Brett Boerman’s Insights on Efficient Small Business Bookkeeping

In this interview, we sit down with Brett Boerman, the owner & head bookkeeper of Digit Lime Bookkeeping, a company helping small businesses manage their finances.

Brett shares his journey, the challenges and triumphs of running a bookkeeping firm, and offers invaluable advice for entrepreneurs grappling with financial management.

Aimed at small business owners and budding entrepreneurs, this interview sheds light on the importance of accurate bookkeeping and strategic financial planning for business success.

Expect practical tips, industry insights, and a deep dive into the world of professional bookkeeping.

Origin Story

SBS – What inspired you to start Digit Lime Bookkeeping?

Brett – I could give you a spiel about my love for business finances or desire to help other entrepreneurs succeed, but, to be honest, this all started because I was miserable at my corporate financial analyst job. I wanted to create my hours, have no one tell me what my salary was, and have zero obligation to sit in on unproductive meetings. Starting a bookkeeping business gave me that freedom and was something I knew I could be good at.

Quality Assurance

SBS – How do you ensure the accuracy and timeliness of the bookkeeping services you offer?

Brett – We have very rigid systems in place. Each client has a detailed month-end checklist with documented steps, all of which have corresponding due dates to ensure timeliness. These steps are broken down into four main categories:

1. Data import: get the bank, credit card, POS data, etc, into the accounting software
2. Reconciliation: ensure the data in our accounting system matches the source data
3. Adjustments: making adjustments to account for things missed in the source data (for example, if a company makes a loan payment, it’ll show in the bank data, but what that misses is a portion should be put in interest expense while the rest is applied to the loan balance)
4. Final review: self-explanatory and the most important step

Common Challenges

SBS – What are the most common bookkeeping challenges you see small businesses facing?

Brett – Business owners are focused on operations and selling, so admin sometimes falls by the wayside. Also, they don’t want an employee handling their money. So, either 1) no one runs the books or 2) a spouse or retired uncle gets pulled into the mix (and they usually have no experience). This sometimes works for a bit, but as the business scales, it becomes too complex. They ask their CPA if they can run the books, but they usually don’t have the time. This is the hole in the market that Digit Lime covers.

Tax Time Strategies

SBS – How does your service help business owners prepare for tax season?

Brett – While we can’t take away all of the tax-time stress, we can make it much less painful. We keep businesses meticulously organized throughout the year, so when tax time rolls around, everything is accurate and ready to go.

Personalized Support

SBS – What kind of personalized support can clients expect from their dedicated bookkeeper?

Brett – One of my pet peeves is accountants, lawyers, doctors, etc., who are unable to translate their knowledge into layman’s terms. We use plain English 99% of the time so clients understand what’s going on. I can’t tell you how many times I’ve explained a concept to clients, only for them to respond, “Wow, that makes sense. No one has ever explained it that way before.”

Client Success Stories

SBS – Can you share a success story where your service significantly helped a client?

Brett – When I first started around six years ago, I had a client come to me whose bookkeeping was multiple years behind. They did the work themselves, messed it up, then hired 3–4 different bookkeepers to fix it. They all gave up once they saw how big of a mess it was. I accepted the challenge and had everything cleaned up and running within a month or two. Safe to say, they were pleased, and I still work with them today.

Tools of the Trade

SBS – What tools or software do you primarily use in your bookkeeping services?

Brett – Quickbooks Online, Google Sheets, Gmail, and a cell phone are 95% of it.

Staying Informed

SBS – How do you stay updated with the latest changes in tax laws and accounting standards?

Brett – There are many different ways. I’m certified by the National Association of Certified Public Bookkeepers (NACPB), subscribe to newsletters that track IRS changes, and have many CPA contacts who keep me informed.

Entrepreneurial Advice

SBS – What advice would you give to entrepreneurs who are struggling with bookkeeping?

Brett – Once you’re at $150K–$200K annual revenue, bookkeeping can become complex, so it’s a good idea to look at outsourcing to a professional. This frees up time and mental load, helps avoid legal issues, and allows them to focus on managing and scaling.

Educational Insights

SBS – How does your educational content on bookkeeping and financial management complement your services?

Brett – My goal is to:

1. Teach people a thing or two
2. Add some context and trust that I know what I’m talking about. I’m hoping to do a lot more of this because teaching is a passion of mine

Financial Metrics Mastery

SBS – What are the key financial metrics every small business owner should regularly monitor?

Brett – I’m so glad you asked this question! It can vary greatly depending on the size and type of company. If I had to only look at four metrics to determine the financial health of a business, those would be:

• Operating income: profit generated from the business’s operating activities
• Operating margin: operating income/sales
• Cash flow: operating income +/- cash from investing and financing activities
• Liquidity months: working capital/average monthly expenses (previous six months)

These four give insight into how much cash the business generates, if it’s healthy in comparison to sales, and lastly, how long the business could survive if cash flow dried up. If all four metrics are healthy, it’s tough to fail.

Industry Evolution

SBS – How has the bookkeeping industry evolved since you started, and where do you see it heading?

Brett – It’s changing rapidly. At some point, AI will take over most of the traditional bookkeeping work, which I’m excited about. Innovation means new opportunities. For example, even though bookkeeping will be more automated, this also means the underlying systems are more complex. The average business owner will hire someone to put those systems in place and audit them quarterly, annually, etc. We’ll be in more of an analyst/consulting role at that point.

Vision for the Future

SBS – What are your future plans for Digit Lime Bookkeeping?

Brett – There’s a lot of exciting stuff in the works. In the future, we’ll be a full-service finance company with CFO services, tax planning, tax filing, and much more. I’m also a huge proponent of real-time insights, so I’m working on automated solutions that’ll show business owners an estimate of their finances on a daily basis.