I'll Get My Accountant to Do That

By Action Coach Dave Beam

I was working with my new client, Tom, who had some organizational and financial challenges. One of the first things I ask clients like Tom to do is develop a cash flow budget. I asked him to organize a picture of the cash flow in his business on a simple spreadsheet showing historically where the cash comes from and where it goes.

His first response was “I don’t really know how to do that”. I explained that he could use his checking account statements, and divide the deposits and the checks and make some simple categories for deposits and for expenses. He then told me he didn’t know how to use a spreadsheet program, and I offered to sit with him and show him the basics he would need to complete the template.

Finally, he said “Why don’t I just get my accountant to do all of this stuff?”

I told him that though that seemed easier and more efficient, I really wanted him to do this initially. I asked him to trust me, and he reluctantly committed to the task. I stayed a little longer a showed him how to use the spreadsheet, and we even set up some of the in and out categories.

I returned the next week, and he had actually completed the last three months. I congratulated him on a job well done, and then asked “What did you learn from this process?” He was somewhat excited and told me that he had discovered some relatively easy ways to save several thousand dollars a month. He was shocked at some of the outgoing costs that did not make sense, and also started to understand the parts of his business that were generating most of the cash. There were several other observations, and he was excited to continue with the process.

I asked him a simple question. “Aren’t you glad you did that, and didn’t just get your accountant to put it together?”

What are you avoiding, that if you did it, might return some interesting dividends?