How can businesses ensure that trust is not misplaced?

In the business world, trust forms the foundation of relationships and is crucial for the smooth operation of any organization, but this trust should not be blind. It must be backed by verification to ensure its integrity and reliability.

I started working with a client, June, who had a degreed accountant and an external tax professional managing her finances. During our work, we needed to reclassify owner expenses to align with good accounting principles.

However, June’s bookkeeper, Sam, feared that this update would trigger a tax audit. Despite our explanations, Sam’s fears caused June to become initially worried. After clarifying our adherence to accounting principles, June understood. But her response was, “Sam’s been with me for a while, and I trust him.”

This experience prompted me to reflect on the nature of trust.

Trust in organizational relationships can be categorized into three types:

  1. Deterrence-based trust is rooted in fear of reprisal if trust is violated, making it fragile.
  2. Knowledge-based trust is established through the predictability from a history of interactions.
  3. Identification-based trust is the highest level, built on an emotional connection over time.

 
Verification through due diligence is crucial. It involves verifying people’s credentials and knowledge through various means such as their website, conversations, and checking references. This verification was lacking in Sam’s case, highlighting an important lesson.

Trust and verify.

Your financials are too important to trust to just anyone. Trust and verification should go hand in hand. Relying solely on someone’s profession or degree can be risky. Trust is built over time, and verifying credentials is the due diligence needed to ensure that trust is not misplaced.

At TurboExecs, we build trust through references, testimonials, referrals, and conversations. We understand the need for a baseline level of trust, especially in our line of work dealing with sensitive data. By upholding the highest ethical standards, confidentiality, and professionalism, we build the trust levels that allow our clients to grow their businesses with confidence.

Concerned about misplaced trust? Ensure your business’s integrity with verification..

And if you need help, TurboExecs can guide you through the process.

Contact us today!

 
 

Your CPA Shouldn’t Be Your CFO!

Put your name and best email address into the form below, and I'll send you “Why You Aren’t Growing Your Business: 5 Reasons Why Your CPA Shouldn’t Be Your CFO” absolutely free.

You have Successfully Subscribed!