PLS Balance My Books: BLOG

When I hear "I need a CPA", and what it really means.

I’ve seen this question come up a lot lately, and most of the time people are asking the wrong question.

What I keep hearing is: ‘I need a CPA.’
What they usually mean is something very different.

When business owners say “I need a CPA,” they’re often really saying:

- “I don’t trust my numbers.”
- “I don’t understand my financials.”
- “Cash feels tight and I can’t explain why.”
- “My tax person keeps asking questions I don’t know how to answer.”
- “I need someone to explain what these reports actually mean.”

That’s usually not a tax problem. That’s a clarity problem.

There are situations where a CPA is absolutely the right choice. If you’re explicitly looking for help filing business or personal taxes, doing tax planning, dealing with the IRS, or going through an audit or other attest work, then a CPA is non-negotiable. Those services require a licensed professional, and that’s exactly what CPAs are trained and authorized to do.

But if what you’re really seeking is confidence in your numbers, better visibility into cash flow, or help understanding whether the business is actually profitable, a CPA is often not the best first stop. In those cases, a bookkeeper can get the books clean, accurate, and consistent, and a Fractional CFO can help interpret the financials, spot risks, and translate the numbers into real business decisions.

In practice, these roles work best together. Bookkeepers build and maintain the foundation. Fractional CFOs help explain the story behind the numbers and guide decisions before problems show up. CPAs step in when it’s time for compliance, filings, or regulated work. When those pieces are in the right order, everyone’s job gets easier—and usually cheaper.

The real question isn’t “Do I need a CPA?”
It’s “What problem am I actually trying to solve?”

Because compliance problems need a CPA.
Clarity and insight problems usually don’t.

Why You Should Always Collect a W-9 Before Paying a Contractor

A simple business habit that saves you from end-of-year chaos.

Most businesses don’t think about contractor paperwork until tax season rolls around and suddenly everyone’s scrambling like it’s the final round of The Amazing Race: 1099 Edition. And every year, we see the same pattern: great businesses, smart owners, and absolutely zero W-9s on file for half the people they paid.

As a bookkeeping firm, we can confidently say this is one of the easiest problems to fix—and one of the biggest stress-reducers you can build into your operations.

Collecting a W-9 before you pay a contractor their first dollar is one of those deceptively simple steps that completely changes how smooth your financial processes feel at year-end. Let’s break down why this tiny habit matters so much.

What a W-9 Actually Does (Besides Ruining People’s Day If You Ask Too Late)

A W-9 gives you the contractor’s legal name, tax classification, and taxpayer identification number (TIN). In plain English: it tells you exactly who you paid and how the IRS expects you to report it.

When you have this upfront:

Your records match IRS expectations.
Your 1099 filing in January is accurate.
Your accountant isn’t hunting you down for missing info like a bounty hunter.
You don’t waste time guessing whether someone is an LLC, a sole prop, or a “half-set-up-business-I-swear-I’m-working-on-it.”
You avoid needing to issue backup withholding because you didn’t get their TIN.

That last one is a big deal. If you pay a contractor without a W-9 and they later ghost you, you’re still responsible for sending a 1099 — and you may be stuck doing backup withholding you didn’t know was required.

In short: the W-9 isn’t busywork. It’s the foundation for everything else that happens at tax time.

Why Before Payment Matters (Spoiler: People Respond Faster Before They’ve Been Paid)

Contractors are motivated when they’re onboarding with you. They have every reason to get their paperwork done correctly so invoicing and payment can begin. This is the sweet spot.

But ask for a W-9 eight months later?

You’re suddenly one of 67 notifications on their phone, and getting that form back becomes a game of digital hide-and-seek. And if they’ve moved, changed emails, or shut down their business? Good luck.

Collecting it before payment does three things:

It sets the tone that your business runs efficiently.
It prevents December chaos when you need 1099s prepared.
It protects you if the contractor disappears or rebrands later.

Future you will be singing your praises.

How This Simple Habit Makes Year-End 10x Easier

January is 1099 season. And if you're doing things the right way, it’s also month-end, quarter-end, and year-end in one big blender.

When W-9s are collected on day one:

Your 1099s can be generated quickly and accurately.
Your CPA or bookkeeper doesn’t need to chase down missing details.
There are no delays, no hold-ups, and no “I hope this is the right address.”
You avoid late filing penalties because everything was ready.

Your bookkeeper will thank you. Your CPA will thank you. Honestly, the IRS would thank you too… if they were into gratitude.

How to Build This Into Your Contractor Onboarding

Here’s the easiest operational win you’ll have this quarter:

Make the W-9 part of the onboarding checklist.

