Podcasts

The Math Behind Tax-Free Employee Discounts That Most Businesses Get Wrong

Earmark Team · January 24, 2026 ·

Picture an airline employee boarding a flight home after visiting family, slipping into an empty seat at the last minute without paying a dime. Is this a tax-free perk or unreported income? The answer hinges on one crucial detail that could mean thousands of dollars in tax liability, whether that seat was reserved or simply excess capacity.

In this first episode of a multi-part series on tax-free employee benefits, Tax in Action host Jeremy Wells, EA, CPA, breaks down the complex world of no-additional-cost services and qualified employee discounts under IRC Section 132. As Jeremy explains, “Employers are constantly trying to figure out ways to encourage either prospective employees to want to come work for them, or for current employees to want to stay.” These benefits have become essential recruiting tools, yet their tax-free status depends on following precise technical requirements.

The Starting Point: Everything Is Taxable Unless…

Jeremy begins with a reality check that sets the stage for everything that follows. “IRC 61(a)(1) includes in compensation for services, commissions, fringe benefits, and similar items in gross income,” he emphasizes. “So in other words, if you get some sort of fringe benefit from your employer, it’s taxable unless there is some specific exception in the code.”

This means every perk, discount, or free service an employer provides is taxable compensation by default. Section 132 provides specific exceptions, but only if employers and employees follow the rules. Miss one requirement, and that tax-free benefit becomes taxable wages subject to withholding, penalties, and interest.

This episode focuses on two of the most common Section 132 benefits: no-additional-cost services and qualified employee discounts.

No-Additional-Cost Services: The Excess Capacity Exception

The concept seems simple enough: if providing a service to an employee doesn’t cost the employer anything extra, the employee can receive it tax-free. But as Jeremy explains, employers have to meet multiple requirements.

A no-additional-cost service must be “one provided to an employee for personal use,” Jeremy notes. “It’s ordinarily offered for sale to customers, and it incurs no substantial additional cost or foregone revenue when provided to the employee.”

The Reservation Problem

Jeremy returns repeatedly to airline examples because they perfectly illustrate the distinction between acceptable and problematic benefits. When discussing an empty airline seat, he explains, “The airline wasn’t going to sell that ticket anyway. So the airline isn’t losing anything. It’s not paying any more than it had to to add one more passenger to that flight.”

This is true excess capacity. Once the plane door closes, that empty seat has no value so letting an employee use it costs nothing.

But Jeremy warns about a critical limitation. “Employers can’t exclude reserved services.” If an employee reserves a seat while customers can still book the flight, “that airline potentially loses revenue if a customer wants to book that flight but can’t because the employee took the last seat.”

The employee could still take that reserved seat without paying, but “the airline would need to add the value of that ticket to the employee’s compensation as taxable income as part of the employee’s wages.”

Calculating Substantial Additional Cost

Determining whether a service incurs “substantial additional cost” requires careful analysis. “The employer has to include the cost of labor incurred in providing the service,” Jeremy explains. For modern service businesses, this can be challenging. While a manufacturer can easily track labor hours per widget, service businesses often struggle to allocate labor costs to specific services.

Jeremy offers some relief through the concept of “incidental services.” If a service is secondary to normal operations, it “generally doesn’t incur substantial additional cost.” This gives employers a near-safe harbor for ancillary services.

However, there’s a catch: “The employer incurs substantial additional cost if the employer or its employees spend a substantial amount of time providing the service to employees.” The vagueness is frustrating. “We don’t really get more detail than that,” Jeremy points out.

Reciprocal Agreements: Trading Services Tax-Free

One interesting provision allows unrelated companies to trade services. “An employer has to have an agreement with an unrelated other employer,” Jeremy explains, outlining three requirements:

It must be a written reciprocal agreement
The employee could exclude the value if their own employer provided it
Neither employer can incur substantial additional cost

Jeremy emphasizes a crucial restriction. “If there are any payments involved between the two companies, then that is by definition a substantial additional cost and the entire agreement breaks down.” The exchange must be pure barter—services for services, no money changing hands.

Qualified Employee Discounts: Different Rules for Products and Services

While no-additional-cost services focus on excess capacity, employee discounts involve mathematical calculations that vary dramatically between services and products.

The 20% Rule for Services

For services, there is a clear bright-line test: “A discount on a service can’t exceed 20% of the price offered by the employer to customers.”

Using a simple example, “If your business provides a particular service to its customers for $100, then you can offer that same service to your employees for no less than $80” without tax consequences. Charge $70, and that extra $10 becomes taxable wages.

Gross Profit Calculations for Products

Product discounts follow a completely different formula. “The discount can’t exceed the gross profit percentage on the price offered by the employer to customers,” Jeremy explains. This requires complex calculations.

Jeremy walks through a practical example using a lawn equipment retailer offering employee discounts on push mowers. The store can’t just pick one model; it must aggregate. “Let’s look at the aggregate sales price. So of all of our push lawn mowers, what is the aggregate sales price of all of them?”

The calculation averages across the entire product line. “Some of them are going to be cheap. Some of them are going to be expensive. Some of them are going to be top of the line.” The employer calculates both average selling price and average cost to determine the gross profit percentage and that becomes the maximum tax-free discount.

