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Understanding Commissions in Your New Small Business

When you’re buying or starting a small business, there’s a lot to think about! From staffing and systems to customer relationships and finances, many things will need your attention. One area that’s often overlooked but can have a significant impact on your bottom line is commissions. Understanding how small business commissions work is essential to ensure you’re not caught off guard by unexpected expenses or unbalanced compensation structures.

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Post-Acquisition Integration: Your 100 Day Plan

Acquiring a business is just the beginning. The real challenge starts the moment the deal closes.

Without a strategic plan, new owners often hit what’s known as the J-curve: a dip in performance, cash flow, and operational stability before things start to improve. This period is critical, and how you handle it can define the long-term success of your new venture.

To thrive through this transition, you need to focus on three pillars: cash flow management, risk mitigation, and accounting system upgrades.

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Machine to Money: What to Know Before Buying a Vending Machine Business

The Allure of the Vending Machine Business
The idea of buying a vending machine business is appealing for one main reason: passive income. With relatively low startup costs and minimal staffing requirements, vending machines look like the perfect business opportunity, especially in an era obsessed with side hustles and financial freedom.
But while this industry does have potential, it’s not as passive or easy as it may seem.

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Customer Concentration Risk: Lessons from a Failed Acquisition

When buying a small business, financial red flags aren’t always obvious. Though commonly overlooked, customer concentration risk is one of the most dangerous red flags. We recently worked on a deal where the seller claimed their largest customer only accounted for 20% of revenue. But after a deeper dive in the quality of earnings (QoE) process, we uncovered that the real figure was over 60%. That discovery ultimately killed the deal.

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Cash vs. Accrual: The Importance of Revenue Recognition

When it comes to accounting methods, cash basis accounting is often favored by small business owners for its simplicity. Under this approach, revenue is only recognized when cash is received, and expenses are recorded when cash is actually paid. While easy to manage, this method can distort the financial picture by failing to align revenue and expenses with the periods they relate to, resulting in inconsistent, “lumpy” financials.

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Business owner meeting with an accountant across a desk covered with financial paperwork and a calculator

What Determines Your Accounting Quote at Midwest CPA?

Starting or running a small business means balancing growth, cash flow, and operational priorities. One key partner in that journey is your accountant or CPA. 

Perhaps you’re just looking into your small business accounting options, or maybe you’ve already decided to check out our pricing guide to compare it with other options out there, and want to know why different firms charge so differently.

In this post, we’ll walk you through how Midwest CPA determines pricing for monthly accounting services. You’ll learn what drives the costs, what’s included in each of our service tiers, and why our fixed‑fee model offers clarity and consistency for business owners.

What Determines Your Accounting Quote at Midwest CPA? Read More »

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Under LOI? Here’s When Walking Away Is the Smart Move

Signing a Letter of Intent (LOI) is a big step in acquiring a business. It signals serious intent, begins due diligence, and often involves commitments of time, effort, and money. But being under LOI does not guarantee you should go all the way to closing. Sometimes walking away is the smartest decision you can make. In this article, you’ll discover three critical reasons to walk away before closing so you can avoid buying the wrong company and instead, invest in the right one.

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Computer monitors showing financial dashboards with bar and donut charts

What Factors Influence the Cost of a Quality of Earnings Report?

If you’re preparing for a business acquisition, you’ve likely heard that a Quality of Earnings (QoE) report is a must-have in your due diligence toolbox. But how much does it cost, and what exactly determines that price tag?

The cost of a QoE report can vary widely,

What Factors Influence the Cost of a Quality of Earnings Report? Read More »

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Buying a Business While Working Full Time: A Practical Guide

One of the most common questions aspiring entrepreneurs ask is: “Can I realistically buy a business while working full time?” The short answer is yes, you absolutely can.

This path is becoming increasingly popular, especially among professionals who want to transition into entrepreneurship without taking on the immediate financial risks of leaving a stable paycheck. By keeping your job, you maintain financial security, reduce stress around funding, and give yourself more time to evaluate deals carefully. At the same time, this approach comes with challenges, since the search process is time-intensive, brokers may question your seriousness, and juggling responsibilities requires discipline and structure.

The good news is that with the right strategy, strong time management, and a clear acquisition plan, it’s possible to make real progress toward ownership even when your schedule feels packed. In this guide, we’ll explore why buying a business while working full time can work, the trade-offs compared to full-time searching, and the practical steps you can take to make it happen. By the end, you’ll have a roadmap for approaching your search with confidence, credibility, and clarity.

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Front-loading washing machine with its door open and laundry inside

Is a Laundromat Truly Passive Income? A Balanced Look

Passive income is generally defined as earnings that require little to no ongoing effort to maintain. According to the IRS, it includes money generated from rental activities or businesses in which the taxpayer does not materially participate. In everyday business terms, it’s often described as “making money while you sleep.”

But laundromats don’t neatly fit into this definition. While they can generate steady revenue without constant daily oversight, they still require time, decision-making, and management. For this reason, they’re better categorized as a form of semi-passive income. You may not be running them full-time, but they aren’t entirely hands-off either.

Is a Laundromat Truly Passive Income? A Balanced Look Read More »

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