Category Archives: accounting issues

Loving the financial reports

A good friend accuses me of reading bank old_account_ledgerstatements for pleasure.  It’s true!

Financial reports give us a unique picture of our activities.  As we go about our daily activities in business we are taken up with the immediacy of talking with customers, and with the focus on delivering our special products or services, and paying the bills, and dealing with the landlord, and … and … and attending to all the myriad details which are part of running a business.

Financial reports give us a totally different perspective on all that daily activity. Continue reading Loving the financial reports

Tax coaching: how it works

Anwar-218x300My guiding theme with clients is empowerment: supporting the client to move beyond negative and even crippling stories about money, and come into a positive relationship with managing their money where they feel they are steering things from a place of confidence and pride.

Often people are prompted to come to an accountant for their tax.  But more and more of my clients don’t want me just to do it for them. Many people for whom their business is their spiritual path recognise that their growth requires them to address their difficulties with money.  One area which is often difficult for people is tax returns. Continue reading Tax coaching: how it works

Seasons of the Accountant

fourseasonsIn the Accountant’s Cycle of the Seasons, there’s four distinct seasons.

The hottest is the long 4 months from October til 31 January – the Tax Season, when many people not fortunate enough to have a loving relationship with their accountant become gibbering wrecks, haunted by the ghastly spectre of the Tax Man. The Tax Season can be capricious: an apparently comfortable situation can suddenly be devastated by a looming tax bill. Or the gloom of a huge tax burden can suddenly evaporate when the error in the spreadsheet is located.

The Tax deadline of 31 January passes.  And then … suddenly … on 1 February comes Winter. For 2 whole months all accounting dies a death while the polite world heaves a sigh of relief and catches its breath, in preparation for…

The End of Year season – that slightly sweaty period of a month either side of the 5th of April, the end of the Financial Year. This has 2 halves: the first half is all about “OMG have we done what we needed to before the end of year?” While the second half is all about “ah – a fresh start; let’s make good resolutions!”

And last in the Cycle of the Seasons comes Summer – not only does accounting stop but most commercial activity stops too. My clients find their turnover reduces to a trickle, our attention is taken up with festivals, our bodies cry out for sun. Greenery triumphs, and we gambol and carouse for weeks…

… until about now, when once again the Tax Season is upon us, and the cycle starts all again.

The Pleasures of an Intimate Accountant

me in conversationAs your accountant I get to know the intimate details of your financial situation. But there’s also another type of intimate connection I enjoy even more with my clients.

One of the richest aspects of accounting for me is that being someone’s accountant brings me into a very intimate connection with that person.  In British (and Australian) culture, talking about personal finances is often uncomfortable – it’s not a topic of polite conversation.  Money is something we usually only discuss in detail with one’s spouse, or perhaps one’s parents or adult children.

In this way an accountant is in a similar position to a doctor: the professional examination involves revealing “warts and all”.  Obviously the accountant can’t do their job without all the relevant information – but I always feel a little frisson at the moment when the client starts to tell me the detail.  It is, in a psychic sense, very much a moment of “undressing”.

I deeply value my clients revealing themselves to me in this way. I feel it is a very vivid demonstration of trust.  Even though I know most people routinely interact with professionals of many sorts who require us to share our “secrets”, each time a client does this with me I feel it is special, and deserves acknowledgement, and respect.  It really is a relationship of vulnerability: my client is vulnerable to the extent to which I caringly respect what they have confided.

But in my approach to my work this intimacy and vulnerability is not just one way.  All my clients are people for whom their work or their business is a creative expression of their soul – just as my own business is for me.  Thus although there is a client-practitioner relationship, there is also another level of deep mutuality:  we share values around authenticity and creativity, and around the challenges involved in being true to ourselves and earning a living.

Sometimes this comes out in snippets of conversation where we discover a shared passion around some element of business operations.  Sometimes it comes out in drawing on personal growth principles to help us address an issue in the business. Sometimes I need to tell them I am triggered by aspects of their profession or their business.  Sometimes it will come out in what appears to be a rambling natter about something else – which then suddenly and unexpectedly crystallises for the client a vital aspect of their business focus.

