Interview – Rebecca Blankenship

Amanda: Welcome to Female Fractionals, the biweekly podcast for successful female fractional executives and those ready to take the leap. In each episode, I’ll bring you actionable lessons and inspiration through interviews with thriving fractional leaders and experts. Let’s dive in.

Hi everyone, and welcome to this episode of Female Fractionals. I'm your host and fractional CMO, Amanda Nizzere. In this episode, I'm speaking with Rebecca Blankenship, a fractional bookkeeper and CFO who helps women entrepreneurs feel confident—not ashamed—about their finances and numbers.

After transitioning from mechanical engineering and time as a stay-at-home mom, she built a thriving virtual bookkeeping and advisory business that now supports women-led companies across all stages of growth.

In this discussion, we dig into the top five financial questions that fractionals often ask her—from “Should I become an S Corp?” to “Why isn't my net profit what’s in my bank account?” We offer real, practical advice that listeners can take action on immediately. Whether you're brand new to fractional life or five years in and still unsure how to pay yourself, this episode will leave you feeling more empowered, informed, and ready to take charge of your finances.

Without further ado, let’s jump into the discussion.

Hi, Rebecca. Welcome to Female Fractionals. I'm so glad you're here.

Rebecca: Thank you for having me. I'm really excited too!

Amanda: So I like to start every discussion talking about everyone’s background and how they landed where they are. Your background is so interesting—from mechanical engineering to stay-at-home mom to fractional bookkeeper and CFO. How did you get here, and why is working with women entrepreneurs so important to you?

Rebecca: That’s a great question. So—corporate job in mechanical engineering. I went to college, got into the industry, and stayed there until I was pregnant with my first. I went back to try it out, and realized it wasn’t as fulfilling as a mom as it had been before. I really wanted that one-on-one time with her. Thankfully, my husband agreed and was supportive, so I stayed home with her for a few years.

I ended up getting pregnant again but had a miscarriage. During that time, I was struggling. I wanted to do something more than just being a stay-at-home mom—not that that’s not amazing, but I felt like I had something else to give. I was looking at different options with flexibility, because I didn’t want to put her in full-time daycare.

I found bookkeeping as a solution. I’m really good with numbers and I love partnering and providing solution-oriented services for others who are struggling with or have questions around finances. That’s how my business started. I started slow and intentionally because I wanted to be present with my child—and later, my children—but also wanted to serve my clients well.

Now I’ve got several clients, and I love intentionally partnering with women entrepreneurs. I find they’re the ones I can make the biggest impact with. They understand the need to outsource, they’re motivated—women are amazing. They also see the relationship as a partnership. I don’t work for them—I work with them. That mindset really fills my cup.

Amanda: I love that so much. When we had our initial conversation, there were so many topics we could have explored—you were so helpful to me. What I’d love to dive into today are the top five financial questions that you get from your fractional clients.

Let’s start with the first one: When should I become an S Corp? What factors should someone consider before making that switch from LLC to S Corp?

Rebecca: Great question. One of the biggest things people come to me with is, “When should I become an S Corp?” You hear a lot online—big numbers, big tax savings—and people think they’re leaving money on the table.

Now, I don’t do taxes, but I prepare financial statements so clients can partner with a tax advisor. The first question is: Can you pay yourself a reasonable salary? If you’re not consistently taking money out of your business—or not enough to warrant a reasonable salary based on your location and industry—that’s a red flag.

There are a lot of other questions too, which is why partnering with a tax advisor is important. Your tax situation as a whole matters. Are you married? Filing jointly? Does your spouse own a business or work for someone else? Do you have rental income?

Becoming an S Corp also adds costs. You’ll have a second tax filing for the business, you’ll need to run payroll—which comes with fees and filings. Yes, it can save you money, but only in the right context. There’s no one-size-fits-all. I’ve seen people elect S Corp status too early and then deal with the consequences. The goal is to make the right decision based on your specific situation and long-term business plans.

Amanda: Are there common myths or mistakes people make around S Corp timing?

Rebecca: Definitely. One big one is people aren’t even taking money out of their business yet. That tells me either they don’t understand their numbers, or their cash flow is too inconsistent. If you can’t take a consistent salary, you shouldn’t be an S Corp.

Another common mistake: people make the election but don’t follow through on payroll. Then they get to tax season and realize they didn’t pay themselves properly—which could result in penalties. An S Corp isn’t just a checkbox—it’s a commitment with ongoing responsibilities.

Amanda: That makes sense. And that leads us to the second question, which is: How do I pay myself and stay out of trouble while doing so?

Rebecca: Yes, that's the second most common question I get. Most people want to do it the right way. If you’re an S Corp, you need to be on payroll. If you’re not, then you can pay yourself through distributions—transferring funds to your personal account or writing a check.

There are great payroll providers out there that make this easy. They handle filings, issue W2s, and make the whole process smoother. Whether you're on payroll or taking distributions, it’s critical that you do it consistently, track it properly, and categorize it correctly on your books.

And remember: distributions don’t appear on your P&L—they’re on your balance sheet. At year-end, we want to make sure those are accurate and that personal expenses aren’t getting mixed in.

Amanda: So even if you’re on payroll, you can still take distributions?

Rebecca: Absolutely. I became an S Corp last year after being in business for five years. I take a salary through payroll and also take distributions—but I understand I’ll owe taxes on those. That’s part of the benefit of doing payroll—it helps reduce the tax burden at year-end.

