Empowering Yourself Through Questions

This week I got a lot of calls from family and clients about taxes

Which is amazing!

It's very important to reach out to whoever you can when you have something as important as a tax questions.

Now, I will forever advocate that that person should ideally be a licensed tax professional or tax attorney, but if you're dipping your toes in the water by reaching out to your trusted bookkeeper or family member - than go for it!

Just make sure that once you understand what they're saying to you, you then double check that information.

This is even a good idea with any advice you are given.

I've had to point to tax code a couple times when advocating for some of my clients because the CPA was giving advice that went against the law by more than a subtle or insignificant way.

I don't say that to shame or cast any doubt upon the industry; more so to highlight that they're human and our tax system here in the US is incredibly convoluted and complicated. If you go to a CPA that isn't deeply familiar with the industry you're in → that can happen.

I'm not saying it's common or usual but also know that it's okay to always get a second opinion if something doesn't seem right.

Which is also why it's so important to enter any conversation with an open mind and open ears. This doesn't mean you have to come away with the same perspective but it does mean you need to hear and understand what they're saying so you can make the best decision for you.

Mistakes will happen, but as a general rule, most professionals don't intentionally give bad advice. As a tax preparer - their reputation and level of ethics are paramount to the success of their business and they are ultimately there to help you with your taxes.

While I understand these things can be very emotional.. try not to be confrontational, aggressive, defensive or dismissive - even if that's what they come at you with.

Believe me, I know how black and white those in this industry can be but it's important to come to the table respectful and open.

I've experienced and heard terrible stories of accountants belittling and shaming people for simply asking a question or not understanding what's being said to them.

It can be rough and it can be hurtful.

However, they are not the ones responsible for your tax situation - you are.

So, its incredibly important for you to ask questions when something isn't making sense or you don't understand what they're saying.

I'll give you an example one of my clients shared with me a couple weeks ago:

Three of the managing shareholders and one of their investors went into the CPA to talk strategy and about buying out one of the shareholders.

The CPA completely dismissed their questions and kept answering with something that didn't even pertain to the question.

Luckily the investor is incredibly well versed in business so she wasn't about to let their question go unanswered and recognized that the answer didn't make sense for the question.

She said she had to go at it from about 5 different angles even though he continually mocked them until he provided an answer related to their question.

Again, she is well versed in business, has had multiple successful ones in her life and personally does all her families taxes by hand (she's a pen and paper kinda lady! mad respect for this incredible woman who has a heart of gold!), and through my almost 5 years of working with her she has never once asked a "silly" question and she really knows what she's talking about.

So of course, this made me really mad but I digress..

Now again, this is NOT to cast doubt on the accounting industry. It's incredibly stressful job, there are rarely many thanks and you have to field a lot of questions that a simple Google search could have provided.

Many are very black and white type people, which is ultimately a strength in the industry! Laws are laws regardless of your feelings around them. However, that can lead to rough conversations if they don't think your questions are valid.

All I can say is that if you have a question regarding your finances, bookkeeping or taxes.. it's a valid question. Possibly try Googling it first to see if there is a simple answer, but if that still leaves you perplexed or down a rabbit hole.. find someone to reach out to.

Ignoring it or continuing to do something you feel may not be right IS worse than possibly being shamed.

I'm not trying to condone any bad behavior or even saying it will happen- I'm just trying to show you that the absolute worst case scenario is they think you're dumb.

But is that true?

Or do they just have many more years of education and experience on the subject?

Could they do what you do to the quality and standard you've set for your business without asking a silly question or five?

It's okay to ask questions, even if it's considered silly, my friend! You don't know what you don't know.

Tax implications can have serious consequences that only you have to deal with at the end of the day so empower yourself to step out of your comfort zone.. ask questions and KEEP asking until it makes sense for you.

This doesn't not mean keep asking questions until you get the answer you want, though 😜 taxes are still taxes and you have to work within the confines of the law but you get my point.

While it's important for them to be patient and understanding, it's more important for you to take responsibility for your own financial literacy. Which means asking questions.

Everyone starts somewhere.. so start building that confidence muscle and ask the question, my friend. Don't expect judgment but step past it if it happens and empower you and your business.

You got this!

Do you have any bookkeeping or streamlining questions? Reach out! I’d love to hear from you.

audrey@thegracefulpenny.com