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System 7: Accounting & Cash Flow Systems

Role: The financial scoreboard and lifeline.

1. System Purpose​

To accurately track all financial transactions, manage revenue from course sales and services, control expenses, ensure regulatory compliance, and provide clear visibility into the company's financial health to support strategic decision-making.

2. Key Components​

  1. Invoicing: Generation and delivery of accurate invoices to clients for services and courses.
  2. Subscriptions: Management of recurring revenue streams, especially for ongoing course access or support plans.
  3. Expense Tracking: Recording and categorizing all business expenditures.
  4. Cash Flow Visibility: Monitoring the movement of money into and out of the business to ensure liquidity.
  5. Reporting Cadence: Regular generation and review of financial statements and performance reports.
  6. Payment Processing: Securely handling incoming payments from customers.
  7. Payroll & Employee Expense Management: Processing salaries and reimbursements for employees (linked to People Management).
  8. Tax & Compliance: Ensuring adherence to all relevant tax laws and financial regulations.

3. Tools Used (Within Current Stack)​

  • Accounting Software: QuickBooks Online (QBO) (Primary ledger for Invoicing, Expenses, and Reporting).
  • Bookkeeping Service: External Contractor (Jen) (Handles daily categorization and reconciliation).
  • Invoicing: QuickBooks Online (Automated invoicing linked to Deals). HubSpot Sales Hub (Quotes).
  • Subscriptions: Thinkific / Stripe Billing (Managed via QBO sync).
  • Payment Processing: Stripe (Integrated with Thinkific and HubSpot).
  • Payroll & Contractor Payments: QuickBooks Online Payroll or direct bank transfer (managed by Jen).
  • Tax & Compliance: Jen (External Bookkeeper/Accountant).

4. High-Level Workflow (Step-by-Step)​

  1. Revenue Recognition:
    • System 3: Sales closes a deal in HubSpot.
    • Sales or Admin creates the Invoice in QuickBooks Online.
  2. Invoicing & Payment Collection:
    • Invoices are sent via QBO.
    • Payments received via Stripe or ACH are automatically synced to QBO.
    • Jen reconciles payments weekly.
  3. Expense Management:
    • Receipts are forwarded to Jen or uploaded to the QBO Receipt center.
    • Jen categorizes expenses according to the Chart of Accounts.
  4. Financial Reporting:
    • Jen prepares the Monthly P&L, Balance Sheet, and Cash Flow Statement.
    • Reports are reviewed by management as part of System 1: Management & Leadership operating rhythms.
  5. Audit & Compliance:
    • Jen handles year-end prep and tax filing coordination.

5. Detailed SOPsSOP A documented set of step-by-step instructions compiled by an organization to help workers carry out complex routine operations.​

SOPSOP A documented set of step-by-step instructions compiled by an organization to help workers carry out complex routine operations.: Requesting Financial Data / Support​

  • Goal: To coordinate with our bookkeeper, Jen.
  • Communication: Email or Teams (as defined in Jen's onboarding).
  • Frequency: Weekly check-ins or as needed.

9. Current Configuration​

  • Software: QuickBooks Online.
  • Owner: External Contractor (Jen).
  • Reviewer: COO / Founder.