Is saving in hiring in the accounts department by businessmen actually a saving or a deferred liability?
Being in practice, how often I have heard and seen clients going for cost-cutting and then eventually paying hell lot in the fines and penalties.
100-500 pm less being paid to any x y z who is not well versed with accounting, GST and income tax etc. make some businessmen feel good for a short run, but eventually they end up paying much much more later on.
The problem is some businessmen and corporates think that accounting or finance department doesn't generate revenue to them. So they try to invest more into marketing or sales where they could generate more revenue. In the process, they end up compromising their finance department and end up paying a major chunk of their finances in late fees and penalties.
Accounting is an integral part of every business and it should be treated like that only.
As news about GST Scrutiny flashes on my Twitter feed, I wonder how many businessmen who tried to save few bucks by spending less in the finance department will rush to CAs now and will eventually end up paying more.
Even some professionals take a huge cut in the fees to stay relevant in the market and they then fail to provide quality to the clients.
The problem is our mindset. We think cost-cutting is our saving. But is it worth it?
A few days back a client came to me for GST work and I quoted him my fees, to which he replied that "sir, another person is charging 500 monthly for GST returns".
I said, "kindly go with that person and in case if any issue comes later on and you come to me for that, my fees will be double of what I have quoted right now".
He returned back after 2 days.
We have studied so hard, we keep ourselves updated about relevant amendments and suddenly some newbie watches random YOUTUBE videos and think himself as some GST or income tax expert and lures clients with fees cut and clients rush to him and when some notice comes, the client comes back to us cursing that person.
Businessmen need to understand that they are doing no good to their business by saving few bucks.