I share with my clients a vigorous belief in disclosing all this personal stuff, in allowing the emotional and the seemingly-unrelated.  Often the wisdom of our lives comes out to affirm the other, to support the other and to validate the path we are already on. Together we hold a trust that the connection between us is right, that it is powerful, and that our connection generates what is of mutual value to us no matter what it’s content looks like.

This is what Kimaya Kroller-Younger calls Radical Intimacy. The attempt to accept all of what is there in oneself enables us to be more deeply with ourselves.  This in turn enables us to be deeply with others.  Of course we get scared, of course the acceptance is never complete.  But the edges where we stop are also moments to honour the courage it takes to go right up to the edge.  And often that edge can shift simply when it is accepted – by ourselves or by another.

Having created an intimate openness, our work together can then proceed as a collaborative project. They need their tax done, or their admin dealt with, or to know how their profit is going – whatever it is.  I ask if they want to get skilled up themselves, or whether they just want it taken care of.  The project can be anything, and of any duration.  Then we discuss what needs to be done to complete the project, what our skills and respective time constraints are, and then decide who does what and when.

The work proceeds well because we have created an intimate connection.   We have each brought ourselves present – not necessarily in our entirety but very much authentically in the moment.  Our beings resonate intimately with each other – and this enables a smooth working-together.

Last week I had several days which seemed to be a continuous dance of wonderful encounters with clients interspersed with work on collaborative projects.  By the end of the week I felt so full, so blessed to be in connection with such rich beings, and blessed that I have the opportunity to use my abilities in our mutual service.

Truly – the pleasures of an intimate accountant.

“Doing everything yourself” vs. “Ensuring everything gets done”

There’s so many different aspects of a business – sales, marketing, admin, the technical ability or skill to deliver the core service, finance, design, and so on.  Some of these areas require exactly the opposite skills required for other areas – for instance sales requires empathy and people skills while finance requires a logical mind and abstract skills.  Its a very rare person who can bridge all the areas required.

But all these aspects of a business have to be attended to.  As a result, many business owners put huge pressure on ourselves about the areas we are not good at: we can see that things need doing but we struggle to do them. So we feel guilty about not doing them, or worry about them and do nothing, or beat ourselves up because we “should” be able to do it, or blame others for the poor performance, or get frustrated or angry that the stuff has to be done at all, or any number of other responses.

None of these responses really help, of course.  They’re just perfectly natural responses to feeling jammed into an impossible situation where something needs doing, you’re responsible for it, and yet you lack the resources to do it.  Awful!

To help my clients with the tensions around all this, I often find myself drawing attention to the business owner’s role as director of operations.  The shift here is to acknowledge that, yes, the owner is of course responsible for everything – but that responsibility is more specifically to ensure everything gets done.  This is NOT the same as “doing everything yourself”.

“Doing everything yourself” is like a rod for your own back.  “Doing everything yourself” is part of the stoic old-style grit-your-teeth model of masculinity – which carries over into the world of small business no matter what your gender is. It assumes that we are all isolated units, each entirely self-sufficient, and that we are judged by how capable we are of living up to this unrealistic and even cruel ideal.  In this world, responsibility is a massive burden that can kill.

“Ensuring everything gets done”, on the other hand, is a softer more humble approach yet it also implies the power to take action.  It assumes that we are limited creatures, who have strengths in some areas and are weak in others.  It’s part of the new spiritually-oriented or values-driven entrepreneurship which holds that we all have a unique contribution to offer, and that business is a collaborative effort which is a vehicle for each of our unique contributions.  In this world responsibility is empowerment to create the world of our dreams.

