Why Accounting Is the Cornerstone of Business Success: A Conversation with Roger Knecht of Universal Accounting Center

In the world of entrepreneurship, passion and innovation often drive the creation of a business—but without a solid understanding of accounting, many promising ventures fail to thrive. Numbers may not be glamorous, but they are essential for sustainable success. Enter Roger Knecht, President of Universal Accounting Center, a seasoned expert who has made it his mission to bridge the gap between business owners and the financial clarity they need. With decades of experience in helping entrepreneurs understand the true power of accounting, Roger has transformed the way leaders view their books—not as a burden, but as a vital tool for growth, strategy, and profitability.

In this enlightening interview, Roger sits down with Stacey Chillemi to break down the core elements of accounting and why it’s so much more than just taxes and bookkeeping. He offers an accessible, step-by-step approach to understanding how accounting supports every area of business—from marketing and production to forecasting and scalability. Whether you’re a seasoned entrepreneur or just getting started, Roger’s insights will help you rethink your relationship with numbers and give you the tools to make smarter, more informed decisions that drive real success.

Thank you so much for joining us, Roger! Our readers would love to get to know you a bit better. Can you tell us a bit about your backstory?

Absolutely! I’m the President of Universal Accounting Center, and my passion is empowering accounting professionals and business owners alike. For over two decades, I’ve worked closely with entrepreneurs and accountants, helping bridge the gap between what business owners think accounting is and what it actually can do for them. I’ve seen firsthand how transformative financial clarity can be. Our work at Universal Accounting is all about giving people tools, education, and the confidence to use their numbers to drive growth, profitability, and lasting success.

Why do you think most business owners overlook accounting when building or running their businesses?

It’s simple—most entrepreneurs don’t start their business because they love numbers. They’re driven by passion for their product or service. They love selling, creating, and connecting with customers. But accounting? That’s often seen as a “necessary evil”—something they know they should deal with eventually. Unfortunately, that delay or avoidance often leads to major issues down the line. What they don’t realize is that when used correctly, accounting is a business owner’s best friend—it provides the insight they need to make smart decisions and avoid preventable mistakes.

Can you break down the three key components that exist in every business?

Absolutely. Every business, no matter its size or industry, consists of three critical elements: marketing and sales, accounting, and production. Marketing and sales bring in customers. Production delivers the product or service. And accounting is what ties it all together—it’s the financial language your business speaks in. Most business owners focus heavily on the first two because that’s where they see the action and the money coming in. But the truth is, accounting allows you to understand what’s happening, optimize your operations, and spot problems before they escalate. When all three areas are aligned and functioning well together, that’s when a business thrives.

How does accounting support marketing and production?

Accounting informs everything else. For marketing, it shows you the return on your ad spend or whether customer acquisition costs are sustainable. For production, it tells you if your costs are rising and if your pricing still makes sense. Without this data, business owners are guessing. With it, they can act with confidence. It allows you to make fact-based decisions instead of going off gut feelings. That level of insight can mean the difference between a business that struggles and one that scales.

Can you break down the three components of the accounting function?

Definitely. Within accounting, we have three core components: bookkeeping and accounting, tax planning and preparation, and CFO/advisory services. Bookkeeping tracks all the financial activity. Tax planning and preparation make sure you’re not overpaying Uncle Sam. And CFO/advisory support is where you gain high-level strategic insight—guidance on how to grow, manage cash flow, and plan for the future. Each one plays a specific role, and together, they form the foundation for intelligent decision-making in any business.

What’s the most crucial first step in business accounting?

Bookkeeping, hands down. This is where the magic starts—tracking your transactions in real time, organizing them into usable reports, and creating the groundwork for solid decision-making. Think of it as the raw data your business is generating every day. Once you turn that into structured reports, like profit and loss statements or balance sheets, you start to hear what your business is “saying” to you. It’s about turning transactions into wisdom. And the more consistently and accurately you do it, the more intuitive running your business becomes.

How does analyzing financial reports help a business owner?

Reports like your income statement, balance sheet, and cash flow report give you more than just numbers—they tell a story. And that story is critical. By comparing your reports month over month or year over year, you can spot trends like rising costs, shrinking margins, or increased payroll expenses. You can see whether marketing campaigns are paying off or if it’s time to raise prices. These insights let you stay proactive instead of reactive. When you understand your numbers, you gain clarity, control, and direction.

Many business owners just hand off their reports to their bookkeepers or accountants. Why is that a problem?

Because they’re missing the point. If you don’t engage with the data, how can you use it to drive your business? Too often, business owners rely solely on their accountant or bookkeeper to handle everything, especially for tax purposes, but they never look at the numbers themselves. That’s a mistake. The accountant should act as an interpreter, someone who helps you understand what your business is telling you. When you collaborate and ask questions, you unlock so much more potential.

Speaking of taxes, why do so many businesses wait until year-end to review their books?

