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Business Insights

CEO Spotlight – Xendoo Accounting

Frank Dowie
5 Minutes to read

Xendoo Accounting CEO Lil Roberts Answers Top 7 Questions For Small Business Owners

1. What is the number one misconception of accounting for small businesses?

To briefly share about our background, the founding team and I are all business owners and entrepreneurs from various industries who exist solely to serve other business owners. We all recognized the immense importance of bookkeeping and accounting, and the simple fact that do-it-yourself (DIY) and traditional accounting services did not serve the real time needs of our own businesses. 

As we continue to scale nationwide, we still find ourselves solving the day one common misconception that small business owners believe that they can’t afford expert accounting services or that they will save money by doing the bookkeeping inhouse or by themselves.

The reality of this decision is that inhouse bookkeeping, in the long run, ends up being much more costly and leaves you open to tax issues, hefty penalties, and cash flow problems. Without accurate, up-to-date and timely accounting records, DIY bookkeeping will seriously limit your financing options and impede your ability to grow. 

2. With so much technology and information readily available to small business owners, why do entrepreneurs choose to not outsource their accounting services?

As small business owners, we have empathy and a long history on how the economy and market forces impact business owner decisions. We typically see business owners fall into one of the following three categories when choosing to keep bookkeeping inhouse:  

  1. They don’t understand the impact of the digital transformation  
  2. They believe they are saving money 
  3. They don’t account for the value of their personal time investment 

3. How does accounting factor in when small business owners are planning to grow and scale?

Bookkeeping and accounting are the most important factors in growing and scaling any business. It is impossible to scale and grow without accurate and up-to-date financial information. With accurate and up-to-date financials a business owner can obtain additional capital, make fiduciary decisions, understand the areas of business that require investment, ensure they’re being paid or paying on time, and adjust quickly to changing market conditions.

4. At what stage of growth should a small business engage with Xendoo?

We don’t have a one size fits all methodology for business owners as some business owners are selling products while others are selling time. We assist sole proprietors or solopreneurs, with $250k in annual revenue, to large organizations operating models that require multiple team members within $60MM+ in annual revenue. Ultimately, if you’re a business owner selling time with high margins, annual revenue of $150k could easily trigger our expert support and guidance, or you could be selling products with lower margins and recognizing $200k in annual revenue, either way, your books need to be reconciled regularly and need the support of an accounting expert. 

5. What does Xendoo focus on when working with a small business owner?

We focus solely on the needs of small business owners. Our main priority is to understand your business needs and create a solution that caters to your specific business. From cash basis to full accrual, we follow that up with a high level of communication to ensure we are following the same path and creating a relationship that can scale. Our technology platform and seamless integrations make bookkeeping in 2023 less arduous and easier to focus on the numbers.

6. What can NEWITY and Xendoo provide small business owners in partnership?

Running a business is a challenging task that requires a lot of commitment, effort, and attention to detail. Most business owners do not know that 82% of small businesses failures are due to cash flow management challenges. Besides managing all aspects of the business, taking care of your books is crucial to achieving financial success while being tax ready all year round. 

Our partnership with NEWITY will help you: 

  1. Avoid an Audit! Filing your business taxes on time, even if you can’t pay (the IRS will work with you), will avoid hefty fines or legal action and maintain your business financial health in good shape. By staying on top of your bookkeeping, you avoid further issues and stay on good terms with the IRS and other regulatory agencies.  
  2. Obtain a Business Loan!  Having up-to-date financials will give you a clear picture of your loan needs and improve any application process. Lenders will want a solid financial history and a clear picture of your current financial health. We will help you increase your chances of securing the funding you need to grow your business. 
  3. Avoid Costly Mistakes. Consistent bookkeeping helps you avoid mistakes such as heavy inventory, inaccurate invoices, predatory lending options, and accounts receivable and accounts payable errors. 
  4. Identify Fraud and Errors Keeping your financial records up-to-date can help you identify potential fraud or errors. Regularly reconciling your bank accounts, credit card statements, and invoices can help you quickly catch any discrepancies and take appropriate action to rectify them. Doing so can protect your business financial integrity and prevent losses due to fraudulent activities. 
  5. Focus on Growth, Not Your Bookkeeping! When your books are in order, you can devote your time and energy to other business areas, such as marketing, sales, or product development. Xendoo is a great partner whether you need help getting caught up or staying up to date on your bookkeeping. 
  6. Achieve financial peace of mind with up-to-date bookkeeping and enjoy the benefits of a healthy and thriving business! 

7. If you could give one piece of advice for small business owners, what would it be?

Never write the end of your story!  Your life can quite literally change in 180 seconds; follow the signals in your business, hire team members that are critical thinkers, keep your eye on the ultimate goal, envision the end result, manage foundational basics, celebrate small wins, and stay focused on measurable outcomes.  Success is right in front of you! 

Interested in learning more about Xendoo Accounting?

To qualify for an SBA 7(a) small business loan, your business must be:

  1. U.S.-based and operated
  2. Owner supported / owner funded
  3. Eligible per the SBA’s requirements

Your loan amount will determined by the business’ average annual revenue, FICO score, and years in business