The Immensely Valuable CPA

John Ray: [00:00:00] Hello. I’m John Ray on the Price and Value Journey. Recently, I sat with an older business owner who is a 50/50 partner with a relative. They’re getting closer to that inevitable time when they are transitioning out of the business and there are problems. The relative’s behavior is erratic, and the business has some unique characteristics, which will make a sale challenging. This owner was wondering how he could navigate all this, a situation which could turn into a quagmire, if not handled just right.

I asked him who among their professional services providers could help mediate and walk through with the two of them this business transition. It had to be someone both he and his relative trusted implicitly. We agreed that having the right person there to smooth any friction would save a lot of hurt feelings, anxiety, and maybe a bunch of legal bills if everything descended into a legal fight. The business attorney had just passed away, but the long-time CPA for the business was still active. Do both of you trust – I’ll call him – Joseph? “Do you value Joseph’s opinions?” I asked him. Do both of you listen to him? How’s his bedside manner? I asked several questions like this about Joseph, and all the answers led to a conclusion this man agreed with, that. Joseph, the CPA was the ideal person, possibly the only person to companion the two of them through the looming transition.

Now, what makes Joseph not just important, but immensely valuable to these two business partners? What is it that makes Joseph seem irreplaceable at this point? Is that his knowledge of the tax code? His ability to help them craft a business transition, which saves both a large tax bill? His accuracy in filing tax returns? The fact that he’s been through 40 or more tax seasons? No, it’s none of these things, actually. All his experience and his qualifications are important, to be sure, but that’s not what makes Joseph more than just important. What makes Joseph immensely valuable here? What makes Joseph seem priceless as an advisor?

Joseph’s value as a professional services provider lies in his experience with these two partners. The trust he has engendered with them over time, his demeanor and his ability to mediate tough situations. All of these factors are intangibles. Intangibles that are not available with anyone else, it seems. Intangibles that these two partners can’t find with a Google search. It’s yet another example of why, ultimately, your content, your experience, your certifications as a professional services provider is not, ultimately, what drives your practice. Whether it’s your knowledge of the tax code if you’re a CPA, or social media platforms if you’re a marketing or branding expert, or the law if you’re attorney, your value lies in intangibles that, sometimes, you’re not able to see if we don’t understand what the client sees. Your value lies in more, much more than just your experience, certifications and the content that you give the world. So, what are those intangibles your clients see in you, which make you priceless to them? Do you know? If not, maybe it’s time to start asking them those questions.

I’m John Ray on the Price and Value Journey. Past episodes of this series can be found on your favorite podcast app, or you can find the entire show archive at PriceValueJourney.com. You’re welcome to send me a note, John@JohnRay.co. Thank you for joining me.