Table of Contents
1. Here’s a glimpse of what you’ll learn:
2. In this episode…
3. Resources Mentioned in this episode
4. Sponsor for this episode…
Nancy McClelland

Nancy McClellandNancy McClelland is the Owner of The Dancing Accountant, a firm specializing in bookkeeping, tax preparation, accounting, and advisory services for small businesses. With over 30 years of experience, she helps businesses streamline financial processes, improve compliance, and adopt best practices. Nancy also educates bookkeepers through her Ask a CPA membership community and writes an award-winning blog at TheDancingAccountant.com. She has been recognized as a Top Client Services ProAdvisor and one of Ignition’s Top 50 Women in Accounting.


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Here’s a glimpse of what you’ll learn:

  • [5:35] Nancy McClelland explains what kind of accountant she is and how her background shaped her approach
  • [10:14] What tax-ready books mean and why they are essential for small businesses
  • [17:47] How negative balances signal missing expenses and impact taxable income
  • [21:26] Common misconceptions about CPAs and bookkeepers handling everything
  • [25:32] Key differences between bookkeepers and tax accountants
  • [29:13] How miscommunication leads to duplicated work and increased costs
  • [36:22] The top reason business owners switch CPAs and why communication matters
  • [41:20] Why quarterly tax planning prevents surprises and improves cash flow
  • [47:09] The risks of low W-2 wages for S Corp owners and how to avoid red flags
  • [51:08] Top tech tools for streamlining bookkeeping and tax preparation
  • [56:49] How keeping organized records can lower tax prep costs and improve accuracy

In this episode…

Managing your business finances can feel overwhelming — especially when your bookkeeper and tax accountant seem to operate in completely separate worlds. Without clear communication between them, mistakes happen, deadlines get missed, and tax season turns into a stressful scramble. So how can you ensure these key financial professionals are working together to support your business success?

According to Nancy McClelland, a nationally recognized CPA and financial educator, alignment starts with clear roles, regular communication, and a shared commitment to accuracy. She highlights that many business owners assume hiring both professionals means everything is handled, but in reality, lack of coordination leads to costly errors and duplicated work. By fostering a team mindset, setting clear expectations, and ensuring that financial records are tax-ready year-round, small businesses can avoid last-minute panic and make better financial decisions. Nancy also emphasizes that technology can bridge communication gaps, making it easier for bookkeepers and tax accountants to collaborate effectively.

In this episode of the Financial Clarity podcast, host Hannah Smolinski sits down with Nancy McClelland, Owner of The Dancing Accountant, to discuss how business owners can align their bookkeeper and tax accountant for financial success. They break down the importance of defining responsibilities, creating an accountability chart, and scheduling regular check-ins. Nancy also gives practical advice on leveraging technology to streamline bookkeeping and tax preparation.

Resources Mentioned in this episode

Related Episodes

Quotable Moments

  • “Tax season is a terrible, terrible time of year to look at messy books and decide we’re going to clean up a year’s worth of stuff.”
  • “Doing this throughout the course of the year doesn’t just lead to more accurate books; it leads to less expensive books.”
  • “The goal for the accounting function is ideally getting to the point where you’re using the financials to make real-time business decisions.”
  • “It is really important for us all to remember that business owners, they don’t know what they don’t know.”
  • “If you’re not on a monthly basis getting tied out finances that make sense and are clean, this should be keeping small business owners up at night.”

Action Steps

  1. Understand the roles of your financial team: It is crucial to be aware of what responsibilities your bookkeeper, tax accountant, and financial advisor each hold. This understanding helps ensure no tasks fall through the cracks and prevents you from paying for duplicate services.
  2. Establish regular communication: Set up quarterly or at least annual meetings with your financial team to discuss your financial status and upcoming plans. Regular communication helps to catch any discrepancies early and ensures everyone is aligned with your business goals.
  3. Organize financial documents: Work with your team to ensure all financial documents are stored in an accessible and organized manner. This organization reduces stress and time spent searching for documents when they are needed for decision-making or compliance.
  4. Promote collaboration among your team: Encourage open communication and collaboration between your bookkeeper, tax accountant, and financial advisor. This creates a team mentality that can lead to more efficient processes and better financial outcomes for your business.
  5. Be transparent about business changes: Update your financial team regularly about any significant changes in your business, such as new revenue streams or loans. Transparency ensures your financial records accurately reflect your business situation and allows your team to provide the best possible advice.

Clara CFO is dedicated to providing financial clarity and profit-maximizing solutions to small businesses. The team at Clara CFO are seasoned accounting professionals with a heart for small business. We help growth-minded entrepreneurs thrive through Fractional CFO services and financial education.

Whether you’re grappling with hiring decisions, profit margin concerns, or ambitious growth plans, Clara CFO provides insights, recommendations, and a clear financial roadmap to achieve your goals.

To learn more about Clara CFO Group and how we can help your business, visit ClaraCFO.com.