Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast You’re Growing Fast… So Why Are You Still Broke?
Dec 4, 2025
Patrick Dichter, owner of AppleTree Business Services and a specialist in outsourced accounting for home service companies, joins John Wilson to shed light on crucial accounting practices. They discuss the stages of bookkeeping, from 'Checkbook Charlie' to in-house controllers, emphasizing the importance of clean month-end closes for informed decision-making. As growth consumes cash, they explore common pitfalls like accrual issues and bad accounting integrations. Patrick offers practical cash forecasting techniques to navigate financial complexity, making this a must-listen for anyone feeling financially lost in their business.
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Delayed Clean Close Cost A Decade
- John Wilson didn't get a clean month-end close until last August after years running the business without reliable books.
- That decade of fuzzy accounting made decision-making harder and delayed growth clarity.
Accounting Matures In Predictable Stages
- Accounting evolves in stages from 'Checkbook Charlie' to outsourced bookkeeping to in-house controllers as revenue grows.
- Each stage brings different blind spots: P&L directionally OK but balance sheet and accruals often broken.
Accruals And WIP Can Mask Profitability
- Bad accrual management and weak month-end work-in-process can hide large swings in profitability.
- Fixing WIP and accruals added about $200k of recognized revenue for John’s business.
