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accounting procedures. We call this kind of accountant “Asleep at the Wheel.”
you follow the tax code, you will learn that there are lots of incentives the government gives a business owner to grow their business and reduce their tax liability. But somehow, this information never makes it to the client. Over all the years I have been in business, and this includes taking one company public, I have never had one of my accountants come to me and say, “Terry, you should consider doing this because there are tax savings involved, and you will get to put more money in your pocket.” No, instead, I have had to read the tax code, find the tax incentives, and then ask the accountant if I can implement what I read, and they say, “Oh, yes, you can do that. “ We call these kinds of accountants “The Get-Along" accountants because they don’t want to rock the boat and prefer things just stay the same, and don’t want to get out of their box. Of course, if you have read this far, I am sure you are thinking the accountant you use is nothing like any of the examples I have mentioned. Well, good, I am glad to hear you think you have a fantastic accountant who is doing a great job, and you don’t think you are overpaying on taxes. They always have your numbers ready for you each month, and things have been great for many years. My only question is, have you challenged your accountant lately and
asked them what else they could do for you and your business? Have they discussed with you what is going on with the tax laws, or what the status of the new estate laws is in case something were to happen to you? Well, if you are not challenging your accountant and asking what they can do to help improve your profitability, then shame on you. Your accountant, attorney, and business advisor, as well as myself, are hired guns, and we work for you! You employ us to help you create value, and if we are not doing our job, then shame on us and shame on you for not asking. I bring this up about accountants, attorneys, business advisors, and myself because I believe in the value system. If we are not creating value, then we should go away. I believe in the value system so strongly that in every agreement I enter into with my clients, there is a clause that says if you feel that I or American Business Brokers & Advisors is not creating value, you can tell us to go away. At American Business Brokers & Advisors, we recognize and respect the fact that we are working with our clients’ livelihoods, and our goal is to enhance their situation. It is my hope that all the professionals you work with in your business are working to help create value for you and your business. –Terry Monroe
Operating a business is hard work, and there are a lot of moving parts to owning and operating a business. The main reason for owning and operating a business, besides the freedom factor, is to generate a profit and pay minimal taxes. Keep in mind, I have made two points. Make a profit, which entails having good numbers and knowing where you are at all times with income and expenses. But a true net profit is how much you get to put in your pocket at the end of the day. You can make a lot of money, but if you are paying too much in taxes, then you are defeating your objective to be in business. Most business owners are generally clueless when it comes to what is deductible and what is not deductible, and how the tax system works. I know because when I start talking taxes with a lot of business owners, their eyes glaze over. I am not a tax expert, but I do read tax books and have a pretty good idea of how our tax system works. I need to know this because it is my job to make sure I help my business owners put the maximum amount in their pockets after the sale of their business. What I have discovered over the years is that, generally, accountants do not come forward and offer their clients tax-saving strategies they can incorporate in their business to help reduce their tax liability. If
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