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?
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