The 35% Group Discount Rule

If a business regularly offers discounts to customer groups, such as seniors or military, and those sales comprise at least 35% of total sales, the discounted price becomes the baseline. “We’re trying to avoid inflating the price to act like we can afford a bigger discount for our employees,” Jeremy explains.

When multiple discount groups exist, employers can “choose the most common discount, the one producing the largest share of total discounted sales as the benchmark. Or if there’s a tie, it can average between them.”

What Can’t Be Discounted

Jeremy identifies surprising exclusions, including real estate, buildings, and land, and personal property usually held for investment, such as securities, commodities or currencies.”

Even businesses that primarily deal in these items, such as real estate brokerages and securities firms, cannot offer tax-free employee discounts on their main products.

Unlike no-additional-cost services, Jeremy makes clear that employee discounts have a major limitation. “You can’t create a reciprocal arrangement with another company to provide discounts on goods or services.”

The Compliance Framework: Who Qualifies and How to Document

Beyond the mathematical requirements are administrative challenges that can transform simple perks into compliance nightmares.

Nondiscrimination Requirements

Highly compensated employees—those earning over $160,000 in 2025 or owning 5% or more of the business—face special restrictions. They “can exclude no additional cost services, but only if the employer offers that service on substantially the same terms to each member of a group of employees.”

Jeremy provides a practical example of acceptable classification. “Once a new employee works for the business for at least six months or one year, then that employee is now eligible for the fringe benefit.” This creates an objective standard applying equally to all compensation levels.

Line-of-Business Limitations

This requirement emerged from the corporate consolidation era. “You started seeing businesses merging and acquiring other businesses,” Jeremy observes, “and pretty soon a business didn’t offer just one type of good, it might offer ten, 20, or 50 different kinds.”

The rule is, employees can only receive tax-free benefits for goods or services related to their line of business. Jeremy offers a clear example: “A bank can’t provide discounted apparel or groceries to its employees if it doesn’t also primarily sell clothing and groceries to its customers.”

However, employees supporting multiple divisions qualify more broadly. Administrative staff, IT professionals, and other infrastructure workers who benefit multiple lines of business can receive benefits from any division they support, even indirectly.

The Outdated Classification System

Determining lines of business relies on the Standard Industrial Classification system, which Jeremy notes was developed in 1938 and hasn’t been updated since 1974. Many modern businesses operate in industries that didn’t exist when these codes were created. While the Treasury proposed updating to the modern NAICS system in August 2024, employers must still navigate using pre-internet classifications.

Documentation Requirements

Jeremy concludes with essential documentation advice:

Document employees’ regular work to prove line-of-business compliance
Confirm services/products are offered to customers ordinarily
Quantify any costs or foregone revenue for no-additional-cost services
Calculate and document gross profit percentages
Maintain pricing records from when benefits were provided

“Document the terms of the benefit, ideally in writing,” Jeremy emphasizes, suggesting inclusion in employee manuals.

Looking Ahead: More Benefits to Come

Section 132 benefits reveal how simple concepts, such as free services and employee discounts, become complex compliance exercises requiring careful calculation and documentation. Yet for employers competing for talent, mastering these rules is essential for offering competitive compensation packages without triggering unexpected tax consequences.

Jeremy promises to continue this series in the next episode: “We’ll keep looking at Section 132 with working condition fringe benefits and de minimis fringe benefits.”

For tax professionals advising clients or business owners designing benefit packages, understanding these requirements is about maximizing value for employees while avoiding costly mistakes. The difference between a valued perk and a tax liability often lies in a single detail, such as whether a seat was reserved or whether discounts were properly calculated.

Listen to the full episode of Tax in Action to hear Jeremy break down each requirement with the clarity that makes complex rules immediately applicable in your practice.

Your Imposter Feelings Are Actually Proof You’re Growing, Not Failing

Earmark Team · January 24, 2026 ·

Picture attending a White House event. You’re surrounded by accomplished professionals, and you find yourself gravitating toward the back of the room because you don’t feel you belong. Now imagine discovering the person next to you feels exactly the same way, and that person is Neil Armstrong.

This story, shared in the latest episode of She Counts, captures what nearly every woman in accounting knows but rarely discusses openly. When hosts Questian Telka and Nancy McClelland asked a room full of accounting professionals at the Bridging the Gap Conference who experiences imposter syndrome, virtually every hand went up. The same thing happened at Scaling New Heights.

“It ain’t a syndrome if everybody experiences it,” Nancy declared after witnessing the sea of raised hands. “How is it a syndrome? That doesn’t make any sense whatsoever.”

It’s Not a Medical Condition—It’s Being Human

When 99% of accomplished professionals admit to these feelings, we’re not talking about something that needs fixing. We’re talking about being human.

Psychology Today reports that 70% of adults experience imposter feelings at least once in their lifetime. But Nancy and Questian’s informal polls suggest it’s nearly universal. The problem isn’t the feeling; it’s calling it a “syndrome.”

“A syndrome has to truly be interruptive in your life,” Nancy explains. “It needs to prevent you from accomplishing something you would otherwise accomplish.”

