This week I dealt with two different conflict of interest situations (a constant challenge for multi-service CPAs serving small businesses in a small-town environment), faced criticism for being too conservative or skeptical in business strategy, and read a thought-provoking article on errors & omissions insurance. I also received some unexpected and generous praise from clients and members of the local community. That is nice, of course, but it struck me as startling in the moment. This prompted me to pause and reflect on my own history, track record, and reputation.
I have had almost 40 years of professional practice without an errors and omissions claim, a customer complaint, or even an incident resembling an unresolved client dispute. All of the 100 (+/–) ratings and comments published online are five-star and glowing. Before becoming a CPA, I operated a diversified financial services and fintech firm, also without a single complaint. Until recently, I assumed this was normal. But several reputable data sources tell a different story: tax-related disputes reportedly account for two-thirds of all accountant E&O claims. I am specifically positioned to handle high-risk cases and what our industry lightly refers to as “difficult clients.” So, what pulls my practice into what one article described as a “best in class” risk tier? I can think of several possible factors.
Coaching mindset
The top reason is likely my coaching approach. I have had significant training in coaching and facilitation techniques, methods that differ from the traditional advisory model. This approach empowers clients to make their own informed decisions rather than simply receiving advice about what is best.
Core values of a service mentality
My life and my work are governed by core values rarely seen in business today: putting others’ interests before my own, giving away most income and material assets, treating everyone with respect, and taking responsibility even when it is not my fault. Guided by a service mindset rooted in Judeo-Christian principles, I focus on helping others build lasting wealth and stability, rather than accumulating benefits for myself. This mindset may well explain my unusual results, but it is certainly not an endorsement of this self-deprecating approach as a general business model for others. It is unusual, and likely would not work in any other business except a sole practitioner, but it is how I have been since childhood.
Subscription business model
I use a subscription-based business model focused on long term relationships and shared success. We set clear goals and expectations that guide decisions about when to begin and when to conclude our work together. This model seems inherently less contentious, perhaps because clients are not paying upfront for services where expectations might exceed results.
Workflow model
The pace and design of my workflow also contribute to positive results. I like to say that I work the old-fashioned way, with manual care and attention that is financially inefficient and not scalable, but highly effective. For each engagement, we draft a work plan, follow it, evaluate progress, and adjust as needed. Every engagement is customized to the client’s preferences. Terms like “our standard procedure” simply do not apply here. I reserve automation for back-office functions, not for client-facing work.
Realism
CPAs are required to maintain professional skepticism. At times, this may seem negative, but it has saved clients from countless scams and financial disasters. We openly discuss what might happen if the government disagrees with a filing position. Reality often differs from expectations, and facing that honestly builds trust.
Work review process
Even though I work independently, I schedule a review session for each engagement on a different day than when the work was completed. I review in the morning, when my mind is sharp and distractions are minimal. I record Summary Review Reports using video and transcripts to enhance communication and ensure clarity.
Error correction
This is not to say that I do not make mistakes. Today, for example, I discovered in a tax review that I had entered the wrong date of birth for a client into software more than five years ago. This was easily fixed in the document review today, but I had to own the mistake and explain to the client why my initial tax projections were wrong. In the early years before modern internet tools and before I had a human editor, I likely published dozens of articles and newspaper columns with errors. I now have a well-developed system for documenting, correcting, and analyzing errors to prevent recurrence. At one point in mid-career I had to release all my clients after discovering that a head injury was triggering errors in my work. Years of cognitive therapy have strengthened my ability to recognize, analyze, and manage my own cognitive patterns, a skill that helps me maintain accuracy in work today. Periodic reflections and journaling, like this writing, help me to track and analyze progress.
Communication
I make it clear to clients that much of our work is often out of the ordinary, with few precedents and no guaranteed outcomes. I commit to staying with clients as long as it takes to achieve resolution, sometimes years, and often encourage family or others to engage in difficult matters.
Taken together, this logically explains why my own work experience differs from what has been reported in media as the norm, and what is reflected in my anecdotal life experiences. Some might suggest that my action here to call attention to the differences and track record in published form might jinx me for the future. Maybe, but I’m sure that I will continue on the same path in any event.