I got a few replies on yesterday’s email. Over the last few days, we’ve been talking about why you need a CPA, what you should look for in one, and today – we’re going to talk about how to fire your current CPA if you realize she’s not the right fit for you. If you missed either of our first two posts, you can click HERE to check those out.
So, let me share one of yesterday’s replies….
“Danielle. I read your email today. I’m not sure what to do next. My cousin has been doing my books. They’re never done on time, and when it comes time to file my taxes, I feel like we’re missing important deductions. What should I do?”
Another one…
“So, if I have an accountant that I’m just paying when she does work, is there more he should be doing? He doesn’t ever really suggest ways to save money for me…”
I think of accountants a little like hair stylists.
In some salons, you walk in and tell the stylist what you want. “I want my hair about this long and I want highlights.” Some stylists will say, “great” and go from there.
Others will run their fingers through your hair a bunch of times, turn your chair to see all the angles, ask you follow up questions and then make suggestions on what they think would best suit your facial features and hair type.
The replies I got yesterday – were from people who have accountants like that first stylist. They do their job and take your money. They trade a service for money.
My CPA is like the second one. She bills me every month. But she also knows if she can find new deductions, give me a heads up when legislation is changing and it might impact my finances and keep me accountable for my taxes – I’m likely to develop a loyalty to her.
The bottom line is – you can’t keep paying someone who is just taking your money and doing the job. You’re not a tax expert. You’re not likely investing a lot of time into local, state and federal legislation that will impact your finances. If you think there isn’t something on a regular basis you need to know about, then you’re likely losing money. Our sales tax goes up often. Way too often actually. If I didn’t get an email every time it did, I’d be losing thousands every year.
Your family friend probably isn’t keeping up with all that legislation, and as a result – you’re losing money.
So, have an honest conversation. Let him or her know you appreciate the service you’ve received over the years. Ask for (and immediately pay) your final balance with this person. Ultimately, as we grow in our businesses, we outgrow people. You may have outgrown your current bookkeeper, and that’s OK. I bet Amazon, Google and Tesla aren’t getting their books done by a family friend or customer who does books on the side. You shouldn’t either. Budget for professional services, and hire someone.
Also, start asking questions. Once you find a good CPA, chances are – you will save the same amount you invest each month just by making wiser decisions!
