Common Complaints from Prospective Clients

As I've contacted prospective clients recently, I keep hearing the same complaint, which goes something like this: "My accountant just isn't very helpful. I know I'm missing out on some tax breaks, but they don't ever give me any ideas on what else I can deduct, and I for sure haven't earned as much as my profit and loss statement says I have."

Sound familiar? There's a simple explanation--it's like using a backhoe to water your marigolds. CPAs generally deal with the "big" stuff only; they look at your annual financial statements, make one or two adjustments, and pronounce general judgment on your finances. For example, they may post an adjustment to the balance of your accounts payable (the total of all your unpaid bills), but they won't adjust the balance due to your individual vendors. Believe me, you don't want to pay them their hourly rate to do that.

So if your CPA or accountant doesn't help you with the small stuff, go over your statements with you in detail, or volunteer any new ideas for the financial health of your business, maybe it's time to find a tool more suited to your needs. Your CPA can continue to handle the "big stuff," but you also need someone who will restructure your records in such a way that your financial statements make sense to you, help you fix errors and enter missing information, and brainstorm about how you might save on expenses and taxes. Let someone else do your dirty work!