Concierge CPA February 2019

February 2019

8221 Brecksville Rd, STE 205 Brecksville, OH 44141

Borbala@ConciergeCPAs.com

(440) 340-1030

ConciergeCPAs.com

Are You Falling Between Two Stools? The most frustrating thing is getting pulled over when you are already running late. This is exactly what happened to me recently. One afternoon, I was on my way back to the office, listening to music and enjoying my ride, and out of nowhere, I see those dreaded red and blue lights in my mirror. stools. There is a need for all types of services. Some people offer routine services for cheap and

make good money. Others offer custom services and charge more for it. The only scenario you want to avoid is working on custom projects and not charging for them. ” I prefer not to work on repetitive tasks. It’s a personal choice, but I find complex and involved projects much more rewarding. The only problem is that if I lose money on projects I like to do, then soon I won’t be able to do what I like.

I had a good few years without any traffic incident, so getting pulled over made me nervous at first, but then I became frustrated and angry with myself for not being more careful. After the quick adrenaline rush, I calmed down and realized that getting a ticket was not the end of the world. The stop went smoothly, and after a short delay, I was on my way back to the office. I was going to just pay my ticket and end the story there. A few days later, I received a letter from an attorney who offered to represent me for a very reasonable flat fee. He promised to take care of everything, and I wouldn’t even have to take time off from work to appear in court. I wasn’t expecting to get much for my money. Honestly, I decided to hire this person because I was interested in finding out what kind of service he could provide for such a low price. I work with a good number of attorneys, and I know that good legal service doesn’t come cheap; you usually get what you pay for. Was I satisfied with the results? I can’t really judge my experience. I assume I got some benefit because he went to court and I didn’t get any points on my driving record, but I never spoke to the attorney directly. All communication was automated or went through a receptionist, and I don’t believe the attorney spent more than 10 minutes looking at my case. At the end, I paid the fine, the case was closed, and I was left with one last question: How in the world does this guy make money? How is it possible to hire employees, pay for rent, utilities, and advertising while charging such low prices? Well, I was curious enough to sit down and do some calculations. I ran a few profitability scenarios, and I realized that this guy may make more money per hour than I do on some much more expensive projects.

Unfortunately, too many business owners make this mistake, especially when they start out. For a while, it is possible to get by with working a lot and not charging realistic prices, but it is not sustainable and prevents business owners from growing. What’s even worse is that there are business owners who don’t even know they are losing money on certain projects. Income keeps going up, the owner is happy with the trend, but the employees are stressed out, profits are declining, and the business becomes unsustainable. How can you avoid falling into this trap? The best solution is having timely and accurate financial data and someone who you can sit down with and discuss what the numbers mean. Give us a call if you would like to find a solution.

–Laszlo Szilagyi, CPA

I talked to Borbala about this question and, as always, she simplified the problem for me: “Just avoid falling between two

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