Showing results for 
Search instead for 
Did you mean: 

Reply to message

View discussion in a popup

Replying to:
Established Community Backer ***

Re: Hector Garcia Says: “Five Questions You Should Not Ask Your Accountant”

1. How do I pay less taxes?
The supreme court said in ruling that a taxpayer is allowed, encouraged to use the tax laws to pay as little taxes as is legal.  The fact is that unless you are dealing with a tax accountant, most accountants have no idea.  Tax accounting is more of a specialty area.  Why you would use an accountant (which means he uses a tax accountant and bills you for that) instead of hiring a tax accountant to start with is beyond me.

3. How do I cut costs?
THIS is definitely in the realm of the accountant you pay.  He should be analyzing your costs and warning you that certain ones are increasing at an unusual rate.  If all you hire an accountant for is to push numbers - stop wasting money and hire a bookkeeper.  There is a cost savings right off the bat.

4. How do I improve my cash-flow?
Cash flow analysis is taught in accounting classes last I checked - why would you not expect your accountant to help with that?

2 & 5 are managerial type things I agree they are not accountant specific questions.

I would love to see the statistics, and especially the questions feeding that data, that supports the concept that small businesses are more likely to succeed with an accountant than without.  Having taken statistics, the questions are the key, ask them the right way and you get the answers you wanted, and if that fails, keep in mind the old saying, "figures lie, and liars figure" applies to statistics.  You can make numbers say most anything.