As CPAs, we tend to see the world through a different lens. For a long time, it seemed to me that every business owner made high six to seven figures, had multiple homes, and sweet cars. As a tax guy at EY and then at my firm, that's what I saw. We worked with very successful people and businesses as clients, but that population was not representative of the average or norm.
It certainly isn't indicative of the current reality. Regardless of previous success, businesses are hurting. To put it in perspective, I'm in a peer group with some very successful entrepreneurs. One owns several restaurants and breweries, and real estate that houses other restaurants and breweries. They went from celebrating an award on a Wednesday night to laying off most of the staff that Sunday. That is an extreme example, but all businesses are facing challenges. Tax returns probably fall much lower on the priority list. Cash management, communication with lenders or investors, securing stimulus incentives, or finding a compassionate ear moved up. Are we seeing and listening?
Our current reality compounds this. CPAs are focused on their challenges of migrating entire workforces to in-home, digesting and disseminating new legislation and financial reporting requirements, and deferred tax filing deadlines, causing what is likely to be an extended busy season. Firms will have a delayed reaction to the economic fallout, but at the moment, we are busy!
The contrast between our clients' situations and ours creates a delicate communication balancing act. While we need to manage our workflow to be effective, we need to communicate with empathy. Telling a client who just laid off a significant portion of their workforce, that we need their tax information now to manage overtime and deadline compression, will most likely create an ex-client.
CPAs are trusted and valued business advisors. We need to quickly refocus our lens and see the world as it is to maintain and elevate that status.