You don't expect an accountant to solve every problem your business faces. But you also can't treat her like someone who just „punches in invoices and gives the tax amount to pay.” The truth lies somewhere in the middle: accounting and tax advisory are two different worlds.
A dentist doesn't treat the heart. But if they notice something concerning, they should refer you further. In accounting, it works in the exact same way—with the difference that the boundary between „bookkeeping” and „advising” is sometimes less obvious.
In practice, we encounter two extreme approaches. In one, the accountant limits themselves to booking documents and calculating tax. In the other, they are expected to act simultaneously as an accountant, tax advisor, lawyer, and CFO within the scope of a single service.
None of these models work well.
Recently, a female client approached us with a very complex case. It concerned, among other things, an inheritance, the valuation of the inherited assets, the further sale of books and e-books, copyrights, company shares, an insurance policy, and the transfer of a car.
The client was keen to sort out the whole situation and find solutions that were both legally compliant and tax-beneficial.
After reviewing the scope of the case, we proposed a consultation with a tax expert. In response, we heard more or less:
„After all, my accountant handles all my affairs, knows the situation inside out, and knows exactly how everything works. Why should I pay extra for a consultation?”
That's a reasonable question.
If one person has been handling the accounting for years, knows the documents and the company's history, it is natural that the client turns to them first.
However, in this case it was not about which account to post the document to.
Among other things, it was necessary to determine the tax consequences of the inheritance, asset valuation principles, rights to sell books and e-books, the method of accounting for revenue and expenses, the basis for transferring the car, and a secure model for future cooperation between the entities.
This was not routine accounting. This was a multi-faceted legal and tax analysis.
And such an analysis costs money.
Not because we want to issue an invoice for every question. But because preparing it takes time, specialized knowledge, reviewing documents and regulations, considering several options, and taking responsibility for the recommended solution.
A good accountant should not dismiss the matter with the words: „that's not my business.”.
She should know the client's business well enough to notice that planned actions could have significant consequences. She should ask additional questions, point out risks, and stop the client whenever a decision requires deeper analysis.
Sometimes the most important sentence is simply:
„Let's pause for a moment and check the consequences.
This is precisely active accounting.
However, it does not mean that the accountant independently analyzes regulations, case law, inheritance law, copyright law, and contract structures, and then takes responsibility for the recommendation.
Her role is to identify the problem, collect the data, and forward the case to the person who has the appropriate competence for it.
Accounting and tax advisory deal with the same money, documents, and economic events. From the outside, the boundary between them is sometimes invisible.
It can be described most simply as follows:
Accounting organizes and settles what has already happened.
Tax advisory helps plan what is yet to happen.
In practice, these areas overlap. The advisor needs data from the books, and the accountant should know the adopted assumptions in order to correctly record the transaction later.
However, cooperation does not mean interchangeable roles.
An accountant can and should signal that a planned transaction carries tax or legal consequences. However, designing the transaction structure, analyzing options, and assessing risks is a separate service.
The client should receive clear information on why an additional analysis is needed, who will conduct it, what it will cover, and how much it will cost. Before the work begins, and not only after it has been completed.
Mere mechanical document bookkeeping is not enough today. But expecting every accountant to be a tax advisor and a lawyer at the same time is an equally big mistake.
In practice, it's not about one person „handling everything,” but rather about the right matters getting to the right specialists.
The accountant is not there to replace a tax advisor.
A tax advisor is not there to keep books.
Each of these roles has different tasks, competencies, and responsibilities. Each of these services also has its own value and price.
Comprehensive service does not mean that everything is included in the accounting subscription. It means that the client has access to the right specialists and is not left alone with a problem.
At Gemini Advisor, accounting and legal-tax services work together, but with clearly separated responsibilities.
As a statutory auditor, I supervise the work of the accounting team. I ensure the quality of accounting records, the accuracy of settlements and reporting, and that accountants understand the context of clients' business operations and are able to identify risks.
Meanwhile, Edyta Mencel, as a lawyer, coordinates the work of the legal and tax team. That is where cases requiring the analysis of regulations, contracts, action options, and the preparation of recommendations are sent.
Thanks to this, the accountant is not left alone with the problem, but also does not exceed their competences.
For the client, this means a simple thing: they do not have to guess who they should contact. We determine what the matter is really about, designate the right specialist, and present the scope and cost of the additional work.
If the question concerns booking a document, tax calculation, or the correctness of records, that is the area of accounting.
However, if it is necessary:
this is the area of legal and tax advisory.
A good accountant doesn't need to know the answer to everything. However, they should know when to ask a question, who to direct it to, and how to explain to the client why further analysis is a separate, paid service.
This is what responsible, active accounting is all about.
Not on „doing everything” in one subscription, but on making sure nothing important is missed.
The client has the right to expect activity. The specialist has the right to expect compensation for their work. One does not exclude the other.
Before you decide
If you are planning a transaction, a change in business form, a transfer of assets, or any other action that may have tax consequences, please contact us before carrying it out.
With Gemini Advisor, we will first determine whether the matter falls within the scope of ongoing accounting or requires the work of a lawyer or tax expert. If additional analysis is needed, we will present its scope and cost in advance.
Write to us and schedule a consultation. It is better to pay to check a solution before making a decision than to pay later for undoing its consequences.
Accounting, taxes, law, and finance don't have to take up your time. Let's talk about your business's needs and find the best solutions.
