Are you calling, but no one is answering?
CPAs are good people, but their business model may be preventing them from delivering excellent customer service consistently, throughout the year. As they focus on filing tax returns, keeping your books up-to-date may be put on hold, including your monthly financial reports.
Are feeling you feeling the disconnect? Here are a few warning signs:
Missing In Action
When tax deadlines are upon us (March/April and September/October), most CPA's focus on tax work. Tax preparation is approximately 80% of their annual revenue. They'll be working 12+ hours days, including weekends, to crank through the high volume of tax returns. You’re accounting tasks have been put on life support until they can break free of that massive workload. To add to this, most CPAs take a vacation immediately following the last tax deadline of the season, further delaying their ability to catch up on other work.
The Hourly Rate
Most CPA firms bill by the hour. Have you ever been surprised by a bill where you know that hour was spent talking about your kids? You’re not alone. Most firms have billable rates with set realization rates on what percent of their hourly billings they need to achieve. They could write some of that time down, but you never know. Nobody enjoys getting an invoice for time that you can't see. If the ending price seems reasonable, no worries, but how many times has it not felt reasonable? There are other options make more sense.
CPAs have extensive training and charge accordingly. That's fair. The reason they are expensive, from an accounting or bookkeeping perspective, is their tax training has limited use in handling your books. You're paying for a Ferrari when you can do just fine with a BMW. CPAs take on this type of work to fill in their slow season and make their tax returns more profitable. That's not the best reason for you to hire someone. You want someone who has the right skill that you need and pay for that. Someone who can focus on "you" all year long.
Surround Yourself with Allies
Basis 365 isn't a CPA firm. Our business model is different. We provide your company with a dedicated outsourced accounting team that doesn't have a "busy season" and can maintain their level of responsiveness throughout the year. We partner with our customers and work daily to help your business grow. Hence, the 365 in our name.
Learn more by contacting us to schedule a consultation.
Photo by Ryan Riggins on Unsplash