CPAs provide valuable services for their clients, both businesses and individuals. Although it’s important to make clients happy, accountants have additional considerations when preparing financial statements and tax returns.

Aaron Ault is the owner of a small contracting business. In late January 2018, he delivered original expense and income records so that his CPA, Katrina Belinski, could prepare 2017 financial statements and tax returns for Ault’s small business firm. Several weeks later, Katrina delivered the completed financial statements and tax return to Ault. Aaron was pleased with the financial statements but realized that he was going to owe a lot of money in taxes. His business is just recovering from tough times during the recession and he can’t afford to pay such a large tax bill. One particularly large job was completed at the end of the year, and Ault has decided that he’d like to record this during the current year. This would result in a much lower taxable income for 2017. However, Ault is disappointed with Belinski, who tells him that she’s not able to make this change. Now he’s threatening to take his business elsewhere. Belinski is torn because Ault has been a long-time client and she doesn’t want to lose his business.