One November afternoon we met with a client for an end-of-year strategy session. He started a practice from scratch and was finally reaching a point of significant profitability. We were delighted to end the meeting on a high note, with our client saying, “I’m glad I hired you.”
The funny thing is, we had just told this client it was indeed confirmed that the $50,000 tax liability we had projected four months earlier was the correct amount due for the year. Because of strategic planning in his early days of practice ownership, he had been carrying forward a loss for the past few years and had zero tax owed during this time. This was the first year he did not have that loss to rely on. His practice was now profitable enough that his tax liability was higher than many would be comfortable paying.
We knew this would be the case. We had managed his books, analyzed his numbers, and projected this number for him in July so he could start saving and be prepared. And that’s just what he did.
We told our client that he had to write a check to the IRS for $50,000, and he was still able to say, “I’m glad I hired you.”
Every client, every time.
This is what we want to hear from every client who partners with us. We want them to be prepared, to know what their numbers are, and to understand that taxes are just a result of the events of the year. Our clients should feel confident in the business decisions they make for their practice.
Clients trust us to deliver critical information in a format they can understand and immediately implement. They expect us to prepare them for the financial ups and downs of practice ownership so they can focus on what’s important – treating patients and making their practice a vehicle for financial independence.
We do things differently.
Traditional CPA firms meet with clients once a year, after the tax return has been prepared. This is backward thinking; it’s too late to do anything at that point.
Tax planning should never be the entirety of your practice’s economic strategy. Practice owners need to partner with proactive advisors who can help them strategically plan for the year before it happens.
Other firms also place a heavy importance on bookkeeping. We get it. It’s crucial to have accurate information in a timely fashion. But more important than that is what you do with the numbers. We take our clients accounting to another level by transforming their financial data into business intelligence reports. Accounting is an excellent foundation, but you have to keep building up if you want to go anywhere.
We see the full picture.
The business-side of your practice is more than just what goes in and out of the bank account each month. There are a plethora of metrics and non-financial components that can impact your practice’s bottom line. Your human resources, practice stats, marketing endeavors, etc., all require oversight. We work with you to ensure you’re maximizing your ROI in these areas and remaining compliant so that you’re not later penalized for something you were unaware of.
Your practice is one of the most significant investments you’ll make in your lifetime. Practice owners need a strategic business partner to help them navigate the stages of conceptualizing, establishing, growing, and managing their practice. Building an executive team capable of identifying areas for improvement, making strategic recommendations, and acting as a sounding board to give the green light on smart decisions is crucial to success.
Enterprising practice owners partner with Parkhurst. Who is on your executive team?