“The value of an accountant who specializes in year round bookkeeping”
Recently, a prospective client of mine pointed out to me that one of my ‘competitors’ was going to do his books and provide monthly statements for substantially less than I quoted him. So I was forced to ‘defend’ my price.
It turns out that the ‘competitor’ he is referring to is a local bookkeeping service that does not do tax returns. My fees normally include tax returns. But the real issue is of continuity. This service subcontracts the tax returns to someone else.
Several weeks ago, I had run into another prospective client, who coincidentally was using the same bookkeeping service, yet they were talking with me about being their accountant and doing their bookkeeping. It turns out that the bookkeeping service was fine, and had all sort of good ideas and suggestions.
The trouble is that there was no follow through. Many of the suggestions related to the preparation of the tax return, and therefore these suggestions weren’t getting to the ‘accountant’.
In our firm, the accountant reviews the financial statements every single month, and communicates with the client on an ongoing basis with an eye towards preparing the tax return at the end of year. We’re thinking about this all year round, so we don’t have any surprises at the end of the year.
As an Epilogue, the first prospective client saw the light , and became a client. The second one is still trying to figure out where the money would come from.
So, if you insist on having a separate bookkeeper from your accountant, be sure to include your accountant in some of those meetings held throughout the year. This will assure continuity in your business from keeping the books to preparing the final tax returns.