There’s no excuse for not knowing how your money is flowing.
What’s coming in and what’s going out? And which one is more?
The Schitt’s Creek series starts with a raid by the Revenue Agency (the show was written in and takes place in Canada. And was originally aired on the Canadian Broadcasting Corporation). It turns out the Rose family owed multiple thousands in back taxes.
The Rose family (Johnny, Moira, David, and Alexis) failed to pay their taxes on time because the accountant they hired to manage their money assured them all was being taken care of. Yet, in truth, he stole nearly $500 million of their money and fled the country.
It’s a trope that has been used multiple times in film and TV shows. The show Arrested Development comes to mind.
The reason this story idea gets used is because it’s based on the truth. Accountants stealing from their clients happens more frequently than you’d think. In fact, this summer an accountant for three Massachusetts towns was accused of stealing more than $729,000.
I’m not trying to disparage accountants! The vast majority (99%) operate ethically.
The mistake Johnny Rose made was NOT in trusting the accountant. It was in not reviewing the bank statements and paperwork. Like most people who get duped they failed to read the fine print and to review all the information. If he done this simple step the accountant would not have been able to steal his money and fail to pay taxes to the government.
Johnny wanted to hit the “Easy” button of letting someone else mange his money. And it certainly is tempting. He felt secure in his millions and never thought he’d be stolen from.
But then again, don’t we all desire to have that sense of security?
When it comes to finances you should always have your finger on the pulse of your money.
Review your financial and bank statements. Make sure you know if you’re cash flow positive or negative.
And don’t be afraid of using accountants! I certainly do. Especially during tax season. Accountants are a professional class that can make running your life and business easier—especially if you dislike having to account for every receipt and balance accounts. Personally, I HATE having to do my bookkeeping.
Yet when we hire most service professionals (plumbers, roofers, electricians, lawyers, doctors, teachers and more) we have to still keep tabs on the work. We might not know if the work is done accurately—hello legalese—but you’d never just sign off without even a cursory review. After the electrician finishes the work don’t you double check to make sure things are operating as they should? If that’s true, why don’t you do the same when working with an accountant?
Don’t be like the Roses.
Know how your money is flowing.
If the thought of dealing with you money is building up some resistance for you—did you freak out a little while reading this?—reach out to me. What’s happening is that you’re struggling with your thinking about money. I can help you get your relationship with money right. It doesn’t need to be so stressful.
