4 Hard Truths Your Accountant Should Tell You (But Probably Won't)

Are you getting blank stares when you ask your accountant questions? Do your tax returns get filed year after year with no strategic advice? 

What if the most valuable service your accountant could provide isn’t what they’re doing, but what they’re not saying?

If your accountant isn't having difficult conversations with you, they're probably not doing their job.

At Patrick Accounting, we’ve spent over 20 years helping business owners thrive by having the conversations most accountants avoid. 

In this article, we're sharing four hard truths every business owner needs to hear, especially if you want your accountant to be more than just a compliance partner.

Why These Conversations Don't Happen Enough

Most accounting firms treat delivering your financial statements as the finish line, not the starting point.

They hand over your reports, file your taxes, and call it done. That’s like a doctor handing you test results without explaining what they mean or what you should do next.

The real value of an accounting relationship comes from the conversations that follow the numbers—the strategic discussions about what's working, what isn't, and what needs to change.

Unfortunately, those conversations rarely happen because:

• Accounting firms are focused on compliance, not consultation
• Business owners don't know what questions to ask
• Both sides assume the other doesn't want to go deeper

The result? Missed opportunities, repeated mistakes, and business owners operating with gut feelings instead of reliable data.

Hard Truth #1: You're Not Looking at Your Financial Statements

This is one of the most common issues we see: business owners who receive financial statements every month but never actually use them.

We deliver detailed reports with insights and analysis. We prepare tax returns and walk through key points. But all too often...crickets. No questions. No follow-up. The reports are filed away and forgotten.

Why This Happens

Most business owners fall into one of these categories:

1. You don't understand what you’re looking at. Financial statements can feel like a foreign language if no one's shown you how to interpret them.
2. You’re too busy. There's always something more urgent than reviewing last month's numbers.
3. You aren’t interested or concerned. As long as there's money in the bank and the business is running, you assume everything is fine.
4. You don't know what decisions to make with the information. Even if you do understand the numbers, you’re not sure what to do next.

Why It Matters

Your financial statements are your business’s scoreboard. They tell you if your strategies are actually working. Are your marketing efforts paying off? Is your new hire generating results? Are your labor costs getting out of control?

Without regularly reviewing your numbers, you're running your business based on gut feelings and assumptions instead of data.

What You Should Do

• Ask questions. Your accountant should explain things in plain English.
• Set KPIs. Work with your accounting team to define measurable goals tied to your numbers.
• Review numbers monthly. Make it a habit, not an afterthought.

Hard Truth #2: Your People Are Holding Your Business Back

This is probably the most difficult conversation we have with business owners: Sometimes, the people you trust most are the biggest obstacles to your business growth.

The Family Member Dilemma

We see this all the time. Your sister-in-law is doing your bookkeeping. Your spouse handles payroll. Your mom manages accounts receivable. You trust them implicitly, and they've been with you since the beginning.

But trust and competence are not the same thing.

In fact, we've worked with businesses where family members were:

• Creating profit and loss statements that were seven pages long because they didn't know how to set up proper account categories
• Taking 12 hours every week to process payroll for a small team
• Missing years of depreciation deductions because of misclassified assets

The 90% Problem

The trickiest situations involve people who get 90% of things right. They're reliable, loyal, and handle most tasks well. But that 10% gap? It's often the most critical stuff.

Maybe they:

• Don't understand tax implications of business decisions
• Can't handle advanced bookkeeping concepts
• Refuse to adopt new systems or processes
• Get defensive when you try to make improvements

What You Should Do

We know this is hard. These people aren't just employees; they're family. They've been there for you. You feel loyal to them.

• Evaluate impact over intent. Loyalty doesn’t make up for costly mistakes.
• Provide training or support. But don’t avoid necessary changes.
• Consider realignment. Some roles may need to change or be filled by someone new.

Hard Truth #3: Your Technology Dreams Don't Match Reality

Every business owner we meet wants the latest and greatest technology. They see what the big companies are using and think, "I need that for my business."

The problem? You're trying to run before you can walk.

The Shiny Object Syndrome

We work with a lot of restaurants, and this happens constantly. A restaurant owner will see a demo of Restaurant 365—which is a fantastic system—and immediately want to implement it.

But when we look at their current setup, they're still using a basic cash register. They don't have inventory management. They use spreadsheets for bookkeeping.

Jumping from that to a comprehensive restaurant management system is like trying to learn calculus when you haven't mastered basic math.

