The Most Expensive Word in Accounting in Assumption - Deb Defer’s Lessons

Most issues that accounting firms deal with are pretty obvious. Yet they mull over the same things again and again: 

• Talent shortages.
• Client demands.
• Workflow bottlenecks.
• Technology adoption.
• AI.
• Capacity.

While these are problems essential for tackling, some of the most expensive issues don’t announce themselves. 

Nobody sees them on dashboards or financial statements. They rarely become visible until the damage is already done. 

It begins with a simple assumption. And this is true for almost everyone. 

An employee assumes they understand a workflow. 

A client assumes that a certain deliverable is included in the scope.

A manager assumes that the expectations are clear and everyone understands. 

A leader or a firm owner assumes that everyone is aligned. 

And then come the issues that don’t show up easily:

• missed deadlines,
• frustrated clients,
• inconsistent service,
• rework,
• confusion,
• unnecessary stress.

Not because people are incapable. Not because the systems are broken. Because everyone was operating from a different version of reality.

That was one of the most powerful themes that emerged during the conversation between Deborah Defer, Director of CAS Consulting at Woodard, and Maanoj Shah, Co-Founder at Finsmart Accounting. It was about what lies underneath the obvious challenges. 

One lesson that is consistent across leadership, communication, AI, or CAS – assumptions are expensive, and most firms don’t realize how much they are paying for it. 

The Problem Isn’t That People Don’t Care

The main problem, as Deborah puts it, is that people want to fill in the gaps. Every firm has them – the unwritten processes, the poor methodologies that hide under the cloak of “that’s how we have always done it”. 

As firms grow, these gaps become extremely dangerous. 

What started as a five-person team operating on instinct suddenly becomes a twenty-person organization where every person interprets things differently.

There is no doubt that when perspectives and interpretations vary, every team member will handle client requests differently. 

Unintentionally, everyone is creating inconsistency. They’re simply filling in the blanks.

Deborah described this challenge perfectly when discussing how firms struggle to maintain consistency as they scale.

In her words:

“Too often times we go rogue, and everybody does it their own way.”

That’s the real cost of assumptions – not mistakes.

Variation. And clients feel variation immediately.

Most Operational Problems Are Actually Communication Problems

Solving challenges comes as second nature to accounting firms. When something breaks inside the firms, the instinct is to look for:

• better software,
• more automation,
• another workflow tool,
• another dashboard.

But Deborah repeatedly brought the conversation back to something much simpler.

Communication.

When asked how firms can create alignment around their client promises, her answer wasn’t technology or structure or AI. 

It was direct and uncomplicated: “It’s communication. It’s all about communication.”

Simple yet deceptively difficult. Because communication isn’t about speaking. It’s about clarity. And clarity requires repetition.

• Leaders often assume they have communicated something because they said it once.
• Employees often assume they understand something because they heard it once.
• Clients often assume they know what is included because nobody clarified otherwise.

That chain of assumptions becomes the breeding ground for inconsistency. And that is exactly where the trust begins to crack. 

The Client Isn’t Frustrated Because You Made a Mistake

Their frustration often brews from the fact that they had different expectations. 

One of the most overlooked truths in professional services is that clients rarely judge firms solely on outcomes.

They judge them on whether the experience matched the expectation.

A client can accept a challenge. They will mostly even accept a delay. They will get over one bad news.

But what most clients hate to deal with is the surprises. And surprises usually happen when assumptions replace communication. 

The firm assumed the client understood the scope.

The client assumed the service included something else.

The team assumed expectations had been discussed.

The leader assumed everyone was aligned.

Nobody intended for things to go wrong. Yet everyone ends up disappointed.

That’s why Deborah repeatedly stressed the importance of documentation, communication, and reinforcement.

Three simple words: “Documentation, communication, reiteration.”

But they may be the foundation of every scalable accounting firm.

Growth Doesn’t Create Chaos. It Reveals It.

One of the biggest misconceptions in business is that growth causes operational problems.

In reality, growth usually exposes problems that were already there.

You see, when a firm is small, assumptions can survive. Everyone sits close together. Questions get answered quickly. Processes are informal.

The owner can personally intervene when confusion arises.

But as firms scale, assumptions become liabilities.

Because every assumption multiplies. One misunderstanding becomes five. Five become fifty.

Eventually, leaders find themselves asking: “Why is everyone doing things differently?”

The answer is often surprisingly simple. Nobody intentionally created inconsistency. They simply never created enough clarity. And clarity doesn’t happen accidentally.

It has to be designed.

Even AI Can’t Fix Assumptions

One of the most interesting parts of Deborah’s conversation centered around artificial intelligence.

Unlike many leaders, she is incredibly optimistic about AI.

She shared examples of tools that generate executive summaries, identify client risks, forecast issues, and help firms communicate proactively.

She clearly sees the opportunity. But she also made an important point that many firms overlook – Technology amplifies whatever foundation already exists.

If communication is unclear, technology won’t solve it.

If expectations are undefined, technology won’t solve it.

If processes are inconsistent, technology won’t solve it.

The firm will simply move faster toward the same problems. Which is why Deborah believes firms need a strategy before they need tools.

As she put it:

“If you don’t have an AI strategy or an organization hasn’t even started to think about an AI strategy, they already missed us. They better get on a jet plane and hurry up.”

That quote isn’t really about AI. It’s about intentionality. The firms that succeed won’t be the ones chasing technology.

They’ll be the ones creating clarity. Technology simply helps them execute it faster.

The Real Job of Leadership Is Eliminating Guesswork

This may be the most important lesson from Deborah’s perspective.

Leaders often think their job is to make decisions, solve problems, manage clients, and drive growth. 

And all of that is true. But another equally important responsibility exists.

Eliminating ambiguity.

Because ambiguity forces people to guess. And guessing creates assumptions. And assumptions create inconsistency.

The most effective leaders aren’t necessarily the smartest people in the room.

They’re the people who create the cleanest environment.

An environment where:

• expectations are documented
• processes are understood
• communication is frequent
• responsibilities are clear
• questions are encouraged

That clarity creates confidence. And confidence creates consistency.

The Most Expensive Word in Accounting

Toward the end of the conversation, Deborah shared a lesson from her father that perfectly captures the entire discussion.

She said: “My dad always taught me that you never assume.”

Simple advice. But perhaps one of the most valuable pieces of advice an accounting firm leader can hear.

Because assumptions rarely look dangerous in the moment. They’re small, harmless, invisible, until they aren’t.

Until a client leaves.

Until a project goes sideways.

Until a team member becomes frustrated.

Until growth exposes the cracks.

Most firms believe their biggest challenge is finding more clients. Or hiring more talent. Or adopting more technology.

But sometimes the biggest opportunity is much simpler.

Replacing assumptions with clarity.

Because every time a leader removes guesswork, they create alignment. Every time they create alignment, they create consistency. And every time they create consistency, they strengthen trust.

The irony is that the most expensive word in accounting never appears on a financial statement.

It’s assumption.And most firms are paying far more for it than they realize.

Watch the complete conversation here: https://youtu.be/Qi2_5UoAK7I?si=0Tjmav25oWd5sR2Q