Ep #9: Clean Books, Higher Valuations with Thrine Harpring

Numbers don’t just tell your story—they price it. We sat down with bookkeeper and accounting veteran Thrine Harpering of Cover Your Accounts to unpack what actually moves a business valuation: clean books, credible cash flow, and a due diligence package that answers buyer questions before they’re asked. We get specific about who does what—bookkeepers keep the ledgers clean and GAAP-aligned, CPAs optimize tax and can provide assurance—and why having both on your side turns messy spreadsheets into a believable, bankable narrative.Across the conversation, we map the statements buyers trust most: income statement, balance sheet, and a cash flow statement that ties them together. We dig into how many years need to be spotless (two strong years minimum, three ideal), why margin drift matters even when revenue is flat, and how monthly reviews catch profit leaks early. Then we go beyond the P&L to the diligence checklist: AR aging, AP, debt schedules, tax returns, and the sleeper issue that kills deals—customer concentration. If any client tops 30 to 40 percent of revenue, contracts, retention plans, and thoughtful deal structures like earnouts or seller notes become essential.We also get frank about the fastest ways sellers destroy value: mixing personal and business spend without clean categorization, stacking too many “one-time” add-backs, and relying on owner-centric operations that scare off buyers. You’ll hear practical fixes—use a separate equity line for personal items, document every adjustment, delegate client relationships, and keep payroll airtight. We clarify cash vs accrual accounting, when percentage-of-completion applies, and why matching revenue and expenses is key to a believable EBITDA. The throughline is simple: consistent, verifiable cash beats stories and supports stronger multiples.If you’re preparing to sell or eyeing a purchase, this is your playbook for lowering risk and raising price. Subscribe, share with a founder who needs a clean-up, and leave a review to tell us the one metric you’ll tighten first.To learn more from Thrine visit https://www.coveryouraccounts.com/. Ready to explore your financing options? Visit horizonbrokers.com or call 703-910-7384 for personalized guidance on making your business acquisition dreams a reality.