What Usually Happens

When businesses try to implement technology they're not ready for, one of two things usually happens:

1. They waste a lot of money. The system is too complex, no one knows how to use it, and it never gets properly implemented.
2. They create more problems. Instead of streamlining operations, the new system creates new issues.

The Better Approach

• Start with the basics. Make sure your fundamental processes are solid before adding complexity.
• Invest gradually. Move up the technology ladder step by step, not in giant leaps.
• Consider your people. Can your team handle more sophisticated systems? If not, either train them first or hire people who can.
• Get proper implementation support. Don't just buy software and hope for the best. Invest in training and support to make sure it's set up correctly.

Hard Truth #4: Your Processes Are Broken (And You Don't Know It)

"This is just how we've always done it."

If we had a dollar for every time we heard that, we could retire early.

Processes that worked when your business was smaller may now be costing you time, money, and opportunities. And you’ve probably been too close to notice.

What Would You Do if Payroll Took 12 Hours?
One Company's Wake-Up Call
We once had a client tell us it took them 12 hours every week to process payroll. Not 1-2 hours. Twelve!

After reviewing their system, we found:

• Data was being re-entered multiple times.
• Calculations were manual.
• Time tracking was unreliable.
• Systems weren’t integrated.

After implementing new processes and tools, we got that down to about 2 hours per week, giving them 10 hours of productivity back.

Why This Happens

You don't know your processes are broken. If you've always done things a certain way, it might not occur to you that there's a better way.

• "It's not that bad." You've adapted to inefficiencies, and you don’t know what “better looks like.
• Change feels risky. Even if it's inefficient, you feel change might make things worse.

What You Can Do

• Time track every task. You might be surprised.
• Question everything. Why do you do things the way you do? Is there a more efficient way?
• Get an outside perspective. A fresh set of eyes can often reveal blind spots.
• Be willing to invest in change. Better processes often require new tools, training, or people.

The Questions Every Business Owner Should Ask

If you're not sure how to start having better conversations with your accountant, here are two questions that can open up valuable discussions:

Question #1: "Was there anything else I should’ve done to reduce my taxes?"

This simple question can reveal whether your accountant is being proactive about tax planning or just reactive about tax filing.

If your accountant says "No,” ask them to walk you through what was done. If they can’t, that's a red flag.

Question #2: "Is there anything my team is doing that we should do differently?"

This question gives your accounting firm permission to share honest feedback about your people, processes, and tools.

The goal isn't to blame anyone. It's to identify areas for improvement that could benefit everyone.

Why Your Accountant Isn't Speaking Up

If these hard truths resonate with you, you might be wondering: "Why hasn't my accountant told me this stuff?"

Here are the most common reasons:

1. They see their job differently. Many accounting firms view their role as purely transactional, processing your books, filing your taxes, and sending you reports. They don't see business consulting as part of their service.
2. They're afraid of overstepping. Some accountants worry about giving advice outside their area of expertise or damaging the relationship by being too direct.
3. You haven't asked. If you consistently accept deliverables without questions, your accountant might assume you're happy with the current arrangement.
4. They don't have the expertise. Not all accountants offer business advisory. Some are great at compliance but not comfortable with strategic discussions.

How to Create a Better Dynamic

Want a more proactive, strategic accounting relationship? Try this:

• Set expectations upfront. Let your accountant know you want feedback and strategic advice, not just compliance work.
• Ask follow-up questions. Ask what the numbers on your reports mean and what you should do about them.
• Create a safe space for honesty. Make it clear that you value candid feedback, even if it's not what you want to hear.
• Work with the right firm. If your current accountant can't or won't provide strategic guidance, it might be time to find one who will.

Why Honest Financial Conversations Drive Growth

Running a successful business means making hard decisions based on the right information. And that starts with candid conversations about your numbers, your people, your processes, and your technology.

Your accountant shouldn't just hand you reports. They should help you interpret them, challenge assumptions, and guide smarter decisions.

The businesses that thrive are the ones where owners and accountants work together to identify problems early, act fast, and keep improving.

If your accountant isn't having those conversations with you, they're not doing their job.

Want to see what it's like to work with a firm that tells you what you need to hear, not just what's easy to say? Explore the Patrick Accounting client journey.

If you're ready for an accounting partner who doesn't shy away from the hard truths, let's talk. 

Because sometimes, the conversation you don't want to have is exactly the one your business needs most.