Insights to Help You Run Smarter
At Margin Method CPA, we help business owners simplify their finances and strengthen their operations. Explore actionable insights on bookkeeping, inventory strategy, job costing, and business setup—built for real-world decision-making.
What Every New Business Gets Wrong About Bookkeeping
What Every New Business Gets Wrong About Bookkeeping
When you're launching a business, bookkeeping usually lands at the bottom of the list—until it's too late.
And while you don't need complex financial systems from day one, the foundation you set early on will either support your growth or slow it down.
The Most Common Mistakes
New business owners often make these avoidable (but costly) missteps:
Mixing personal and business finances – One account for everything leads to a reporting nightmare
No clear chart of accounts – Random categories = meaningless reports
DIY-ing too long – Waiting until tax time to “figure it all out” usually ends in cleanup fees
Ignoring setup decisions – Entity type, accounting method, and QBO/Xero setup all impact your future
These early gaps create confusion, tax issues, and missed deductions down the line.
How to Get It Right From the Start
A clean financial start doesn’t have to be complicated—it just needs to be intentional:
Use separate business banking from day one
Choose the right accounting platform early (we recommend QBO or Xero)
Structure your chart of accounts to match your model (not someone else’s template)
Track startup costs separately to know what’s investment vs. operating spend
If you're not sure how to do all that—we can help.
How We Help New Businesses
Our New Business Formation package includes:
Entity structure support + EIN guidance
Initial QBO or Xero setup
A clean chart of accounts tailored to your operations
A 30-minute strategy session to answer your specific startup questions
We take care of the details, so you can focus on building.
Final Thought
You don’t need a full-time finance team to start smart—you just need the right setup.
Clean books from day one = fewer problems later.
Why Job Costing Fails (And How to Make It Work)
Why Job Costing Fails (And How to Make It Work)
If your margins are unclear, your pricing probably is too.
Many businesses rely on guesswork instead of data when it comes to job or product profitability. The result? Confusion, underpricing, and shrinking margins—even when revenue looks strong.
What Causes Job Costing to Fail?
It’s not a lack of effort—it’s a lack of structure. The most common reasons job costing fails include:
No process for tracking labor and overhead by job
Inconsistent treatment of inventory and material costs
Poor integration between your operational tools and accounting system
Reporting that doesn’t reflect how you quote or deliver work
When your accounting doesn’t mirror your business model, your job costing will always fall short.
What a Good Job Costing System Looks Like
Successful job costing isn’t just about tracking—it’s about decision-making.
A proper system should:
Break out labor, materials, overhead, and subcontractor costs
Tie actual costs back to each job, client, or product line
Give you margin clarity per job—not just at the P&L level
Align with your quoting or pricing strategy
At Margin Method CPA, we help businesses build and maintain exactly that.
What We Do in a Job Costing Audit
Our one-time job costing workflow audit includes:
Review of your current system (or lack of one)
Cleanup and setup of proper cost tracking in QBO/Xero
Guidance on labor and overhead allocation
Simple, usable templates to track jobs going forward
Recommendations tailored to your model
It’s part accounting, part operations—and 100% strategic.
Why It Matters
If you don’t know which jobs are profitable, you’re flying blind. We’ve seen small tweaks in costing and structure lead to huge clarity in margins, quoting, and team focus.
If your business involves custom jobs, client work, or inventory movement, job costing isn’t optional—it’s essential.
The Real Cost of Messy Books (And How to Fix Them)
The Real Cost of Messy Books (And How to Fix Them)
If your books aren’t clean, your decisions aren’t either.
Many small businesses operate for months—or even years—with financials that are incomplete, inconsistent, or simply wrong. The result? Stress, missed opportunities, and bad decisions based on bad data.
What Are “Messy Books,” Really?
Messy books aren’t just about disorganization. They often include:
Incorrect categorization of income and expenses
Missing or unreconciled bank and credit card accounts
Duplicate or unreconciled transactions
No clear chart of accounts structure
Inaccurate inventory, job costing, or owner draws
When your books are messy, your reports are misleading—and so are your margins.
Why It Matters More Than You Think
Poor financial records affect:
Tax prep – Scrambling at year-end costs more and risks errors
Cash flow – You can’t manage what you can’t see
Growth – Banks and investors rely on clean, trustworthy reports
Strategy – Your margins, pricing, and decisions hinge on accuracy
If your business is growing or your operations are getting more complex, clean books aren’t optional—they’re your foundation.
What a Financial Reset Looks Like
At Margin Method CPA, we offer one-time cleanup projects that reset your entire system:
Review and restructure chart of accounts
Reconcile all accounts for accuracy
Remove duplicates and recode errors
Align financial reports with how you operate
Set up processes to keep things clean going forward
Who Needs This?
You likely need a reset if:
You’ve switched systems (e.g., Excel to QBO/Xero)
You’re catching up on months of unreconciled transactions
You’re using your reports but not trusting them
You’re preparing for financing or a tax review
Let’s Clean It Up
Clean books don’t just make taxes easier—they make every decision better. If you’re ready for a system you can trust, we can help.