Usually in the movies someone is sitting in a doctors office on a chair on one side of the desk with the doctor sitting on the other side. The doctor looks worried, is fidgety and is searching for the right words to use. The patient (usually a man) calmly asks the doctor to “give it to me straight.”
The doctor replies, “Bob … I have good news and bad news. Which would you like first?”
Bob says, “Give me the good news Doc”
Doctor replies, “You have one week to live”
“What? One week to live! That’s the good news? What on earth is the bad news?, Bob shouts out.
The Doctor sheepishly admits, “The bad news is … I meant to tell you the good news last week”
Funny story, but unfortunately many clients of accountants, are victims of not being told the bad news early enough.
A good friend of mine is a management consultant. He is highly skilled and experienced and earns a very good living. Being self-employed he has to fulfill the usual compliance requirements for operating a small business. As you know, in Australia one of these requirements is to lodge a quarterly business activity statement (BAS). Along with lodging the documentation there is usually an amount of tax payable.
For some strange reason my friend hadn’t lodged his BAS’s for 12 consecutive quarters. For some strange reason his accountant didn’t remind or raise the issue with my friend not until one day four years later he had a difficult chat with his client. Needless to sy it was not a nice discussion – the outcome of which was a bunch of fines, interest on what was owing, and the balance of the tax payable – a truckload of money and a blemished record with the Tax Office.
A question for you … “Who is at fault … the client or the accountant? Legally its the client. Morally it maybe the accountant.
What do you think?
See you next post.