Living Your Legacy

Host: Rudy Mawer
Episode: The Secrets of a Chief Financial Officer
Date: September 25, 2025
Guest: Michelle Lee, CEO of Super Accountants

Episode Overview

This episode dives into the financial realities facing entrepreneurs, featuring seasoned CFO Michelle Lee. With more than 30 years in financial leadership, Michelle brings clarity to accounting, demystifies budgeting, and offers tactical advice for building a sound business foundation. The conversation addresses common financial missteps, practical tips for categorization and write-offs, and the importance of proactive planning—all while making accounting accessible and (surprisingly) engaging.
Listeners will gain actionable insights on hiring experts, systemizing their finances, optimizing deductions, and planning for future growth and legacy.

Key Discussion Points & Insights

1. The Value of Hiring Financial Experts

• [00:04, 04:24] Michelle stresses that, while it's understandable for entrepreneurs to DIY in the early days, finances are best left to professionals as soon as feasible.

• Having proper categorization and regular financial oversight tells the "story" of a business and allows for better decision-making.

  Michelle: "Finances is an area that you really do need to have someone who knows what they're doing ..." [04:24]

2. Accounting as Storytelling

• [04:24] Michelle likens accounting to uncovering a mystery or solving a puzzle, revealing the narrative behind the numbers.

  Michelle: "Accounting is really about a puzzle and a mystery. ... If you can really start to see the puzzle and see the mystery in it, then you can start to tell the story of the business and you see the art and the beauty in it." [04:24]

3. Proactive vs. Reactive Systems

• [03:38, 05:57] Being hands-on all year, rather than just at tax time, results in cleaner books, less stress, and potentially lower costs.

• Systems like monthly reviews and ongoing categorization keep the business owner in control, not scrambling to react.

  Rudy: "The tax return is super easy if everything else has been done right in the year. ... So you’re really doing 95% of it." [05:57]

4. Cost Savings & Proper Categorization

• [06:54] Michelle explains that using a specialized accountant year-round can save money compared to paying a CPA firm to clean up at the end of the tax year, and also optimizes tax deductions.

  Michelle: “There’s a quote ... ‘You think that I cost a lot, then just wait till you see how much an amateur costs you.’” [07:50]

• Correctly categorizing and writing off eligible expenses means your accountant should save you more money than they cost.

5. Critical Practical Mistakes Entrepreneurs Make

• Employee Classification (1099 vs W2):
  [08:47-10:41]
  Many misclassify employees to save costs, but this exposes the business to hefty IRS penalties and even litigation.

  Michelle: "That's a risky area that I see a lot of businesses volunteer." [09:44]

• Wrong Write-Offs:
  [11:16-12:25]
  Entrepreneurs often try to write off personal expenses as business ones (e.g., clothing, personal credit cards). This puts them at significant audit risk.

  Michelle: "A lot of people writing off a lot of personal expenses ... But at the same time, you don't want to be getting into a situation where ... that catches you in the end." [11:16]

  Rudy: “If they do get this wrong and ever get audited, they pay about 30% more as a fine.” [12:25]

• Missed Deductions:
  [12:34-13:27]
  Some allowable write-offs are overlooked, notably home office deductions, meals, travel, and the “Augusta Rule” (renting your home to your business up to 14 days/year).

  Michelle: "The home office is a good one, especially if the business owner has an office but then also does a significant amount of their work from their home." [12:36]

6. Forward Planning and Financial Vision

• [14:12-15:33]
  Michelle outlines a proactive planning system:

  • 90-day cash flow projection: Understanding short-term needs and inflows
  • 12-month rolling budget: Keeps planning one year ahead at all times
  • 5-year forecast: More general, helps chart the business trajectory

  Michelle: “Taking the time to think about what am I wanting to do over the next 12 months, what do I see opportunities that I could take advantage of and how's that going to impact my business?” [14:41]

7. Choosing the Right Business Structure

• [15:33-16:38]
  Michelle and Rudy break down the differences between LLC, S Corp, and C Corp, and the potential costs of choosing wrongly.

  • Default path for most entrepreneurs:
    • Start as LLC
    • Switch to S Corp when growing/team-building
    • C Corp only for large-scale, multi-entity or capital-raising businesses

  Michelle: “I like S Corps the most ... that would be where a majority of small entrepreneurial businesses end up landing.” [16:08]

8. Getting Help: Cleaning Up Messy Books

• [16:39-18:56]
  Michelle encourages business owners who are overwhelmed or disorganized not to delay. Super Accountants can come in mid-year, do “rescue” clean-ups, and work efficiently if the owner pre-organizes their info.

  Michelle: "So knowing some of those things is really, really helpful. ... It's probably less costly for you to organize it than us trying to find on your OneDrive ... where you've got all these details." [17:44]

9. Risks of DIY Accounting & QuickBooks

• [17:44-19:46]
  QuickBooks is a solid choice for small businesses, but DIY users often miscategorize items or ignore automation, limiting its effectiveness and leading to audit risk.

  Michelle: “Once you grow, the time you spend trying to do your books takes away from what you primarily need to be focusing on. So hire someone else to do that.” [18:56]

  Michelle: “If you are using QuickBooks, it’s a great software ... It’s just a matter of being able to then give us access for a short period of time...” [18:56]

Notable Quotes & Memorable Moments

• “You think that I cost a lot, then just wait till you see how much an amateur costs you.”
  — Michelle Lee [07:50]

• “Accounting is really about a puzzle and a mystery … you see the art and the beauty in it.”
  — Michelle Lee [04:24]

• “The tax return is super easy if everything else has been done right in the year. ... So you’re really doing 95% of it.”
  — Rudy Mawer [05:57]

• “I always say for accountants, doctors and attorneys, that rule is true for all three of those things. You don’t want a cheap doctor or attorney or accountant.”
  — Rudy Mawer [08:04]

• “It’s not that hard or scary to shift them [1099 to W2] ... you might need to HR person for a few hours ... but it’s not that big a deal to, to shift them.”
  — Rudy Mawer [10:21]

Timestamps for Major Segments

• 01:01: Introduction of practical tips for entrepreneurs
• 04:24: The case for hiring a financial expert & the "story" of accounting
• 05:57: Year-round accounting benefits versus tax-season-only approach
• 07:50: The real cost of not hiring an expert
• 08:47: Misclassification: 1099 vs W2
• 11:16: Commonly miscategorized expenses & audit risks
• 12:34: Overlooked deductions (home office, travel, Augusta Rule)
• 14:12: Short- and long-range budgeting techniques
• 15:33: LLC vs S Corp vs C Corp — structuring your business
• 16:39: How to get help with messy books
• 17:44: Risks and benefits of using QuickBooks

About Michelle Lee & Super Accountants

• All-women-owned and operated firm, dedicated to client education and legacy building

• Actively trains team members in financial skills, with a vision of empowering staff (and clients) for independence and stability

• Focuses on honesty and integrity in financial partnerships

• Legacy is both internal (family/firm succession) and external (educating clients and broader community)

  Michelle: “One of the things that we really value is the importance of education and the importance of leaving a legacy and teaching something to other people.” [20:19]

Where to Find Super Accountants

• superaccountants.com
• Facebook, Instagram, LinkedIn

Final Thoughts

This episode energetically makes the case for seeing accounting as an empowering tool, not a bureaucratic burden. Michelle Lee delivers not just tactical strategies, but a broader vision of financial stewardship as key to legacy building.
Entrepreneurs are urged to get proactive, seek help, and “tell the story of their business” through their numbers—one clean ledger at a time.