Running a successful business requires more than passion and hard work — it demands a deep understanding of your finances, solid accounting practices, and trustworthy professional support. In this blog, we explore into an enlightening conversation with Connor Malatesta from Markoff & Malatesta CPAs, PLLC, a firm based in Wake Forest, North Carolina, that offers comprehensive CPA services, business coaching, fractional CFO expertise, and much more. Whether you’re a small business owner, an entrepreneur transitioning to a larger operation, or a professional pursuing licensure, the insights shared here will help you safeguard your business’s financial health and manage the complexities of professional licensing.
Markoff & Malatesta CPAs, PLLC is not your typical CPA firm. While they specialize in tax preparation, tax planning, and payroll, their services extend far beyond traditional accounting. They provide business coaching, fractional CFO services, and problem-solving support on a wide range of money-related issues. Their clients span across the United States. This national reach, combined with a distributed team, allows them to bring diverse expertise and innovative solutions to businesses of all sizes and industries.
Connor emphasizes that their firm handles everything related to money, including helping businesses get caught up on taxes, dealing with IRS issues, improving business processes, and managing payroll problems. Their goal is to equip clients with accurate financial information and strategic advice to make informed decisions that drive profitability and growth.
The Importance of Knowing Your Numbers
One of the fundamental truths Connor stresses is that every business boils down to its numbers. Whether you’re a real estate agent, contractor, interior designer, or professional service provider, your business is essentially a set of processes that generate financial results. Yet, many entrepreneurs treat the financial side of their business as an afterthought — something only necessary for tax filing.
Connor explains, “One of the biggest mistakes we see is clients thinking the numbers side of the business is optional. Bookkeeping, financial reporting, and understanding your cash flow shouldn’t just be about compliance; it’s the core of your business strategy.”
Accurate bookkeeping is important because it allows you to track exactly what’s happening in your business and make decisions based on real data. Without precise financial records, it’s impossible to know if you’re profitable, where you’re losing money, or how to plan for growth.
Many businesses, especially those transitioning from solo operations to having employees and support staff, struggle with this mindset shift. They view bookkeeping as a chore instead of a strategic tool. Connor emphasizes that knowing your numbers is what drives every other aspect of your business — from tax savings to business forecasting and operational improvements.
Examples of Key Business Metrics
- Average Case Value: Understand the revenue generated per client or project.
- Lead Conversion Rates: Track how many inquiries lead to consultations, and how many consultations convert into paying clients.
- Project Profitability: For contractors and general contractors, knowing the gross margin per job is essential.
For instance, Connor shares an example relevant to general contractors: If your overhead costs are $10,000 per month, and you’re making only a 1% profit margin on jobs, you’d need to generate $1 million in revenue just to break even. Increasing your profit margin to 10% drastically reduces the revenue needed to cover overhead, making your business more sustainable and less stressful.
How Different Industries Approach Profitability
Profitability looks different depending on the industry. For professional services firms like Markoff & Malatesta, the key resource is manpower hours — the time their staff spends delivering services. Efficiency, automation, and maximizing billable hours are critical.
Contractors juggle people, materials, and project pricing to maintain healthy margins. Retail businesses focus on inventory turnover, product margin, and sales volume. Despite the differences, the theme remains consistent: cash inflow must exceed cash outflow over time or the business will fail.
Connor points out, “No matter the size of the business, cash in must exceed cash out over a period of time, or you go bankrupt. Amazon lost money for years but had investors to keep funding them. Every business needs to be profitable eventually.”
The Value of a Trusted CPA Firm
Having a capable CPA firm is indispensable. A good CPA does more than prepare tax returns; they help you understand your numbers, plan for taxes, improve business processes, and offer strategic advice. Choosing the wrong CPA can cost you money and create headaches.
Connor’s firm exemplifies this by acting as a one-stop resource for clients’ financial needs. They don’t just handle compliance; they help businesses grow by providing fractional CFO services, business coaching, and troubleshooting payroll and tax issues.
Additionally, Markoff & Malatesta focus on building a network of trusted professionals. Connor explains that when clients come to them with problems outside the firm’s expertise, they can refer them to vetted specialists across the country. This approach not only benefits clients but also strengthens the firm’s competitiveness.
Networking and Building Professional Relationships
Networking is important for any business professional. Beyond the numbers, connecting with other experts helps you build a referral network and access resources that can solve client problems more effectively. Connor shares how his firm leverages virtual connections to bring expert knowledge from different regions to clients in smaller or more rural areas.
For example, marketing experts based in North Carolina collaborate with local website designers in Michigan to share best practices and improve service offerings. This cross-pollination of ideas helps businesses in less competitive markets access high-level expertise they otherwise wouldn’t have.
Professional Licensing: Tips to Avoid Trouble
In addition to discussing business finances, Connor offers valuable advice for professionals seeking licensure, such as CPAs, lawyers, and licensed tradespeople. Based on his experience with licensing issues, he recommends the following:
Be Transparent: When applying for a license, always disclose your full history. If you’re unsure whether to share something, err on the side of caution. Hiding information can lead to denial and a heavy burden of proof to overturn decisions.
Document Everything: Keep thorough records of your professional interactions and activities. Good documentation can protect you in disputes or investigations.
Avoid Conflicts of Interest: A surprisingly common issue is professionals engaging in inappropriate relationships with clients. This kind of misconduct often leads to license revocation and career-ending consequences.
Regarding disciplinary actions, Connor notes that most CPAs who lose their licenses are involved in fraudulent activities or IRS violations. Otherwise, the profession generally maintains high ethical standards, and license revocations are rare.
Final Thoughts
Running a successful business requires more than just offering a great product or service. It demands a clear understanding of your financials, choosing the right professional partners, and maintaining ethical standards. Markoff & Malatesta CPAs, PLLC exemplify how a modern CPA firm can be an invaluable partner in this journey — offering not just compliance services but strategic business coaching, fractional CFO expertise, and access to a nationwide network of professionals.
Whether you’re a small business owner struggling to keep up with bookkeeping, a contractor aiming to improve project profitability, or a professional navigating licensure requirements, the lessons shared by Connor Malatesta are relevant and actionable:
- Know your numbers intimately — your business depends on it.
- Choose a CPA firm that offers more than tax prep — seek strategic partners.
- Build and leverage professional networks to provide comprehensive client support.
- Be transparent and ethical in your professional licensing journey.
By focusing on these fundamentals, you can safeguard your business’s financial health and professional reputation, ensuring long-term success.
For those interested in CPA or financial services, Markoff & Malatesta CPAs, PLLC offers a broad range of expertise and a client-centered approach that can help businesses across the country thrive. Here’s their website: https://markoff.cpa/.
*Nothing in this blog establishes an attorney-client relationship. Nothing in this blog is legal advice. If you have any questions, please check out our other blogs and our Youtube channel. You can also call us at 919-521-8810 with questions.