Lee Davis & Company

10/22/2026

Do you know where your business’s money is going?

In Episode 18 of QuickBooks Mastery for Small Business Success, Lee Davis and Erica Northrup discuss five financial numbers every business owner should know.

📊 The 5 Numbers You Need to Know

1️⃣ Revenue
Are you capturing all the revenue your business is earning?
One place businesses often lose revenue is through invoicing. If invoices aren't being sent promptly or collected consistently, money can be left on the table.

2️⃣ Net Sales
Net sales help you understand what you're actually bringing in after considering the costs associated with generating those sales.
Employee costs are an important factor. You need timely invoicing and a clear understanding of your margins to know whether your sales are supporting the business.

3️⃣ Net Profit
Revenue doesn't tell the whole story.
Your profit needs to be enough to support the business. And don't overlook indirect expenses, such as depreciation, when evaluating your financial picture.

4️⃣ Debt-to-Income Ratio
Your debt-to-income ratio compares your total monthly debt payments to your income.
Banks often look for a debt-to-income ratio around 35%, but the bigger question for a business owner is: What is your debt telling you about the health of your business?
If too much of your cash flow is going toward debt, it may be a warning sign.
And remember: the time to establish a line of credit is when you don't need one.

5️⃣ Owner Pay
Owner pay can look different depending on how your business is structured.
For example, an LLC may generally use an owner draw, while an S Corporation generally pays the owner through payroll.
Business expenses that benefit the owner can also complicate the picture, so it's important to understand how owner pay is being accounted for.

https://quickbooks-mastery.captivate.fm/episodes/6

Father-daughter team helping small businesses streamline QuickBooks and grow with confidence.

10/15/2026

What Happens When Your Profit & Loss Is Wrong?

In Episode 17 of QuickBooks Mastery for Small Business Success, Lee Davis and Erica Northrup discuss some of the common reasons a Profit & Loss statement can be inaccurate—and why getting it right matters.

📊 Why Might Your P&L Be Wrong?

1️⃣ The wrong person sets it up
Your Profit & Loss and Chart of Accounts need to be set up correctly from the beginning. Choosing someone who understands your business and QuickBooks is important.

2️⃣ There are too many accounts
An improperly structured Chart of Accounts can make your financial reports confusing and inaccurate.

3️⃣ Products and services aren't set up correctly
Income should be categorized appropriately as sales rather than accidentally being recorded as an expense.

4️⃣ Transactions are entered more than once
This is a common issue with the bank feed. For example, someone may enter a bill manually and then enter the same transaction again through the bank feed. The result is duplicated information.

5️⃣ The wrong accounting basis is being used
Sometimes a business needs to look at its Profit & Loss on an accrual basis rather than a cash basis.

6️⃣ Too much reliance on someone else
If you depend entirely on another person to enter your financial data without understanding what's being entered, mistakes can go unnoticed.

https://quickbooks-mastery.captivate.fm/episodes/6

Father-daughter team helping small businesses streamline QuickBooks and grow with confidence.

10/08/2026

Can You Trust Your QuickBooks Financial Reports?

Your financial reports are only valuable if you trust the numbers behind them.

In Episode 16 of QuickBooks Mastery for Small Business Success, Lee Davis and Erica Northrup discuss why many business owners struggle to trust their financial reports—and how that uncertainty can affect business decisions.

📊 Trust Your Numbers. Take Ownership.
When your books are accurate and you understand your financial reports, you can begin to develop an ownership mentality.
You’re no longer afraid of your numbers. Instead, you can use them to:

✅ Make informed business decisions
✅ Understand your company’s financial position
✅ Prepare for loans and other financial needs
✅ Evaluate business performance
✅ Feel more confident and in control

Trusting your books can also bring a sense of calm. Rather than avoiding your financial reports, you can use them as a tool to help guide your business.

🎓 Training Can Make a Difference

You don’t have to figure everything out on your own.

Lee Davis and Company’s training program is designed to help business owners better understand QuickBooks and feel confident using their financial reports.

You deserve to know what your numbers mean—and how they can help you lead your company.

Stop running your business on guesses. Start building confidence in your financial reports.

