The Business Beautician

Straightening Out the Path to $26 Million

Meet Coach Christina, the expert who initially dreamed of attending beauty school, but whose love for math and an early accounting course (where she manually reconciled a 13-page ledger) set her on a different, lucrative path. After decades in public accounting—30 years in the field and 26 years with her Omaha firm—she earned a new title: The Business Beautician. She doesn't give perms; she "straightens out the books" to clean up, condition, and freshen up business financials.

Christina’s work begins where many small business owners get lost: the difference between transactional bookkeeping and strategic accounting. Bookkeepers track, categorize, and reconcile, but accountants analyze, plan for taxes, and compare year-over-year performance.

The Hidden Financial Leak

The single most common financial mistake young and seasoned businesses make is misunderstanding cash flow. As Christina warns, money in the bank does not equal profit, and a lack of money doesn't guarantee a loss.

The immediate hazard for growing businesses is taking money out (owner draws) when revenue is high. Since taking money out doesn't affect the Profit & Loss statement, owners often spend cash that is actually earmarked for future tax liability. Christina frequently faces situations where business owners lack the $40,000 or $50,000 needed to cover payroll taxes and wages after determining reasonable S-Corp earnings. The ultimate KPI small businesses must track is the cash flow statement, which answers the core question: "Where the money go?".

The Pivot to Profit

This is where Christina’s Profit Enhancement Consulting comes in—combing the books and analyzing the numbers to strategically shave costs or pivot operations.

She shared the story of a construction client whose revenue was "really good," but he kept losing money. Her team discovered the client was constantly "bolting on" additional pieces of revenue that ended up costing him more than they brought in. Once they helped the client shave off these costly additions and hone in on a specific niche, the client was able to pivot his focus, leading to a business valuation of $22 million to $26 million.

The Human Element

While modern software like QuickBooks makes life easier by downloading transactions, AI cannot replace the human strategic element. AI categorizes based on past transactions (e.g., Office Max purchase = office supplies), but it can't determine if a $2,600 printer should be classified as a fixed asset or fully expensed using the de minimis rule or special depreciation. Human accountants provide the critical judgment necessary to maximize deductions and plan tax strategy.

For new entrepreneurs, Christina advises two non-negotiable steps:

1. Develop a Game Plan with a 3 to 5-year vision for the business structure.

2. Establish the Entity and open a separate bank account immediately, tracking all personal expenses spent for the business before the entity was created.

To stay on top of the books, busy entrepreneurs should be proactive, not reactive, blocking four to five hours per month to categorize transactions and pull up the P&L and Balance Sheet for immediate analysis.

The Plant Analogy

Christina’s final advice is simple: Your books are like a plant.

They need water, feeding, and cleanliness, but above all, they need attention. If you give your books attention and know what they are doing, it will fuel your business and put you on the trajectory to success.

To connect with Coach Christina and start giving your books the attention they need, you can email her at Christina@blueprintbookkeepingcoach.com 

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