The Value of an Accountant

If you pay a bookkeeper $2,000 a year, and they lose you $6000 on taxes, you're out $2,000, plus you've left $4,0000 on the table. If you pay a better accountant $5K a year and save $6K on taxes, you've gotten your accounting done for free, and now have a $1K profit. 

Profit drives business, so people who focus on costs only are missing out.

Plus, with the higher priced accountant, you’ve protected yourself from future problems.  Accountants and dentists are very similar in one way. You're paying them for the absence of problems.  If I go in for a teeth cleaning and routine check up every 6 months, and there are zero problems, it costs me about $600 - $700 a year.  That seems like a lot of money for no dental problems. But before I  bit the bullet on paying this expensive dentist, I was having all kinds of teeth problems. I credit his care with not needing a $1500 root canal. I appreciate the fewer dental visits and less pain. It's counter intuitive to pay for the problems I'm not having any longer. However, if the saying, "an ounce of prevention is worth a pound of cure" is accurate, it's 84% more profitable. 

What do you think?

Payroll Training

For many business owners outsourcing payroll is the way to go. But some clients want to do payroll in-house for a variety of reasons, especially job costing.

I had an opening in my schedule, so I decided to attend a $250 day long QuickBooks payroll seminar. What I learned is the best way to teach payroll. From now on, I want to walk clients through the whole setup. That's not only the best way to teach payroll, but we'll solve problems you didn't know you had in the first place.

What do you think?