“If you keep doing what you’re doing,
you’ll keep getting what you’re getting!
One definition of insanity is to keep doing
the same things and expecting different results.”
Stephen Covey

Recently, I had a meeting with a prospective customer.

It seems that he is disappointed with his current CPA, and is looking to make a change. Last year when his income tax returns were completed, he had a sizable balance due. This forced him to borrow money to pay his taxes. He felt that there should have been a more proactive approach towards planning on the part of the CPA, and that his CPA should have warned him well before his returns were due that a large payment would be needed.

For years he had been paying his CPA by the hour. The final bill usually came within the $500 range. Although, one year he was not pleased when the bill was $850.

This scenario point to one of three situation:

1. The CPA routinely charges less than $1,000 for a tax return. In order to make enough money, this means that the CPA must prepare 500 – 1000 returns each year. That’s a lot of returns! When a CPA takes on that much work, she is unable to provide quality service and has little time to be proactive when it comes to tax planning.
2. The client assumed it was the CPAs responsibility to take the lead in tax planning matters. The CPA assumed that if the client was interested in tax planning, then the client would ask. Hmmm… what is it they say about assuming? (Note: In this paragraph I used the term “client”. That is because in these situations, CPA call their customers “clients”, and customers act like “clients”. More about that in another blog.)
3. Somewhere in the relationship, the client identified himself as a $500 client. The CPA treated him accordingly.

The prospective customer came to me hoping to find a CPA who was more interested in his business and more interested in providing proactive planning services. What’s interesting, though, is that when I asked his budget, he said: “I’d like to stay in the $500 range.”

LESSONS TO LEARN

To paraphrase Steven Covey:
If you keep paying $500 for accounting services, and expect better service – You’re crazy!

Communicate with your CPA. Let her/him know what level of services you want, and what your budget is. Be willing to pay for quality work and service. What is it they say about paying for advice? “Good advice never costs, it pays.”

Be sure you have properly identified yourself with your CPA. Every CPA firm should have a definition for being an A, B or C customer. And, they should be willing to share the criteria with you.

Be willing to change.

Never be surprised by your CPAs services or their bill. Get a fixed price agreement in advance.

Remember – You’re the customer.

HOW I HANDLED THE SITUATION

I provided the prospective customer with a proposal. The proposal had six different service levels, and each level was priced accordingly.