That’s one of the biggest pitfalls. Most business owners see accounting purely as a tax compliance issue—they wait until the end of the year to sort through receipts and file returns. But accounting isn’t just about taxes—it’s about understanding if your business is profitable throughout the year. Waiting until December is like driving with your eyes closed and only checking the map after you’ve reached the wrong destination. If you stay current, you can make smarter moves all year long and avoid financial surprises.

How does accounting help with scaling a business?

Scaling involves taking calculated risks. Whether you’re hiring staff, investing in equipment, or expanding your offerings, you need to know if your business can support those decisions financially. That’s where pro formas, budgets, and forecasts come in. An accountant or CFO can help you model what your business will look like in two, three, or six months. You’re no longer guessing—you’re planning based on real numbers. That kind of foresight makes growth possible without the stress of uncertainty.

What’s the difference between a bookkeeper and a CFO?

Great question. Bookkeepers track and record your financial data. They make sure everything is documented correctly. A CFO, on the other hand, helps you analyze that data, set strategy, manage cash flow, and even raise capital. Think of it this way: the bookkeeper tells you what happened. The CFO tells you why it happened and what to do about it. As your business grows, having that advisory-level support becomes more and more essential.

You emphasized the importance of cash flow management. Why is that so critical?

Cash flow is the lifeblood of your business. A company can have great sales, happy customers, and even profit on paper—but still run out of money. If you can’t pay your bills, you’re in trouble. That’s why so many businesses fail within their first five years. They simply didn’t manage cash well. With strong cash flow systems in place—understanding your receivables, payables, and payment terms—you ensure the business keeps moving forward. And that’s what a CFO helps you put in place.

How can business owners better manage cash flow?

It starts with visibility. You need to know how quickly customers are paying you, what your vendors expect, and where your biggest expenses are. Then, you build systems that align with those timelines. A good CFO or advisor will also help you find funding, stretch your cash reserves, and reduce financial risk. It’s not just about cutting costs—it’s about being strategic with how and when money flows in and out.

How does your organization, Universal Accounting Center, support business owners?

At Universal Accounting, we do two things. First, we train and certify accounting professionals so they can deliver high-level services to business owners. Second, we educate business owners themselves—helping them understand what to expect from their accounting team. I wrote a book called Your Strategic Accountant specifically to help bridge that gap. We want entrepreneurs to feel confident, informed, and empowered when it comes to their financials. Our goal is to simplify the numbers so you can focus on building a successful business.

What is Your Strategic Accountant about?

It’s a guide for business owners to demystify accounting. It explains what services a bookkeeper, accountant, or tax preparer should provide—and what you should expect as a paying client. Too many business owners operate in the dark, not knowing what their accounting team is doing or why it matters. This book is meant to eliminate that confusion, improve communication, and ultimately help businesses run smarter. It’s about giving you clarity and control.

Where can people get the book?

The easiest way is to go to UniversalAccounting.com and click on “Free Resources” in the navigation. Your Strategic Accountant is one of four free eBooks available. Each one is designed to help business owners and accountants align their goals and communicate effectively. I highly recommend taking advantage of all of them.

What’s the biggest mindset shift business owners need to make about accounting?

Numbers are your friends. They’re not emotional. They’re not judgmental. They just tell you the truth. But they need to be timely and organized to be useful. If you work closely with your accountant, you’ll start to see your numbers as tools—not threats. And you’ll find ways to reduce your tax liabilities legally, manage cash better, and drive real growth. When you embrace accounting, you empower your business.

You talk about “beginning with the end in mind”—what do you mean?

Your business isn’t just a job—it’s an asset. One day, you may want to sell it, retire, or pass it on. The valuation of that business will largely depend on your financials. The more intentional you are now about building a profitable, well-documented, financially sound operation, the better your future options will be. So don’t just think about the next month—think about what you’re trying to build over the next 5, 10, or 20 years. Accounting helps you shape that vision and make it a reality.

Any final takeaways for our readers?

Embrace your numbers. Don’t fear them. Lean into them. With the right support, accounting stops being something you dread and becomes a tool you love. It saves you money, reduces stress, and helps you lead with confidence. Your business deserves that level of care. And so do you.

How can our readers further follow your work online?

Connect with me on LinkedIn—just mention this interview with Stacey and I’d love to chat. And make sure to visit UniversalAccounting.com to explore our free tools, resources, and programs. Whether you’re a business owner or an accounting professional, we’re here to help you grow, succeed, and build the business you envision.

Roger, thank you so much for joining us today and sharing such valuable insights. It’s always a pleasure having you on the show.

Thank you, Stacey. It’s always a privilege to be here and to contribute to the important conversations you’re leading for business owners.

To hear the full conversation and gain even more insights, be sure to listen to the podcast episode featuring Roger Knecht on The Advisor with Stacey Chillemi: Money Talks: Here’s How to Make It Work for Your Business.