Amanda Smith

Amanda Smith worked for one of the big accounting firms for six years. She had earned an accounting degree and had passed the CPA exam on her first attempt. She had strong technical skills and had been given management responsibilities for audits and tax services over the last two or three years.

Amanda always wanted to open up her own business. She wanted to work in her own community and have the flexibility provided by owning her own business. Of course, she hoped to make a nice living at it, too.

So in the fall of 2008, Amanda opened up Smith's Accounting and Tax Service with one employee, Lisa. Lisa was an acquaintance of Amanda's from her neighborhood. Amanda knew Lisa was looking for a job and had worked with her on several community events. She and Lisa got along well, so Amanda hired her.

Lisa was what they used to call a Gal Friday. She did everything. She did the bookkeeping and secretarial work, answered the phone, set appointments, placed advertisements, made sure the office was clean and presentable, and did a host of other things that kept the business moving in the right direction. Amanda frequently praised Lisa and rewarded her with small gifts and tokens of appreciation. She promised Lisa that as the business grew, so would Lisa's position in the firm. Lisa felt like she was in on the ground floor of something big.

Amanda had developed a mission and a strategy for her business. She wanted to be the "accounting office of choice for small-business owners who needed accounting services and the tax service of choice for small businesses and individuals in her community." She advertised and focused on small businesses and individuals, offering in-office services in addition to her willingness to complete the tasks at business worksites or individuals' homes. Her motto was "Have Laptop, Will Travel." She focused on pleasing the client and making her services convenient.

About mid-December, Amanda starting getting calls for tax service....