Podcast Interview with Abbey Crane of Unscripted Small Business

Last week, I joined Abbey Crane on the Unscripted Small Business Podcast where we discussed my journey from corporate accounting to entrepreneurship. Starting my own firm was challenging, but it taught me the importance of accessibility and partnership in accounting. I also shared some valuable lessons on business structures, common tax deduction misconceptions, and when to hire an accountant. We even touched on some strategies for optimizing taxes and tracking expenses! Click here to take a listen!

Here's a Snippet of the Episode:

Abbey Crane: Doug, you've had quite a journey in accounting and entrepreneurship. Can you tell us how you got started?

Doug Johnson: I started at USC majoring in business, but everything changed when I took my first accounting class. It felt like learning a real, applicable skill – almost like a trade. The pipeline from college into big accounting firms is pretty robust, especially at USC, so I landed at Ernst & Young doing technical accounting advisory. After that, I moved to a company called GoodRx when it was still fairly startup-y with about 300 employees. Eventually, I launched my own CPA firm while building a real estate investment business in parallel. The cash flow from the real estate business actually gave me the confidence to go full-time with the accounting firm earlier last year.

Abbey Crane: What drew you to working with small businesses rather than staying in corporate accounting?

Doug Johnson: The biggest thing is seeing how small businesses often lack the processes and systems that bigger businesses take for granted. At GoodRx, we were constantly building new scalable systems, as things changed rapidly. Those skills translate perfectly to helping small businesses. Many business owners are great at their trade – whether they're a marketer or work in waste removal and recycling – but they're not necessarily equipped to scale the back-end side of their business. That's where I come in and help people.

Abbey Crane: What's been the most challenging aspect of starting your own firm?

Doug Johnson: The uncertainty, without question. I remember the night after I quit my corporate job – it was a great position with great pay and people I liked – I was initially stoked about going out on my own. Then this existential dread hit me, and I thought, "What did I do with my life?" Having to face the fact that I might have to take a downgrade if I went back to corporate actually fueled me to make it work. I think that's natural though – there's always going to be uncertainty when you try something new. You need to learn to let that uncertainty either paralyze you or fuel your determination to succeed.

Abbey Crane: You see yourself as more than just an accountant – you're a partner in your clients' success. What does that look like in practice?

Doug Johnson: I saw a gap in the market based on two consistent complaints I kept seeing online. First, "I can't get hold of my accountant." Second, "My accountant only does my taxes at the end of the year with no guidance throughout." That's where I can add the most value. Having managed expenses for a large company, I understand how financial decisions impact business performance. I help clients analyze their financial performance, identify revenue levers, and spot where costs might be bloated. For example, many small businesses dump money into advertising across multiple platforms without tracking the return on that investment. That's an easy win – we can analyze that spending and make sure it's actually driving results.

Abbey Crane: When should entrepreneurs incorporate an accountant into their business?

Doug Johnson: It's really a cost-benefit question. I'm upfront about this – I'm not going to be the cheapest tax pro out there, and that's because I provide better service and more accessibility. If you're just starting and have $10,000 in revenue, spending a big chunk on an accountant probably isn't the best choice. Around $100K in net profit is where tax planning starts making sense. That's when questions like "Should you become an S corp?" and "Should you elect into pass-through entity tax?" become relevant. Before that point, you're probably better off investing in digital marketing or operations.

Abbey Crane: Let's talk about common misconceptions regarding tax deductions and write-offs. What should small businesses know?

Doug Johnson: The biggest misconception I hear is "I have an LLC, so I can write off anything this LLC purchases." That's not how it works. A great example is vehicles – people will buy a $50,000 luxury vehicle and say it's a business expense because they use it for business. But if you only use it 10% of the time for business, you can't deduct the whole $50,000. Vehicles are one of the biggest areas of audit for that exact reason. Another misconception is the idea of buying things just to offset taxes. If you have a high tax bill, that means you made money – that's good! And remember, when you buy something for $50,000, you're not reducing your tax bill by $50,000 – you're reducing it by $50,000 times your tax rate. Don't step over a dollar to pick up a dime.

Abbey Crane: What strategies do you recommend for businesses to optimize their taxes throughout the year?

Doug Johnson: One thing I'm dealing with right now is helping clients address what I call "tax sticker shock." Especially for businesses that had a great year or didn't make estimated tax payments, facing that year-end bill can be overwhelming. Making estimated tax payments throughout the year not only helps avoid penalties but makes the whole thing more manageable psychologically. Another strategy, particularly for businesses with higher cash flow, is maximizing retirement accounts. Small business owners can put away up to $69,000 in 2024, compared to $23,000 for W-2 employees. That's a powerful way to defer taxes while building your future. There's also the pass-through entity tax election, which can help circumvent the state and local tax cap on itemized deductions – though I should note there's uncertainty about what the tax code will look like beyond 2025.

Abbey Crane: Any final advice for entrepreneurs thinking about their tax strategy?

Doug Johnson: You have to take risks to build the life you want. That applies not just to business but to everything worthwhile. Starting a business is never going to be without risk, but understanding your numbers, keeping good records, and working with the right advisors can help manage that risk. Whether you're just starting out or scaling across states, focus on building solid financial foundations. And remember – while minimizing taxes is important, don't let tax decisions drive your business decisions. Focus on building a profitable, sustainable business first, and let the tax strategy support that goal, not the other way around.