CPA Junk Drawer: Lost, Found, Fixed

Prepare for the tears, this episode gets real, can’t talk about 9/11 and not cry, but then we get into a peak of how I became the accountant I am…a look at the past. This take your podcast to work special continues the tax season journey…Great teaching moments here! The CPA Junk Drawer, learn why you have to have this! Listen now!

In this powerful episode of What the Finance, Katrina Keller, CPA dives deep into the chaos of business finances, tackling intercompany transactions, misclassified entries, and the all-too-common mistakes business owners make when managing their books. She shares her personal journey, reflecting on 9/11, her early days in bookkeeping, and how those experiences shaped her forensic accounting skills today.

With a mix of humor, tough love, and practical financial wisdom, Katrina introduces the concept of the CPA Junk Drawer—a necessary dumping ground for uncertain transactions that need proper classification later. She warns against the dangers of ignoring financial records, misreporting transactions, and relying on unqualified bookkeepers who can cost businesses thousands.

This episode is packed with actionable advice, including why opening balance equity should never be a black hole for unexplained transactions, how off-balance sheet items affect business finances, and why every dollar in or out needs to be accounted for.

Key Takeaways:

• ​ Know Your Balance Sheet: It tells the story of your business—assets, liabilities, owner distributions, and financial health.
• ​ Beware of Opening Balance Equity: If you see a balance here, something went wrong. Investigate and reclassify.
• ​ Intercompany Transactions Are a Mess: Avoid treating your businesses like an ATM; sloppy record-keeping can lead to compliance issues.
• ​ Financial Records Matter: Business success depends on accurate numbers—mistakes cost real money and tax implications.
• ​ Use an ‘Exchange CPA’ Account: Instead of dumping transactions into the wrong accounts, create a placeholder for review by a professional.
• ​ Get a CPA, Not Just a Bookkeeper: Low-level bookkeeping mistakes can cost businesses thousands in lost deductions and IRS penalties.
• ​ Stay Focused & Keep Learning: Business success isn’t just about making money—it’s about managing it properly.

Don’t let bad bookkeeping drain your profits! Visit LearnWTF.com to get expert financial training, avoid common accounting mistakes, and ensure your business is on the right track.

Subscribe to What the Finance for more real-world financial insights from Katrina Keller, CPA, CFF, CFE, MST—because your business deserves better than guesswork!