Not optional. Not “I’ll get to it later.” Right there with the contract and the W-4 or ACH info if you’re paying via direct deposit.

A simple workflow:

Contractor provides W-9.
You store it securely (Google Drive, SharePoint, Keeper, etc.).
Then you approve their first invoice or issue the first payment.

This takes maybe 2–3 minutes per contractor. But the payoff at year end is enormous.

The Bottom Line

If you want cleaner books, smoother tax filings, fewer surprises, and no chaotic “W-9 scavenger hunts” at year-end, the solution is ridiculously simple:

Collect the W-9 before you pay the contractor. Every time. No exceptions.

It’s a small step that saves hours of stress later—and your bookkeeper (hi 👋) will love you for it.

Celebrating Our Ribbon Cutting with the Owasso Chamber of Commerce

There are some moments in business that make you stop, look around, and really appreciate how far you’ve come. Our recent ribbon cutting with the Owasso Chamber of Commerce was one of those moments for us at PLS Balance My Books.

On October 29, 2025, we gathered at the Chamber's office surrounded by family, friends, clients, and fellow business owners to officially celebrate our launch and our growing role in the Owasso community. The energy in the room was incredible — laughter, handshakes, hugs, and the shared excitement that comes when people who believe in small business success.

A Celebration of Community

From the very beginning, we’ve said that PLS Balance My Books isn’t just about numbers — it’s about people. The relationships we build with our clients, colleagues, and community partners are the foundation of everything we do.

Seeing so many familiar faces in one room — from long-time friends to new Chamber connections — was both humbling and heartwarming. It was a reminder that community is what makes small businesses thrive. We’re not just balancing books; we’re building trust, collaboration, and confidence across our local business ecosystem.

The Owasso Chamber team went above and beyond to make the event special, and we’re grateful to be part of an organization that truly invests in helping local businesses succeed. The sense of support we felt that day reflects exactly why we chose Owasso as our home — it’s a place where businesses look out for one another.

Reflecting on the Journey

Like many small businesses, PLS Balance My Books started as an idea — one built around experience, passion, and a shared belief that financial clarity shouldn’t be confusing or intimidating.

Layne’s 20+ years of bookkeeping experience gave us a rock-solid foundation of expertise and precision. Pair that with a drive to bring modern, tech-enabled solutions to small-business owners, and PLS was born.

Since launching earlier this year, we’ve had the privilege of partnering with local entrepreneurs, service providers, and non-profits who trust us to help them make sense of their numbers — and use that insight to grow.

This ribbon cutting wasn’t just a formality. It was a milestone moment to pause, celebrate, and acknowledge the people who’ve helped us get here:

Our clients, who’ve trusted us with their financial stories so far.
Our family and friends, who’ve encouraged us every step of the way.
And our community partners, who’ve welcomed us into the Owasso business family.

Looking Ahead

As we move forward, our mission remains simple: to help small-business owners gain clarity, confidence, and control over their finances — so they can focus on what they do best.

We’ll continue expanding our partnerships, refining our services, and staying active in the local business community through the Chamber, networking groups, and volunteer opportunities.

This event may have marked our “official launch,” but in many ways, it felt like just the beginning.

To everyone who joined us — whether in person or in spirit — thank you for making this milestone unforgettable. Your support means more than words can say.

Here’s to new beginnings, continued growth, and a community that truly believes in helping each other succeed. 💜💛

PLS Balance My Books
Helping local businesses find balance, one set of books at a time.

#OwassoChamber #RibbonCutting #SmallBusiness #Bookkeeping #OwassoOK #Community #PLSBalanceMyBooks

When Profit Doesn’t Pay the Bills: A Common Cash Flow Trap (and How a Bookkeeper Can Help)

Here’s a scenario I’ve seen play out more times than I can count: A small business owner pulls up their profit and loss statement and sees a solid bottom line. Business is booming! Clients are happy! Sales are up!

But… they’re still struggling to make payroll. Vendors are sending reminders. The checking account balance feels way too low for how “profitable” the business looks on paper.

What gives?

It’s a classic case of cash flow vs. profit, and one of the most common traps small businesses fall into:
a timing mismatch between money coming in and money going out.

The Problem: Revenue Timing Mismatch

You might invoice a client today, but that doesn't mean the money hits your account today. Or even this week. Or this month.

Meanwhile, your bills, subscriptions, vendor payments, and payroll don’t wait. They’re all on a schedule—one that might not line up with when your revenue actually arrives.

