Business Owners: Remove the Pineapple from Under Your Arm

Business Owners: Remove the Pineapple Under Your Arm

Courtesy of my colleague Maria Gutierrez, I recently learned that in Venezuela there is a saying “Eres una pi?a bajo el brazo” which translates to “You’re a pineapple under the arm” or you are a pest and super annoying.?

Most business owners feel this exact way about accounting and tax compliance and who can blame them given the plethora of rules, software programs, filings, penalties, and deadlines.?It’s really easy to get bogged down by accounting or taxes so how do you get rid of the accounting pineapple under your arm?

Changing The Perspective

Many business owners that come to us for help are pretty down on their accounting function.?They’ve been disappointed by a bookkeeper, accountant or themselves and they are annoyed with this whole piece of their business. ??When we begin discussions, we frequently learn that the business owner has not invested in their accounting – they’ve been using the cheapest bookkeeping solution (or been DIY’ing it), spent very little on tax preparation and referred to Google for most business advice.?Frankly, they have gotten exactly what they paid for and now they are paying the price.

The first thing we have to work on is changing the business owner’s mindset so that they view accounting as an “opportunity center” rather than a “cost center.”?We provide information to help the business owner to see the long-term value associated with a solid accounting function – things like:

·???????Improve cash flow

·???????Complete proactive tax planning (and save tax dollars)

·???????Use financial reports to understand profitability drivers

·???????Make better business decisions (hiring, purchases, expansion, etc.)

·???????Obtain bank financing

·???????Mitigate risk of loss

·???????Eliminate penalties and unnecessary expenses

·???????Exit successfully

·???????Achieve personal financial goals

Business owners must think about value differently – it’s not the money that is leaving the bank account at this very moment for professional fees, rather the combination of task alleviation and business advice that will pay dividends and propel them forward.?

This same philosophy should be applied to every time of professional needed in a company’s business.?Here’s our guide to building your Circle of Key Advisors .

Systematizing the Processes

It’s easy for accounting and tax tasks to get out of control as there is often a lot to manage.??The real pineapple is often that business owners haven’t taken the time to systematize their accounting processes – nothing is written down, repeatable or automated.?Worse yet, accountability is absent.

The starting point is to walkthrough each accounting cycle in the business – revenue, purchasing, payroll, month-end close, etc. - so that the processes are documented, software usage defined, and responsibilities delineated.

When we are leading this effort, we are very curious.?We ask lots of questions so that we can truly understand motivations, desired end results, problematic attitudes, inefficient technology, etc.?Many times, business owners are doing things the only way they know how.?It’s up to us to paint a picture of how things could be, cast a vision for a better reality and assist with implementation so that operations and accounting are consistently aligned.

Our end goal is to have the following on-hand:

·???????Accounting policies and procedures

·???????Established frequencies and internal deadlines related to customer invoicing, vendor payments, payroll cut-off

·???????Checklist of all major accounting/tax deadlines

·???????Tech Stack Outline

·???????Accountability Chart

Hiring the Right CPA

Major news flash - not all CPA’s or CPA firms are the same – and the wrong CPA can be a huge pineapple for a business owner.

So, how do you know if you’re talking to the right CPA? Here are some questions to ask:

·???????What size businesses do you serve?

·???????Do you have any clients in my industry?

·???????What services do you recommend for me and my business?

·???????What services will I need from you as my business grows?

·???????How will you add value to my business?

·???????What is your perspective on technology and automation?

·???????Who can I expect to work with at your firm?

·???????What can I expect in terms of communication?

·???????How will you measure your effectiveness as my CPA?

·???????How does your firm bill me?

·???????Can I speak with some other clients that you have helped?

·???????What is your personal business philosophy?

Some other considerations might be:

·???????Does the CPA require the use of certain accounting software, such as QuickBooks, Xero or Intaact?

·???????Can the CPA connect the business owner to other key advisors?

·???????How much longer does the CPA expect to be practicing??

·???????What is the firm’s reputation? ?Do they have positive Google reviews?

Also, be sure to check out the CPA’s website, blog, social media posts and other marketing collateral to determine alignment between the businesses and owners.?

Here’s a link to the MBG Recipe for Success so you can learn a bit more about our philosophy - https://lp.mbgcpa.com/recipe-for-success .