📩 Connect with Lee Davis and Company to learn how training can help you take control of your books.

https://quickbooks-mastery.captivate.fm/episodes/6

Father-daughter team helping small businesses streamline QuickBooks and grow with confidence.

10/01/2026

Is “good enough” really good enough for your QuickBooks?

Sometimes your QuickBooks doesn't have obvious problems. There are no major red flags, everything seems to be working, and you can get by.

But “getting by” may be costing your business.

In Episode 15 of QuickBooks Mastery for Small Business Success, Erica Northrup and I discuss the hidden problems with settling for “good enough” QuickBooks.

When your books aren't completely accurate or you're not fully using the tools available, you could be:

💰 Missing potential tax deductions

⏰ Spending more time than necessary on bookkeeping

📊 Missing important information about where your money is going

💵 Making it harder to collect what you're owed

📈 Missing opportunities to improve pricing and profitability

That's the difference between having QuickBooks and actually using QuickBooks to run your business.

The right tools can help you:

✔️ Understand where your money is going

✔️ Track sales and products

✔️ Evaluate your pricing

✔️ Improve how and when you get paid

✔️ Make decisions based on reliable numbers

https://quickbooks-mastery.captivate.fm/episodes/6

Father-daughter team helping small businesses streamline QuickBooks and grow with confidence.

09/17/2026

Why does QuickBooks get so messy?

If you've ever opened your QuickBooks file and thought, "Where do I even start?"—you're not alone.

In Episode 14 of QuickBooks Mastery for Small Business Success, Erica Northrup and Lee Davis talk about why QuickBooks can become overwhelming and what business owners can do to get back on track.

When clients come to Lee Davis & Company, they're often frustrated because their QuickBooks has gotten out of control.
But the problem usually isn't QuickBooks itself.
It's not knowing how to use it.

Some of the biggest reasons QuickBooks gets messy include:

🔹 It wasn't set up correctly from the beginning.

🔹 Business owners don't know how to use forms and lists.

🔹 They rely too heavily on bank downloads.

🔹 They try to solve everything with Google.

The good news?

You can fix the mess.

That's what Lee Davis & Company is here to help businesses do.
Don't let your QuickBooks become another source of frustration.

https://quickbooks-mastery.captivate.fm/episodes/6

Father-daughter team helping small businesses streamline QuickBooks and grow with confidence.

09/10/2026

Are QuickBooks mistakes costing your business money?

In Episode 13 of QuickBooks Mastery for Small Business Success, Erica Northrup and Lee Davis tackle some of the most common QuickBooks mistakes they see—and explain why getting the details right matters.

Here are some of the biggest mistakes they discussed:

1️⃣ Waiting too long to reconcile

2️⃣ Misusing "Ask My Accountant" or Uncategorized Accounts

3️⃣ Using the Bank Feed incorrectly

4️⃣ Misusing Undeposited Funds

The big takeaway from Episode 13?

Don't wait for a problem to tell you something is wrong with your books.

Be proactive.

Reconcile regularly. Categorize correctly. Review your reports. And when you're unsure, get help before a small mistake becomes a big one.

https://quickbooks-mastery.captivate.fm/episodes/6

Father-daughter team helping small businesses streamline QuickBooks and grow with confidence.

09/03/2026

QuickBooks training: Is it really necessary?

In Episode 12 of QuickBooks Mastery for Small Business Success, Erica Northrup and Lee Davis tackle an important question for small business owners:

Should you be trained in QuickBooks?

With the right training, you can:

✔️ Save money in the long run
✔️ Reduce frustration
✔️ Understand what your financial reports are telling you
✔️ Keep cleaner books
✔️ Use QuickBooks as a tool to help steer your business

So what does good QuickBooks training look like?

Lee and Erica believe it should be hands-on and practical. Their training uses QuickBooks' test company, Craig's Design and Landscaping, so business owners can learn by actually working through transactions and processes.

Good training should also:

📌 Focus on what you actually need to know
📌 Give you an opportunity to ask questions
📌 Recognize that everyone learns differently
📌 Help you get things right the first time

https://quickbooks-mastery.captivate.fm/episodes/6

Father-daughter team helping small businesses streamline QuickBooks and grow with confidence.

