Picking an accountant that you get along with is huge, but what happens when they notice something that’s… off… with your business’s numbers?
At CSI Accounting & Payroll, we’ve provided monthly accounting services to small businesses for 60 years. We’ve delivered plenty of reality checks, and we’ve also been told that we’ve been too blunt at times. Sure, your accountant’s tone and delivery matter, but sugarcoating can cost you big time.
Let’s talk about what that can look like by addressing these questions:
- What are examples of bad news that CSI’s accountants have delivered?
- How can sugarcoating bad news hurt business owners?
- What’s the difference between a direct accountant and a rude accountant?
Bad News That We’ve Delivered
CSI has 60 years’ worth of telling business owners where they’re struggling, but a lot of the bad news is the same. Usually, we need to say things like:
- Your personal lifestyle exceeds your earnings. This is preventing you from leaving sufficient cash flow in your business accounts.
- Your business spending exceeds your revenue.
- Your cash flow needs improvement.
- Your business won’t grow if you don’t invest any money into it.
- You’re trying to do too many things at once. Wear one hat: the owner’s hat. Delegate the other tasks and hats you wear.
- You’re not taking a reasonable owner's compensation.
- Your former accountant made a mess of your books.
- You can’t blend business and personal expenses.
- You need to prioritize consolidating and paying down your debts.
My team sees honesty as the best policy, but I’ll talk about how sugarcoating can hurt you in the next section.
How Sugarcoating Hurts Business Owners
You may be one of those business owners who doesn’t like getting bad news. Would you rather hear a toned-down version of it?
Let’s compare two examples. If your business was struggling to pay its bills, which scenario sounds better?
Blunt example: “So, I’m seeing that fairly often, you can’t pay your bills on time. The reality is that you might need to close your doors in a few months if nothing changes. I suggest XYZ.”
Sugarcoated example: “You’re doing okay! Maybe you could try XYZ if you want.”
Personally, I’d want the blunt version. Successful business owners can hear bad news without taking it personally and accept professional advice. Your accountant gains nothing by hurting your feelings. Let’s talk more about that in the next section.
Blunt Accountants vs. Rude Accountants
When your accountant delivers bad news, it’s because they care. They don’t want to see you get angry or sad, and they certainly don’t want to lose you as a client.
Let’s compare two examples again. Same scenario: If your business was struggling to pay its bills, which sounds better?
Blunt example: “So, I’m seeing that fairly often, you can’t pay your bills on time. The reality is that you might need to close your doors in a few months if nothing changes. I suggest XYZ.”
Rude example: “What are you thinking? You’re doing everything wrong. Your business is going to close because of your actions. Maybe that’s for the best. I can’t help you anymore.”
Once again, I’d prefer the blunt example. (Of course, most people probably would.)
Get Honest Advice, Delivered Right
At CSI Accounting & Payroll, we always aim for the blunt example over the sugarcoated or rude examples. While we feel that most accountants do too, sometimes they miss the mark. Could we be a better fit for you?
To see if we can be a good fit for your business, click the button below for a free consultation:
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