Wednesday, October 17, 2007

I Don't Understand Some CPA Firms

I plain just don't understand some CPA firms.

I had the pleasure to meet today with an area company that is currently with another CPA firm. The office manager and I worked together in the past, so it was wonderful to see her after several years.

The State of Michigan needs money, so they are sending out self-audit forms on Use Tax. Use Tax is what you pay on something that you would have paid Sales Tax on. For example, you buy a book from Amazon. If you live in Michigan, Amazon doesn't charge you sales tax because they don't have a physical presence here. But if I bought the same book at Borders or Barnes & Noble, they'd charge me sales tax. So you are supposed to pay use tax. Voluntarily.

Anyway, the office manager asked for help from the current CPA firm. They seem highly uninterested in helping. That alone boils my blood.

So I started looking at what this current firm does for the entity. Among other things, they are issuing a quarterly compiled balance sheet and income statement. Why? Why?? The bank isn't asking for it. The office manager with a small amount of additional training can do this herself using QuickBooks.

I sat with her and the owner and said I see no reason for them to do quarterly statements with a CPA report on them. I recommend they do an annual statement, but the quarterly is a waste of money.

This all reminds me of the famous story of Henry Ford and the Model T - you can get it in any color you want as long as it is black. This CPA firm seems to take all clients and fit them into one standard mold of how things get done.

And that just isn't right. And I try not to do things that way.

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