𝐑𝐚𝐫𝐞𝐥𝐲 𝐬𝐨 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐨𝐰𝐧𝐞𝐫𝐬 𝐬𝐞𝐞 𝐭𝐡𝐞 𝐯𝐚𝐥𝐮𝐞 𝐚𝐬𝐬𝐨𝐜𝐢𝐚𝐭𝐞𝐝 𝐰𝐢𝐭𝐡 𝐨𝐮𝐭𝐬𝐨𝐮𝐫𝐜𝐢𝐧𝐠 𝐭𝐡𝐞𝐢𝐫 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐮𝐧𝐭𝐢𝐥 ….

𝐑𝐚𝐫𝐞𝐥𝐲 𝐬𝐨 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐨𝐰𝐧𝐞𝐫𝐬 𝐬𝐞𝐞 𝐭𝐡𝐞 𝐯𝐚𝐥𝐮𝐞 𝐚𝐬𝐬𝐨𝐜𝐢𝐚𝐭𝐞𝐝 𝐰𝐢𝐭𝐡 𝐨𝐮𝐭𝐬𝐨𝐮𝐫𝐜𝐢𝐧𝐠 𝐭𝐡𝐞𝐢𝐫 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐮𝐧𝐭𝐢𝐥 ….

One day the business owner says – we have enough office people in place and everything is running smoothly we don’t need to keep paying you so we don’t need your services any longer. The consultant explains that because of all the work and measures implemented the business is in that position. Separating will be detrimental to the ongoing operations.

Fast forward 6 months – the cash is low, the bank keeps calling, the IRS is sending penalty notices, the sales tax returns haven’t been filed, the bank reconciliation is out of the balance, the payroll isn’t being run on time and the payroll tax liabilities haven’t been paid because there’s not enough cash and the audit adjustment is the highest it’s ever been and nobody knows what’s going on.

The consultant starts to receive frantic emails, calls and text messages from the owner to fix it.

Sorry you didn’t see the need to spend the 1.5% of revenue collected for outsourced accounting services.

When there business is financially stable, invoices are paid, audits are completed, there are no notices from the federal, state or local taxing authorities, payroll is accurate, internal control measures are in place, lenders are receiving debt payments, the tax preparer has no questions about the financials, fixed assets are being depreciated, customer payments are recorded, cash flow forecasts are closely reflecting operations, and the owner understands the inflow and outflow of dollars - that’s a sign of a good accounting consultant.