08/20/2026

Tax season doesn't have to be stressful—if you prepare throughout the year.

In Episode 11 of QuickBooks Mastery for Small Business Success, Erica Northrup and Lee Davis share practical steps business owners can take to make tax season smoother, faster, and less overwhelming.

The biggest takeaway? Preparation pays off.

When your financial records are organized, you can:

✔️ Reduce stress
✔️ Help your accountant work more efficiently
✔️ Avoid missing valuable tax deductions
✔️ Improve your overall tax planning

Here is the tax season checklist they recommend:

✅ Keep personal and business expenses separate.
✅ Eliminate uncategorized transactions.
✅ Scan and attach receipts and bills to QuickBooks.
✅ Gather payroll summaries and loan statements.
✅ Export your financial reports.
✅ Review outstanding invoices and unpaid bills.
✅ Document major business purchases.
✅ Track mileage and business-related expenses.
✅ Make sure your accountant has all of your personal tax documents, including W-2s, 1099s, and other sources of income.

https://quickbooks-mastery.captivate.fm/episodes/6

Father-daughter team helping small businesses streamline QuickBooks and grow with confidence.

08/13/2026

Which QuickBooks version is right for your business?

Choosing the right QuickBooks product can save you money, improve efficiency, and ensure you have the tools your business actually needs.

In Episode 10 of QuickBooks Mastery for Small Business Success, Erica Northrup and Lee Davis break down the different QuickBooks products and explain how to choose the best fit for your business.

One of the first questions they address is:

Should I choose QuickBooks Desktop or QuickBooks Online?

Their recommendation is simple:

💻 QuickBooks Desktop is best suited for large enterprises or organizations with complex needs.

☁️ QuickBooks Online is the better choice for most small and growing businesses, offering flexibility, cloud access, and easy integrations.

They also walk through the different QuickBooks Online plans:

🧾 Sole Proprietor
Ideal for solo entrepreneurs with no employees who need basic bookkeeping and Schedule C tax reporting.

📊 Simple Start
A step up from Sole Proprietor, offering additional reports and features for small businesses.

📨 Essentials
Perfect for businesses that regularly send invoices and need more robust accounting features.

📍 Plus
Supports up to five users and includes features like class and location tracking, limited inventory management, and additional built-in reports.

📈 Advanced
Designed for growing businesses with up to 25 users. It includes advanced analytics, workflow approvals, and more sophisticated reporting capabilities.

https://quickbooks-mastery.captivate.fm/episodes/6

Father-daughter team helping small businesses streamline QuickBooks and grow with confidence.

08/06/2026

How should you pay yourself as a business owner?

It's one of the most common questions entrepreneurs ask—and the answer isn't always straightforward.

In Episode 9 of QuickBooks Mastery for Small Business Success, Erica Northrup and Lee Davis discuss the different ways business owners can pay themselves and why choosing the right method can have significant tax and financial implications.

Before deciding how much to pay yourself, start by asking two important questions:

💰 What does my business need to operate successfully?
💰 What do I need personally to meet my financial obligations?

Your business should support both—but finding the right balance is key.

Lee and Erica explain three common ways owners receive compensation:

✔️ Owner's Draw
Typically used by LLC owners, this method allows you to take money from the profits remaining after business expenses. Keep in mind that there are important tax considerations.

✔️ Salary
Many S Corporation owners pay themselves a salary through payroll. This can be the appropriate option depending on your business structure and tax situation.

✔️ Distributions or Dividends
Some owners receive distributions in addition to—or instead of—a salary, depending on how their business is structured and how they earn income.

As a general guideline shared in the episode:
• Businesses with $200,000–$300,000 in revenue are often structured as LLCs, with owners taking draws.

• Businesses generating $1–2 million may benefit from an S Corporation structure, where paying a salary often makes sense.

Every business is different, so it's important to work with your accountant to determine what is best for your situation.

QuickBooks can also help inform these decisions. Reviewing your Profit & Loss Statement gives you a clearer picture of what your business can realistically support.

https://quickbooks-mastery.captivate.fm/episodes/6