Ensuring everything gets done means getting other people to fill in the gaps where you’re not good at stuff.  This usually costs you money – though not always:  all sorts of creative arrangements are possible.  But whatever the exchange is, the pay-off can more than offset it – which is the whole point of synergy through collaboration.  If you get other people who, in supplying that service, are also pursuing their own unique contribution, there’s 3 returns:

  •  Bottom line: Every aspect of your business functions as it should.
  • Personal affirmation:  You get the space to pursue your unique contribution as well as the satisfaction of seeing you are a good business director.
  • Community celebration: Your own values, and the values of everyone involved, are affirmed and celebrated.

Its so easy, of course, to fall into “doing everything yourself”.  Thank goodness, these days there’s more and more support  for “ensuring everything gets done”!

Relationship wisdom we can learn from Accounting

Accounting systems make the very sensible assumption that we are human – which means that mistakes are inevitable.  No real human ever does things perfectly. Entry errors, mis-readings, absent-mindedness, distraction all actually happen – not because anybody intends to make mistakes but just because Life is Life and shit happens.

So one of the most powerful steps in the accounting cycle is to check for errors.  The process of “reconciling the accounts” or “doing a reconciliation” involves using a third party’s record of transactions to cross-check your own records.  Most commonly the third party’s records is a bank statement, but accountants will also use the records of customers, staff and suppliers – any party which has dealings with the business and which has a separate or ‘third party’ accounting system.

The reconciling process allows us to locate mistakes, identify how they arose and then fix them.  Because accounting systems get reconciled there is no penalty for mistakes. People don’t get blamed.  Mistakes just get located, identified and fixed.

The same pattern is relevant in relationships as well.  Relationships involve humans, and so inevitably mistakes will be made.  I will hurt you, you will invade me, I will disregard you, you will insult me. Very seldom are these things intended. Mostly we intend to do the best by the other person.  So when I make a mistake it’s not because I’m stupid, or I intended to hurt you, or I don’t really care about you, or any one of the million reasons you can make up.  I made a mistake because I’m a human.

What Accounting teaches us is it’s not important that the mistake has been made.  That’s just inevitable.  What’s important is that there is a system in place to catch the mistakes and fix them.  In other words what’s important is doing the reconciliation.

The reconciliation process involves a third party to me – which in the case of our relationship is you.  You, or your actions, alert me to a mistake having happened. Something’s off in our interacting, and that’s a signal that stuff needs to be attended to.  So we need to identify what the mistake is, and then fix it.  We can do this without blame for the mistake happening in the first place.  Removing blame is a hugely freeing step, which allows us to have much more clarity, and to work together to identify the mistake and to work out ways to fix it.

There’s another possibility here, though: it might not be my mistake.  I’ll use Accounting again to clarify.  Those third parties whose records we rely on to reconcile our own accounts also have their own accounting systems, and so they also make mistakes.  Most banks put a little notice somewhere on your bank statement saying something like “please check all these transactions to make sure you agree with them.”  This is not just marketing fluff – it’s a core part of their own accounting system.

So when I’m doing my bank reconciliation I’ll find a mistake. I check and re-check my own system, using the bank’s records, and after a few iterations I find that the mistake is not mine but the bank’s.  Bingo – I have to tell the bank.

The same possibility occurs in a relationship.  I may feel you’ve done something terrible: I feel really hurt, and so on.  But the only thing we can say with certainty at first is that a mistake has been made.  If I’m reconciling my accounts I tend to assume that the mistake is made by me.  When I’m feeling hurt in a relationship I tend to assume the mistake has been made by you.  But this may not be so.  It takes the first step of a reconciliation process – a back-and-forwards of active listening without blame – to identify exactly what the mistake is.  Only then is it possible to agree on how to fix it and carry out the fix.

Not only does Accounting show us that mistakes are inevitable.  It also shows us that reconciliation is normal.  It doesn’t mean there’s anything wrong in a relationship. Reconciliation is just a normal, routine and standard part of any good relationship.

I love it that there is such similarity between accounting systems and human relationships.  It affirms to me that The World is a fractal pattern, which occurs everywhere.  We are inside the pattern, the pattern is inside us, and the pattern occurs in its entirety in every single aspect of what exists.  Everything is intimately connected.