EPISODE: 216 – Could You Be Ready for a Fractional CFO? with Eric Joern
Too many shop owners start their businesses because they’re great at fixing cars, not because they’re accountants, tax experts, or financial strategists. Unfortunately, that’s where a lot of costly mistakes begin.
Brian sits down with Eric Joern of Kaizen CPAs for an honest conversation about the financial side of running an auto repair shop. From common bookkeeping mistakes and tax planning myths to the real difference between a bookkeeper, CPA, and fractional CFO, this episode is packed with practical advice that can help you build a stronger, more profitable business. Brian also shares lessons from his own entrepreneurial journey, including the financial mistakes that ultimately shaped the way he runs his business today.
If you’re ready to understand your numbers, make better business decisions, and build a shop that’s financially healthy for the long haul, you won’t want to miss this conversation. Listen now wherever you get your podcasts.
Timestamps
Introduction to Eric Joern and Kaizen CPAs (00:00:54) Eric Joern introduces himself and his firm, Kaizen CPAs, which specializes in accounting and tax strategy for auto repair shops.
Eric’s Journey into Automotive Accounting (00:01:47) Eric shares his background, starting as a porter at a Toyota dealership and eventually becoming a CPA focused on auto shops.
The Host’s Early Financial Mistakes (00:03:45) Host Brian Walker shares stories about his early business struggles, including planning expenses on a post-it note and mismanaging sales tax.
The Need for Business Education (00:07:13) Discussion on the lack of guidance for new business owners and the importance of not trying to do everything yourself.
The Cost of Not Hiring Professionals (00:09:40) Brian shares a story about his father, highlighting how avoiding professional help like a CPA can limit a business’s potential.
Two Paths for New Shop Owners (00:11:50) A comparison between technicians who start a business versus entrepreneurs with a business plan, highlighting the difference in their trajectories.
The Importance of a Vision (00:14:28) The speakers emphasize how having a clear, intentional vision and a plan is crucial for achieving business success.
Bookkeeper vs. CPA (00:15:06) A breakdown of the different roles, explaining that bookkeepers manage daily transactions while CPAs handle financial normalization and tax strategy.
The Danger of Year-End Spending (00:19:42) Brian shares a cautionary tale about making a large, financed equipment purchase to avoid taxes, which led to financial disaster.
The Value of Paying Taxes (00:22:13) Discussion on why paying taxes is a sign of a healthy, profitable business and the importance of cash discipline.
Profit is a Responsibility (00:24:54) The hosts discuss how running a profitable business is a responsibility to your clients, employees, and family.
Introducing the Fractional CFO (00:26:18) Brian explains how hiring a fractional CFO transformed his business by providing budgeting, forecasting, and strategic financial decision-making.
The Role of a Fractional CFO (00:28:22) Eric defines the fractional CFO’s role, focusing on annual forecasting, budget accountability, and turning financial data into actionable goals.
A Budget Means Freedom (00:31:57) The hosts reframe the concept of a budget not as a restriction, but as a tool that provides freedom and prevents mistakes.
Predictability Creates an Asset (00:36:44) Discussion on how being proactive and intentional with finances makes a business predictable and therefore a more valuable asset.
The Risk of Expanding Without a Plan (00:37:13) The speakers warn against acquiring a second shop without fully understanding the financials of the first one.
The Path to Hiring Financial Professionals (00:40:58) A discussion on when a shop owner should progress from handling books themselves to hiring a CPA and then a fractional CFO.
The “Two Shops is Hard” Rule (00:43:43) The hosts discuss the common wisdom that growing from one to two shops is difficult, but three becomes easier.
How to Connect with Eric Joern (00:45:55) Eric shares the best ways to find him and his firm, including their website, YouTube channel, and new podcast.
How To Get In Touch
Join The Auto Repair Marketing Mastermind Group on Facebook
Meet The Pros
Follow SMP on Facebook
Follow SMP on Instagram
Get The Ultimate Guide to Auto Repair Shop Marketing Book
Email Us Podcast Questions or Topics
Lagniappe (Books, Links, Other Podcasts, etc)
The E-Myth Revisited by Michael E. Gerber
Profit First by Mike Michalowicz
Kaizen CPAs
