Costly
Mistake #3: Just because someone says they’re
a great professional, reputable, honest, timely, conscientious, etc. does not mean they
are. Check their credentials, referrals, have a
contract with agreed fees, and make sure they are doing what they are supposed
to do. And very importantly engage a
professional that will explain to you
WHAT they are doing, WHY they are doing
it and WHEN it should be done and HOW it
will be done and WHO will be doing it.
Example: In one
of our business we formed a corporation and we decided to elect to file
as a subchapter S corporation. This is a
Tax filing elective which allows you to
take certain tax deductions. This filing
MUST be done within a certain time period. If it is not done in the time period allowed
by law, then you are treated by the IRS differently and do not receive certain tax deductions. My lawyer said he knew it all and would take care of everything. I did not have to bother my accountant about that. So I happpily assumed it was being done and done in a timely manner. When it came to tax filing time I told my accountant we were this tax elective...and upon checking we were not.
Therefore it cost me money because we did not have the correct tax status. Do not assume everything will be done, check on it and make sure it is being done. That little mistake cost me over $4,000 in additional taxes that had to be paid.
Needless to say an expensive lesson. Today I am very direct with the professionals I use and work hard to understand what they are doing for me and what are the dates that I need to be concerned about.
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