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MICHAEL C. THOMSETT

The Accounting Dilemma: Sorting It Out

Communication between accountant and builder can be difficult and frustrating. You need some simple guidelines for improving communication to turn this administrative burden into an aggressive and effective marketing relationship.

  • Who is your accountant? You should know who the individual is in order to work well with your accountant, and to ensure that you're getting the help you need and deserve.
  • What is the accounting role? If you know what your accountant is expected to do for you, then you have the means for determining how well that relationship is working. If you haven't defined the role, you have no way to tell. (If you don't know where you're going, any road will get you there.)
  • Distinctions: bookkeeper and accountant. Many builders simply don't know the difference in these roles. By understanding a few important dividing lines, you will better understand how these roles work together and with the builder.
  • Questions you should be asking. What do you need to know, and what should you be asking your accountant?
  • Answers you should be getting. Is your accountant serving you well? You want to be sure your accountant is giving you all that you need, or you should find a new accountant who will work with you.
  • Is your accountant working out? If not, then what? Are you happy with your accountant? If so, how can you continue your success? If not, how do you find a new accountant? What criteria should you use to locate more effective help?
  • The accounting program: keeping it simple. Simple is always better. The widespread belief that higher complexity in the work you do also requires a more complex system is not necessarily true. It is more effective to export simplicity to higher levels of work and reporting.
 
         



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