This is especially painful if:

Your customers have long payment terms (net 30, net 60, etc.)
You carry a lot of upfront costs (like materials, inventory, or subcontractors)
You’re growing fast and need to spend money to scale before the revenue follows

In these cases, even a profitable business can run into serious cash crunches.

The Fix: Real-Time Bookkeeping and Cash Flow Awareness

This is where a bookkeeper earns their keep. A good bookkeeper doesn’t just categorize your expenses and spit out monthly reports. They help you understand how and when cash is moving, and more importantly—what’s coming next.

Here’s what that looks like in practice:

✅ Tracking cash in and cash out in real time
✅ Identifying clients who chronically pay late
✅ Building a simple, actionable cash flow forecast
✅ Helping you time your expenses (payroll, purchases, etc.) to align with incoming revenue
✅ Working with you on invoicing strategy: when to bill, when to follow up, and how to tighten up your terms

When your books are up to date and your cash flow is visible, you make smarter decisions. You stop guessing. You stop panicking.

You stop that awful feeling of “Wait, where did all the money go?”

TL;DR:

Profit is nice. But cash flow is survival.
And for many small business owners, the missing link between the two is a good bookkeeper.

If you’re tired of feeling profitable but broke, it might be time to bring someone in to help keep your cash flow healthy and your stress levels low.

Why Small Business Owners Should Pay Themselves a Regular Salary

When you start your own business, one of the most appealing perks is the freedom—especially financial freedom. You can pull money out of the business whenever you need or want it, taking an owner's draw whenever cash flow allows. While this may seem like flexibility at its finest, it can actually introduce more chaos than comfort into your financial life.

Transitioning from random owner’s draws to paying yourself a regular salary can significantly impact not only your business’s financial stability but also your long-term growth and tax efficiency.

For most small businesses, your tax structure often dictates how you pay yourself. If your business is structured as a sole proprietorship or single-member LLC, your income is considered pass-through and reported on your personal tax return. In these cases, taking owner's draws might feel simple, since you’re not technically on payroll. But this informal practice can cause significant confusion, muddying your financial picture and obscuring your business’s true profitability.

On the other hand, if your business is structured as an S-corp, you're required by the IRS to pay yourself a "reasonable salary." That doesn't mean occasional draws when cash flow is positive; it means consistent compensation that aligns with market rates for your role and responsibilities. Even businesses structured as LLCs taxed as S-corps benefit significantly from formalizing owner compensation through a salary.

One of the key advantages of paying yourself a regular salary is clarity. When you take sporadic owner’s draws, it’s hard to differentiate between business profits and personal expenses. This blurs your financial records and makes it difficult to accurately measure your business’s health or plan for the future. Conversely, paying yourself a regular, structured salary clearly defines your personal compensation as a fixed operating expense. This approach gives you more control over both personal and business finances, reducing stress and uncertainty.

Beyond clarity, consistently paying yourself a regular salary adds tangible value to your business,
particularly if you ever decide to sell or seek outside investors. When potential buyers or investors look at your financial statements, they'll evaluate the true profitability of your business. If your profits rely heavily on you working countless unpaid hours, the business's actual market value diminishes significantly. Your time, after all, is not truly free—even if you treat it that way.

In contrast, a business that clearly pays its owner a market-rate salary and still turns a healthy profit sends a powerful signal to potential buyers or investors. It demonstrates that your business can sustain itself, cover all operational expenses, and still generate profit above and beyond your labor costs. This scenario positions your business as a self-sufficient entity rather than just a job you've created for yourself, ultimately making it much more attractive and valuable.

Additionally, establishing a consistent salary builds financial discipline within your company. It forces you to budget effectively and maintain clear financial boundaries. This discipline helps ensure your business is truly profitable, not just surviving month-to-month. Over time, this can enable you to scale, hire additional staff, or even step back from daily operations if you choose.

Lastly, there's an often-overlooked psychological benefit: paying yourself regularly acknowledges your value. Many small business owners neglect their own compensation, leading to burnout and resentment. Consistent, fair compensation reinforces your worth as a key contributor to your own company, boosting morale and helping you stay motivated and engaged in the long run.

Shifting from chaotic owner's draws to a consistent, clearly defined salary isn’t merely an accounting adjustment; it’s a strategic business decision. It enhances your company’s professionalism, clarifies your true profitability, and positions your business for sustained success and potential future sale.

Before you make the transition, however, it's critical to speak with a qualified tax professional or CPA who can help you understand the best strategy for your unique circumstances. They can evaluate your business structure, guide you toward an appropriate salary level, and help ensure that your compensation strategy aligns with current tax guidelines and regulations. Taking this step will help you make informed decisions that best benefit you and your business in the long term.