersecurity firms rely on service contracts, but many sellers don’t realize how much these agreements impact valuation. Buyers want clarity and security, not surprises.

• Ensure Contracts Are Assignable – If your customer contracts don’t have an assignment clause, transferring them to a new owner could be legally complicated.
• Standardize Terms & Pricing – If you have different pricing models across clients, that’s a red flag. Buyers want predictable revenue streams, not chaos.
• Lock in Multi-Year Agreements – The longer your contracts, the better your valuation. If you’re month-to-month with most clients, start pushing for at least 12- to 24-month agreements.

4. Work with the Right M&A Team

Even the cleanest books won’t sell your business for you. You need an A-team to get the best deal.

• Hire a CPA Who Knows M&A – Not all accountants understand how to structure a business for sale. Find one who does.
• Work with an M&A Advisor – These pros help negotiate the best deal and navigate the process.
• Legal Expertise is a Must – Cybersecurity M&A deals often involve complex liability issues. A lawyer specializing in tech acquisitions can save you from hidden pitfalls.

5. Have a Post-Sale Plan

Congrats, you closed the deal! Now what? Some buyers want founders to stick around for a transition period, while others prefer a clean break.

• Earn-Outs vs. Lump Sums – Some deals include earn-outs, where you get paid based on future performance. Know the risks before agreeing.
• Non-Compete Agreements – Many buyers will want a non-compete clause. Make sure it’s fair and doesn’t box you out of your next venture.
• Tax Planning – A big payout sounds great—until the tax bill hits. Work with a CPA to minimize capital gains taxes and maximize your net earnings.

Final Thoughts

Selling your MSP or cybersecurity business is a high-stakes game, and getting your financials right is the key to a successful exit. Treat your books like you treat your clients’ networks—secure, organized, and bulletproof. With clean financials, solid contracts, and the right team by your side, you won’t just sell your business—you’ll maximize its value.

So, before you start entertaining offers, ask yourself: Are my books deal-ready? If the answer isn’t a resounding “yes,” it’s time to clean up before the buyers come knocking.