What if the business you're about to buy looks profitable on paper—but the books are quietly hiding the truth?

In this episode of the Acquisitions Academy Podcast, Mike sits down with Candace Galiffa, founder of NewWay Accounting, a CPA who specializes in bookkeeping, financial reporting, and year-round tax strategy for small business owners and entrepreneurs.

Coming from a family of small business owners, Candace has seen firsthand what it takes to build a company—and what it takes to evaluate one. She breaks down the red flags and green flags every buyer should watch for, starting with the biggest red flag of all: a seller who can't produce a real set of financial statements.

The conversation covers why net profit, not revenue, is the number that actually matters; when messy books can be repaired versus when to walk away entirely; why business owners need an accountant year-round rather than once a year; and the very real risks of leaning too hard on DIY and AI bookkeeping tools—illustrated by a costly real-world example.

On the strategy side, Candace explains how entity structure (single-member LLC, S corp, or C corp), bonus depreciation, Section 179, and cost segregation can change your tax outcome after an acquisition—and the material-participation trap that catches passive real estate investors. She also shares how to prepare for an exit by aligning your financials with your target price and timing deductions deliberately.

Whether you're acquiring your first business, scaling your current one, or preparing to sell, this episode will help you read the numbers that matter and build the right financial team around you.

Quotes:

“Revenue is great, but it doesn't pay the bills. The most important number is net profit.”

“Bookkeeping isn't overly sexy, but it is the number one tax strategy.”

“There's no ceiling. Anything you have a passion for, you can build a business for.”

Takeaways:

No financial statements is the biggest red flag

A business worth buying should provide a full P&L, balance sheet, and prior-year tax return so the numbers can be reconciled—because tax returns generally don't lie.

Net profit matters more than revenue

Revenue doesn't pay the bills; the bottom line is what you actually take home, and it's often what drives the multiple you're paying.

Episode Timeline:

00:00 Podcast Welcome

01:51 Meet Candace Galiffa

03:08 Red Flags And Green Flags

05:05 Repair Or Walk Away

06:41 Why Year-Round Accounting

07:13 Right-Sizing The Service

09:42 The DIY And AI Question

10:09 When AI Gets It Wrong

11:12 Bookkeeping Is Non-Negotiable

12:46 Tax Strategy After You Buy

13:15 Choosing Your Entity

14:00 Bonus Depreciation And Cost Seg

15:48 How New Way Helps

16:06 Booking A Consultation

16:35 Preparing To Sell

18:07 Connecting Buyers And Sellers

20:16 Plan Your Taxes Ahead

21:01 Mompreneur And Legacy

24:11 Where To Find Candace

24:39 Final Outro

Conclusion:

Candace Galiffa's message is refreshingly direct: in any acquisition, the books tell the real story. A clean set of financial statements, a focus on net profit over revenue, and basic tax compliance separate a buyable business from a costly mistake. And once you own a business, the right entity structure, depreciation strategy, and proactive year-round planning can meaningfully change what you keep. Whether buying, scaling, or preparing to sell, the throughline is the same—surround yourself with professionals who can read the numbers, and make financial decisions on purpose rather than by accident.

Links:

Website: https://www.newwayaccounting.com/

Instagram: @NewWayAccounting

Community: JVDeals.CBRCapitalGroup.com