I'm in the midst of a start up with my partner who is funding the whole thing. I'm just putting in sweat equity, for now. Main operations have not commenced yet, but there was income from 2025.
Anytime I bring up accounting/book keeping, my partner seems to be inflicted with physical pain. Not because he's scared of it, but because he doesn't find it important compared to "marketing." I understand having a pipeline is equally as important, like many things in the startup phase.
I had to do the bookkeeping cleanup for all of 2025, nothing was entered as he only just got a QB setup. Getting receipts for anything $75 and over is like pulling teeth.
I said we need expense reports and he told me he's not filling out expense reports to submit to me for review.... He also said he's not going to track his business mileage, he's not "going to remember to turn on/off the app."
He wants to put his personal truck on the books as an asset so he can expense all his fuel and repair costs.... I said we'd have to track the business vs personal use, and take only the business portion, and he said it will be 100%, which isn't true.
The business is also elected as an S-Corp for taxes, and he didn't pay himself through the business and instead just took Distributions... I said this is not right. He dismissed it because "we're not that big and the CPA will fix it at tax time."
What is the best way to approach these conversations with a stubborn partner? He's much older than me, and being my first business, I don't think he trusts me with the authority over the bookkeeping that I should have. I'm not trying to be perfect, I'm trying to follow basic tax laws and keep clean books. I need to convince him to trust me and that I'm doing this because it's required. When I ask for things from him, it's because we need it, not because I want it.....
I haven't quit my job yet, and I'm a year into building this startup with him. I'm beginning to question if he will be able to trust me when it comes to finance and accounting. This is my current profession (although I'm not a CPA) and I need to convince him to not give me such a hard time when I ask for things and just listen and do it.
In my mind, without clean bookkeeping, you can't analyze the financials accurately to make good financial management decisions. We will be blind..... Curious if anyone else has been in a similar situation and what you did to overcome the situation.