This scenario plays out all the time: a client goes out and buys a piece of equipment, a car, trades in an old one, or uses company money for personal expenses—without telling us. Sometimes they even invest in another business with company funds.
As accountants, we would always rather know too much than not enough.
In our world, oversharing isn’t a problem; it’s a solution. The earlier we know what’s happening, the better advice we can give.
Every Purchase Has a Consequence
Every time money is spent, it serves a purpose. But it also has a consequence. And sometimes, when the cat is out of the bag, it’s impossible to get it back in.
Let’s say you have a vehicle you use for work. You trade it in and now have a new vehicle with a loan payment. I see that payment show up on your books, but I don’t know the details:
- What did you buy?
- What did you trade in?
- Did you pay sales tax on the new vehicle?
- Had the old vehicle already been fully depreciated?
- Is the new vehicle over 6,000 pounds, qualifying it for special tax treatment?
- Do you now have more vehicles on your books than employees in your organization?
- Is the vehicle being used for a specific purpose, like catering or deliveries?
All of these things matter.These might seem like minor details to you, but for us, they can significantly impact your taxes, cash flow, and compliance. Without this information, crucial pieces of accounting are missing, and opportunities for deductions or tax benefits might be lost.
Why We Want ALL the Details
We would rather know EVERYTHING and filter out what’s necessary ourselves than know nothing and miss something important. If we don’t have the details, it’s like searching for needles in a haystack—and it’s incredibly easy for something critical to slip through the cracks.
This not only makes our job harder, but it also increases the risk of missed opportunities and errors in your financial records.
This isn’t about criticizing decisions. We understand that business owners are busy, and accounting isn’t always at the forefront of your mind. But these decisions have ripple effects, and knowing about them in advance allows us to help you avoid problems and make better choices.
That’s why part of our job is to educate you about the financial implications of your decisions and help you make informed choices.
Don’t Be Afraid to Ask Questions
It’s amazing how often your questions can lead us down different paths and different answers based on the circumstances.
We truly believe that it is our team’s job to educate you about the financial implications of what’s going on inside of your business.
If you’re making a decision to buy a half-million dollar piece of equipment don’t you think it makes sense to run it by your accountant to determine what the impact could be of that purchase that you might not have necessarily thought about?
There could even be a better way to structure how it was purchased that makes it more advantageous towards you! A great example of this is owner occupied commercial real estate.
All of these things start with a conversation and a lot of time we simply just don’t know what’s going on and when we do find out it’s too late to structure is so that it is advantageous.
How Early Communication Helps
One of our longtime clients, an optometrist, is a great example of why this matters. As his business has grown, he’s consistently looped us in whenever he’s thinking about making a purchase or hiring new staff.
Let’s say he’s come up with a new piece of equipment for him to both generate revenue from and that also creates a more efficient process in his business to see his patients. Before he buys, we go through everything together:
- How the equipment fits into his operations.
- Depreciation rules and how it affects his taxes.
- What he’s going to charge for the service the equipment provides.
- How many patients he thinks he can see with it.
The goal is for him to pay for that equipment with new services and so together we talk through the math.
From all of this we can give him realistic numbers on what the ROI on that machine could be.
Sometimes, the numbers work out, and we tell him to go for it. For example, we’ve had equipment pay for itself in six months. Other times, it’s not worth it—like when the machine would take decades to break even. These conversations are key to making the right decisions.
The more questions you ask the better.
Make More Money, and Keep More Of It
This is where the true value of having an accountant by your side to discuss things can really help you. Our goal is to help you make more money and keep more of it after taxes.
Don’t Wait Until It’s Too Late
If you’re not talking to your accountant regularly, you’re not getting the full value of what we bring to the table. And frankly, we don’t want to just be the person you call at tax time. We want to be your go-to for every major decision that impacts your money, your business, and your future.
We’re not asking you to check in with us to micromanage your business. But if you’re making a big decision, why not run it by us first? A quick conversation could save you money, simplify your finances, and prevent costly mistakes.
We don’t expect you to know every detail about tax law or depreciation schedules—that’s what we’re here for. But we need to know what’s going on so we can guide you.
Questions Are Always Welcome
Don’t be afraid to pick up the phone or send an email. Even a quick “What do you think about this?” can lead to better financial decisions. It’s amazing how a simple question can uncover opportunities you might not have considered.
So, the next time you’re about to make a move—whether it’s buying a vehicle, expanding your office, or investing in new tech—pick up the phone. Let’s talk through it.
Not only will it save you headaches later, but it’s also the part of our job we love the most: helping you succeed, grow, and make the most out of every dollar you earn.
Who’s in Your Corner?
How many times have you made a decision without stopping to ask, “Who can help me think this through?” Your accountant isn’t just here for the numbers—we’re here to support you, guide you, and make sure your decisions work for you, not against you.
If you want to know what it’s like to have an accounting team that’s truly in your corner, read more here: Why Every Business Needs an Accounting Team in Their Corner.
It’s about more than tracking expenses. It’s about having someone who’s invested in your success, helping you make smarter, stronger decisions every step of the way.
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