For many founders and CEOs, tax season is the first time they take a hard look at their financials. The assumption is if the tax return gets filed, everything must be fine.
But as Bayaan Oluyadi, CPA and founder of KTB Services, explains on Cypher’s Founder Files podcast, outcomes when closing out the year are shaped long before a tax advisor ever touches the return. The quality of your tax outcome depends on the financial context behind the numbers.
This is where many growing companies get stuck.
What a Tax Advisor Actually Brings to the Table
A tax advisor plays a critical role for growing businesses. Their work typically includes:
- Tax compliance and filing
- Year-round tax planning and optimization
- Entity structure guidance (LLC, S-Corp, C-Corp)
- Owner compensation strategy and elections
- Sales tax and nexus considerations
- R&D credits and QSBS planning
This work is essential. But it relies entirely on one thing: accurate, reliable financial data.
As Bayaan puts it, “Garbage in, garbage out.”
If the books are incomplete, inconsistent, or late, even the best tax advisor is limited in what they can do.
Why Problems Surface At Year-Close
One point comes up repeatedly with growing companies:
“The biggest tax savings are proper books.”
Not creative write-offs. Not last-minute strategies. Proper books.
In practice, proper books mean:
- Books are closed consistently and on time
- Revenue is reported accurately and aligned to how the business operates
- Payroll and owner compensation are recorded correctly
- Sales tax exposure is identified and tracked
- Cash balances and liabilities are clearly reflected
When this foundation isn’t in place, issues surface at filing time, during audits, or even during financing or diligence.
And by the time those issues are discovered, options are limited. Planning becomes reactive, decisions get rushed, and fixes are more expensive than they needed to be.
The Role of a Finance Team Before the Tax Advisor Gets Involved
This is where a year-round finance function changes outcomes.
At Cypher, this means building systems that give leadership reliable, usable numbers throughout the year, not just at filing time.
A finance team ensures:
- Monthly closes happen on a consistent schedule
- Cash flow and runway are visible ahead of decisions
- Scenarios are modeled before hiring, pricing, or growth moves
- Financial tradeoffs are understood, not guessed
- Leadership has ongoing visibility, not point-in-time reports
This isn’t about replacing your tax advisor. It’s about giving them solid, well-structured financials to work from.
In practice, this is where outcomes improve. Clean monthly closes, clear cash visibility, and forward-looking models allow tax advisors to focus on strategy instead of cleanup.
As Bayaan highlights in the conversation, the best results happen when the bookkeeper, finance team, and tax advisor each operate within a clear scope and stay closely aligned.
Why Clean Financials Change Everything
We see the impact across clients at every stage.
At Sherpa, CEO Ben Nowlan described what happens when financial visibility disappears:
“We were left high and dry, financially blind… a major governance risk. The Cypher team came in, cleaned up months of unreconciled data, and gave us confidence in our numbers again.”
At DoorSpace, Founder & CEO Sarah Worthy put it like this:
“We did nothing before you guys. And now we do it all correctly. I never worry about our books being up to date.”
At Galaxy Digital, CFO Pierce Johnson highlighted how operational clarity changed outcomes:
“Our cash conversion improved. Billing became accurate. We got paid faster, and our books were more accurate because of the systems they put in place.”
They are financial visibility wins: clean books, accurate reporting, and timely data, which make real tax planning possible.
Why Growing Companies Outgrow a Tax-Advisor-Only Setup
As companies scale, the financial questions change.
Founders and CEOs start asking:
- Can we afford to hire right now?
- How long is our runway if growth slows?
- Should we invest more or conserve cash?
- What happens if we raise, acquire, or expand?
Those questions require forward-looking financial modeling, not just historical reporting.
This is why Bayaan emphasizes “scope clarity.” A tax advisor shouldn’t be expected to run forecasting, scenario planning, or cash strategy. That’s not a gap. It’s a different role.
A fractional CFO or finance team exists to fill that gap.
The Real Cost of Waiting
One point that often gets missed is the cost of waiting to address financial issues.
When problems are discovered late, companies often face:
- Increased tax advisor cleanup work billed at hourly rates
- Rushed decisions with limited or no options
- Higher audit and diligence risk
- Leadership teams making decisions without confidence in the numbers
By contrast, companies that maintain monthly financial visibility tend to spend less time and money fixing problems and far less energy reacting to surprises.
As Panoplai Founder & CEO Neil Dixit shared:
“Moving our invoicing over resulted in massive time savings internally, about 30 percent cost savings as well.”
So, Is a Tax Advisor Enough?
A tax advisor is essential, but they aren’t designed to carry the full financial function of a growing company.
Strong year-close outcomes come from:
- Clean, reliable books throughout the year
- CFO-level visibility into cash and decisions
- A tax advisor applying strategy to accurate data
When those pieces work together, closing out the year becomes straightforward.
When they don’t, problems surface too late.
If you want to start the new year with clarity instead of unanswered questions, the work starts long before the return is filed.
What to Do Next
- Listen to Part 1 and Part 2 with Bayaan on Cypher’s Founder Files podcast
- Available on Spotify and YouTube
- Get a clear view of your financial readiness
- Book a financial audit with the Cypher team.
- Book a financial audit with the Cypher team.
- Talk through your situation with our team
- Schedule a call with Cypher to discuss your current setup and next steps.
- Schedule a call with Cypher to discuss your current setup and next steps.
- Closing out the year
- Send an email to salma@cypherfin.com to receive our Year-End Financial Checklists to sanity-check your books, structure, and readiness before filing.
- Explore what a year-round finance function looks like
- Learn more about Cypher’s flexible, scalable finance model. Only pay for the services you need, and add support as your company grows.
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