“Cash is king, and you must absolutely monitor your cash flow. Starting out, you should know where every single penny is coming from and going.”
Taxfyle: Where are you from?
Mark: I have lived in the Dallas/Fort Worth metroplex my entire life. I lived and worked in Dallas for two years, but I prefer the Fort Worth side of the metroplex, which is where I grew up, and where I am now.
T: What is your educational background?
M: I earned my bachelor’s degree in accounting from The University of Texas at Arlington, my MBA from Texas A&M University-Commerce, and am a licensed CPA in the state of Texas.
T: How did you get interested in accounting and more specifically, in becoming a CPA?
M: I knew from an early age that I wanted to be a businessman. Even at a young age, I read about business ideas. I collected aluminum cans to sell, I bought and sold baseball cards, I mowed lawns, etc. I have always been good with numbers, and my dad explained to me that accounting is the language of business. Also, my dad was an accountant, but never earned his CPA. He stressed to me the importance of earning my CPA certification, as it is the pinnacle in the accounting field and will open a lot of doors. So ever since I was a junior in high school, my goal was to study accounting in college, and eventually earn my CPA.
T: Out of all the services you provide, which is your favorite?
M: My favorite service offering is helping my clients start out and getting their accounting system setup and ready for growth. My current client base knows where their skills lie, and it is not where my expertise is, so they add me to their team of trusted advisors to handle the financial side of their companies. Along the way, I teach them how to read financial statements and really treat their business as a business and not as a hobby that makes them money.
T: How do you build and maintain effective relationships with your clients?
M: Just like in personal relationships, client relationships are all about trust and value. If a client doesn’t trust you or doesn’t think that you are adding the value you should be adding, then they are not likely to keep doing business with you. So, building a relationship with a client is about building trust and providing value from the start. Maintaining a client relationship is about never compromising that trust you’ve built, and continually providing value. Just because you’ve “won” a client’s business doesn’t mean that you can ever stop “earning” their business.
T: What do you think are some of the biggest issues facing sole proprietors?
M: One of the biggest issues sole proprietors face is spending too much time on things in their business that are not really part of their skill set. In other words, they try to do too many things themselves, which often leads to spending too much of their time on activities that are not revenue generating. For example, if someone makes custom clay pots, they should spend the majority of their time making those clay pots, or finding new business, not necessarily on web design, accounting, or drafting contracts. While it may seem “cheaper” to do it yourself, what may take the proprietor 10 hours to do could take a specialist 30 minutes or an hour to do while the proprietor could be spending that time generating revenue.
T: What advice would you give to small businesses that are just starting off?
M: Cash is king, and you must absolutely monitor your cash flow. Starting out, you should know where every single penny is coming from and going. If you don’t know where your money is coming from and going while you’re small, then what’s going to happen as you grow? Also, when you’re just starting out, don’t spend money on unnecessary things, and keep your fixed costs as low as possible. That being said, don’t be afraid to hire help in areas that are not really within your skill set.
T: What do you like to do in your free time?
M: I enjoy spending time with my family and friends, eating good food and drinking good coffee, traveling, and watching and playing sports.
T: What is something your clients don’t know about you?
M: I have a second degree black belt in American Karate, and once participated in a watermelon eating contest!
T: Is there anything else you would like to add?
M: Thank you for your thoughtful questions. I appreciate the opportunity. If anyone has any further questions, don’t hesitate to email me at mark@mccaghrencpa.com, or visit my website at www.mcccaghrencpa.com.
Mark McCaghren CPA, Black Belt, Traveller.