Many people are surprised at tax time because they haven’t prepaid taxes or they added unexpected revenue without accounting for the tax implications. That’s why having both a bookkeeper and a tax planner is so helpful. They help you plan ahead and avoid nasty surprises.

Amanda: That’s such a helpful reminder—especially for people coming from corporate, where all of this was just taken care of. Another big question: What is cash flow, and why is it different from what I see on my P&L?

Rebecca: Great question. People often say, “My bank balance says this, my P&L says that. Why don’t they match?”

The P&L—also called an income statement—shows revenue, expenses, and net profit over a period of time. But it doesn’t include liabilities like credit card balances or loans. That’s where your balance sheet and cash flow statement come in.

To get the full picture of your business’s health, you need to look at all three: P&L, balance sheet, and cash flow statement. Cash flow shows how money moves in and out—when and where. It helps you understand your real-time financial position.

And remember, someone might say they run a seven-figure business—but that doesn’t mean they’re keeping much of it. I’d rather see a healthy net income than flashy revenue. Profitability matters more than vanity metrics.

Amanda: I love that. Okay, next up: Do I need to worry about sales tax?

Rebecca: If you're product-based, then yes—sales tax is a real concern. It’s dictated by your state. Some states even tax digital products, while others don’t.

If you have both product and service components in your business, that’s another reason to consult your state’s department of revenue or your tax advisor. It changes frequently, so don’t rely on last year’s rules.

Amanda: That’s one I hadn’t even thought about before. Thank you for clarifying that. Now, one that comes up all the time: Am I doing okay? Especially in terms of profit margin—what’s “good”?

Rebecca: It depends on your industry. Service-based businesses tend to have higher margins because they don’t carry inventory. Retail or product-based businesses usually have lower margins due to inventory and overhead.

For service businesses, 15–25% profit margin is great. For product-based, it might be single digits depending on the season.

You can check out industry benchmarks on sites like BizStats and EDGAR. And I love running a P&L report as a percentage of income. It helps you see where your money is going—like subscriptions, advertising, or professional development—and where you might be overspending.

Amanda: So true. Especially when you’re starting out, it’s easy to sign up for all the tools and forget to check if they’re really adding value. Last question before we move to rapid fire: How do you help women entrepreneurs build confidence around finances?

Rebecca: A lot of people come to me feeling embarrassed. They think they should already know this stuff. But how would they know if they’ve never had to manage business finances before?

I start by creating a safe space to ask questions. We focus on education and repetition—reviewing reports together, walking through how money flows in and out, and identifying the right questions to ask when making decisions.

And we work on the mindset too. Telling yourself “I’m not a numbers person” is often just a confidence issue. It's like saying “I'm not a website person”—you just haven’t built the muscle or chosen to outsource it. That’s okay. You're not meant to do everything.

Owning your own business already makes you extraordinary. You're doing it scared—and that’s powerful.

Amanda: I’m never saying “I’m not a numbers person” again. That’s such a helpful reframe. Okay, a couple questions just for me: As an S Corp, what can I do to avoid the tax-time panic?

Rebecca: First—high five for paying quarterly taxes! That’s huge.

Second—work with a tax professional, if you aren’t already. Then, set a recurring calendar reminder every quarter to gather your reports, check your revenue against projections, and communicate with your bookkeeper or tax advisor.

Create a routine. When tax tasks become a regular part of your business, they lose their power to stress you out. And remember—it’s okay to make mistakes. Just keep learning and improving.

Amanda: That already makes me feel better. I’m putting that calendar entry in right after we hang up. Okay, what’s “Profit First,” and why do you recommend it?

Rebecca: Profit First is a book and a financial framework that prioritizes paying yourself before expenses. Instead of spending and hoping something’s left over, you start by setting aside profit, then budget the rest.

It’s all about healthy cash management. Even small changes—1% improvements—can add up. It also helps you see what’s truly essential in your business and gives you permission to take home the income you’ve worked so hard for.

I’ve implemented it in my business, and I support clients who do as well. It’s been a game-changer.

Amanda: I love that. Especially for fractionals thinking about pricing and take-home pay. Okay, time for rapid fire. One-word or one-sentence answers:

Best investment you’ve made in yourself?

Rebecca: Joining a mastermind of women entrepreneurs outside my industry. It changed everything.

Amanda: Fun fact not on your LinkedIn?

Rebecca: I own a motorcycle and have had my license since I was 16.

Amanda: Early bird or night owl?

Rebecca: Night owl.

Amanda: Favorite way to celebrate a win?

Rebecca: Going out to dinner with my husband and kids and talking about what the win meant.

Amanda: Most-used emoji in professional texts?

Rebecca: Smiley face 😊 — it softens things and adds warmth.

Amanda: If you could instantly master any skill?

Rebecca: Singing! I’d love to have a voice like Adele or Mariah Carey. Sadly, not my gift.

Amanda: This has been an amazing conversation. I’ll link to everything in the show notes and transcript. But if people want to reach you, how can they find you?

Rebecca: The best place is my website: snowdropbookkeeping.com. There’s a contact form and my email is listed there. I’m also on LinkedIn and Instagram, though less active. I’m always happy to answer questions or be a sounding board.

Amanda: Thank you! You made a tough topic feel approachable and empowering. I’m so glad you came on.

Rebecca: Thank you for having me! I had a great time.

Amanda: As always, please follow, like, comment, and share. Don’t forget to visit femalefractionals.com for a full transcript of the show and links to everything we talked about. Thanks for listening.

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