You're not crazy—and your accountant isn't necessarily wrong. Profit and cash are two different lenses on the same business. Why Profit and Cash Don't Match Profit is an accounting result. Cash is money in the bank. They drift apart because of things like: ·        Timing of invoices and collections  – You've "earned" the revenue on paper, but the customer hasn't paid yet. ·        Prepaid or deferred revenue  – Customers pay early, but you can't recognize it as revenue yet

Ever looked at your bank account and thought, “Wow, business is booming!”  … only to realize two weeks later that half those deposits were late payments from last year, and oh look—your bills are stacked higher than your coffee mug? Yep. That’s the magic (and chaos) of accounting methods. The way you choose to count your money —cash vs. accrual—can completely change the story your numbers are telling. And trust me, it’s not just bean-counter nitpicking. This choice can affect

At first, DIY bookkeeping feels scrappy and smart—you're saving money, staying close to the numbers, and learning a lot. But as your business grows, what once worked starts to fray at the edges. Late nights in QuickBooks, tax-season panic, and murky financials are not badges of honor—they're signs that your business is ready to graduate to something better. If you’re feeling the strain, you’re not alone. Here are the Top 5 Signs you’ve outgrown DIY bookkeeping—and why making

1. Financials Tell Your Business Story Your P&L, balance sheet, and cash flow statements aren’t just numbers — they show how your business makes money, spends money, and grows . Buyers use them to evaluate risk, forecast returns , and understand operations without needing to read between the lines. Think of your financials as the résumé of your company.  The cleaner and more compelling it is, the more confidence you inspire. 2. Valuation Is Based on Financials Most buyers (es

When you're looking at selling or partnering the type of buyer — Private Equity , Strategic , or Individual —can have very different motivations, deal structures, and implications  for you as a seller or executive.  Here’s a breakdown of how they typically compare:  1. Private Equity (PE) Buyers   ✅ Pros   Experienced dealmakers  — they know how to close.  Bring capital, structure, and operational expertise .  Often leave management in place  and incentivize them with equity

For growth-focused business owners, accounting isn't just a compliance function—it's your decision engine. Poor financial visibility doesn't just hurt your books; it erodes your confidence and limits your options. At Sophos Financial Advisory, we work with clients who’ve outgrown reactive bookkeeping and need deeper insight, clarity, and strategic foresight. If your current accounting service is showing any of the signs below, your business could be absorbing unnecessary risk