The Real Cost of Bad Books, with Daryl Ching

You’re dreaming about starting a business—but numbers aren’t exactly your thing. You imagine freedom and purpose, not spreadsheets and expense tracking. Still, even at the idea stage, the financial side matters.

If you don’t understand your margins or where the money goes, instincts alone won’t keep you afloat.

In this new episode of The Unsure Entrepreneur Podcast, I talk to Daryl Ching, CFA and Managing Partner at Vistance Accounting. He’s spent a decade on Bay Street, another advising startups, and has recently shared his views on BNN Bloomberg and The Global and Mail.

The goal for many startups is to be acquired—like Canadian startup AppArmor, which sold for $40 Million. AppArmor co-founder Dave Sinkinson shared his story on a previous podcast episode.

Whether it's venture funding or trying to attract a buyer, Daryl has seen deals fall apart for one common reason: bad books.

“The financials were inaccurate. Clients had a bookkeeper and an accountant who filed once a year. That setup isn’t enough.”

He tells me that most founders know their revenue and profit—but not what happens in between. That’s where growth and risk live. “A lot of CEOs know top and bottom lines. But they can’t explain the costs or margins that really drive the business.”

Daryl shares a key stat: using an external accountant saves 9.1 hours a week. That’s a full workday. 98% of owners who outsource their books say they feel more confident and capable.

“If we save you 10 hours a week, what’s that worth? Could you close another deal with that time?”

Bad books break deals. No lender or investor trusts a balance sheet they can’t verify.

Here’s what you can do to make sure you're not guessing your numbers anymore:

• Get your financials by the 15th of each month.

• Cut dead subscriptions and stale software every six months.

• Decide on tax strategy based on future goals, not short-term savings.

These aren’t big leaps. They’re small shifts that free you up to focus on sales, strategy, and sanity.

“One client cut 50% of expenses during the pandemic—and only lost 20% of output. Waste hides in plain sight.”

He also warns against combining personal and business cash: CRA sees it as salary and taxes you hard. With a clean shareholder loan account, you can pull money tax-free.

Good accounting isn’t just compliance. It’s a growth strategy.

Whether you're already in business or still weighing the leap, your numbers matter more than you think. If your books are behind, your decisions will be too. Don’t rely on gut feelings alone because those can only take you so far.

Listen to the full episode to get a handle on your finances. Because the sooner you understand your numbers, the sooner you can start building a business that truly works.

[Photo: Daryl Ching]