I have a client who needs a new CPA.
Part of the reason is technical. They are in a narrow niche of the construction industry but have a general purpose CPA. They need someone with the experience to answer questions about how to allocate overhead on a cost-plus contract with the county so they aren't leaving money on the table. And similar questions.
But they said something interesting as we were talking about it. What they said was
"We did pay ourselves more in salary this year. But we're nervous about doing something out of whack when it comes to the PPP and EIDL money."
Certainly your accountant should be able to answer your questions about all that. But most of all they should keep you from feeling nervous. Not because they're all upbeat and blowing smoke. But because they're assessing your situation proactively, and giving you advice that you can follow to know you're doing the right thing. That's what keeps you from being nervous.
Many of you are those professionals.
If you've been in the business for a while, you've seen that you used to provide value by being the keeper of the sacred wisdom; much like ancient priests were believed to be the only ones who could communicate with the almighty. But now ordinary people have more and more access to that wisdom - or at least knowledge - that you spent years developing. So you may feel like your value-add is eroding.
But your real value goes beyond providing knowledge or even wisdom. It's in helping your clients not just do well, but feel how well they're doing. In healthcare this is called bedside manner and it's been scientifically proven to actually improve outcomes.
Despite the proliferation of technical knowledge available on the internet, clients of a professional usually don't know what they don't know. That's a cute phrase that means they don't know the limits of their understanding. And this makes people nervous - at least it does for smart people (see the Dunning-Kruger effect). What we want in a professional is someone who acknowledges what we can learn on our own if we want and helps us put that knowledge to use in the proper context.
A client of mine who is a professional (both a lawyer and a CPA) told me this story. Someone they’ve done a lot of work for over the years has a race car that they want to classify as a side business and put into a separate LLC. They wanted to know why they should pay an attorney, when they can go online and file the LLC themselves. Besides the value of their personal time, the answer is that just filing the LLC won't get them the protection they think it will. The liability protection they're looking for doesn't come only from correctly filled out paperwork. It comes from an operating agreement that's properly crafted for their specific situation. And that's something an online service can't deliver.
When you're ready for a professional who can serve you properly, here's what I suggest.
- Find someone who can translate their technical knowledge and jargon into language that you understand. They should be a translator and not make you learn what their terminology means.
- Find someone who's proactive and not reactive. That means they'll not just answer all the questions you're asking, but answer the questions you don't know you should be asking.
- Find someone who doesn't charge by the hour. You're not buying time, you're buying expertise. You should find a payment arrangement where you feel there's a relationship so they'll be there when you need them with some familiarity of your situation.
As companies mature, they are more likely to see the value in paying for expertise they don't have in house. Makes me wonder which is the cause and which is the effect. This changes their relationship with CPAs and attorneys. But also includes other professionals like HR consultants, bankers, insurance providers and coaches.
Picture Credit https://www.koontzassociates.com/