Instead, she argues these are “just parts of the human condition, in the same way that we will all at some point struggle with being depressed, we will all at some point struggle with loss.”

The hosts push for new language: imposter feelings, imposter phenomenon, imposter experience, or simply imposterism. Each strips away the medical connotations while acknowledging the reality.

Even Nancy, despite decades of public speaking experience, admits: “I am always convinced that people are going to think I’m a rookie at public speaking, which is completely ridiculous.” The fear persists not because she lacks competence, but because it’s how humans process growth.

When “Fake It Till You Make It” Goes Wrong

Before we go further, let’s be crystal clear about what imposter syndrome is NOT.

“It does not mean being unskilled and doing something anyway,” Questian emphasizes. “We are not telling anybody, ‘Oh, you don’t know what you’re doing, so go and do it.’ We don’t want to fake anything until we make it in accounting. We need to know what we’re doing.”

Questian describes the real definition as “a persistent, self-limiting belief that you’re not as competent as others perceive you to be.”

For her, it manifests as fear that someone will “find her out.”

“It’s like, ‘Oh, we hired her to do this thing, but she really isn’t competent to do that.'” This despite the fact that people hire her precisely because they recognize her competence.

The Perfect Storm for High-Achieving Women

For women in accounting, these universal feelings collide with specific pressures. After successfully moderating a panel, participating in another, and recording a live podcast at Bridging the Gap, Questian came home and texted Nancy, “I don’t deserve to be in this space with these incredible people.”

This was after Nancy told her, “That was the best panel moderation I’ve seen in years.”

Both hosts confess to a toxic combination of overpreparing AND procrastinating. “I overprepare because I want it to be the best that it possibly can be, and I’m scared I won’t do a good job,” Questian explains. “And then I procrastinate because I build up this thing in my mind.”

The systemic roots run deep. When Questian shared her vision for expanding her work empowering women in accounting, a colleague responded: “Well, no one will really want to listen to you because you’re not a leader.”

“For a moment I thought, well, yeah, I’m not a C-suite individual,” Questian reflects. But she runs her own firm and co-hosts a top-ten accounting podcast. “Do you think he would have said anything like that to a man?” Nancy asks. The answer: absolutely not.

When Identity Multiplies the Pressure

The intersection with other identities intensifies everything. “A woman of color in a majority white firm may internalize the pressure and feel like she needs to be twice as good to prove herself,” Questian explains.

For those with neurodiversity, like Questian’s ADHD, there’s exhausting masking. “I’ve spent a lot of time masking and trying to hide or overcompensate for my ADHD traits,” she shares. “When I compare myself to how a neurotypical person is, then it can also intensify my feelings of imposter syndrome.”

Nancy shares a story about a friend who grew up poor and, despite now earning good money, felt she didn’t deserve to eat at a nice restaurant. “Success felt very new to her, and therefore it felt very fragile.”

Nancy’s own experience joining boards at 27 reveals another layer. “I knew I had to work ten times more than anybody else to prove I deserved to be on that board.” But here’s the thing: she was already invited. They already knew she’d do a good job.

“I’m still that 27-year-old,” Nancy admits at 53. “I’m still trying to prove myself in the way that person was.”

What Doesn’t Help (And What Does)

Let’s talk about what makes things worse: toxic positivity.

“Just hearing you say ‘You got this! You can do it!'” Nancy tells Questian, “I’m bristling literally just hearing that.”

Empty affirmations without substance can actually increase shame. What works is specificity. Instead of “You got this,” try “You’ve got this because you’ve been studying S corps and reasonable compensation for years” or “You’ve got this because you spent three hours preparing.”

Nancy shares a quote from a friend that sums it up perfectly. “Remember, your entire life has brought you to this moment.” It’s not empty encouragement; it acknowledges of a decade studying the topic.

The Four R’s That Actually Work

Nancy developed a framework that starts with three R’s:

Recognize. “We have to name it out loud. Call it what it is,” Nancy emphasizes. Say to yourself or others, “These are imposter feelings.” The simple act of naming it strips away its power.
Reframe. Transform “I’m a fraud” into “I’m growing and learning.” Nancy shares insights from a member of Ask a CPA who thought the world of bookkeeping knowledge was small and she knew most of it. After joining, that member realized the world of knowledge was infinitely larger. Her knowledge had grown, but relative to what she now knew existed, she felt smaller. “That doesn’t make you a fraud,” Nancy insists. “That gives you an opportunity to go to the next level.”
Relief. “When you recognize and you reframe, ideally that takes some pressure off of you needing to go learn all the things.” Because learning everything is impossible.

Questian adds a crucial fourth R:

Redefine competence. “We’re not looking for perfection; we’re looking for progress,” she emphasizes. “No one has the entire tax code memorized. Okay, maybe somebody does, but I doubt it.”

Track Your Wins (Even If You Don’t Journal)

Neither host journals traditionally, but they’ve found other ways to document accomplishments. Nancy maintains a presentations and podcasts page on her website. When asked how many webinars she teaches, Questian had to think: “Wow, actually quite a few.”

“Set your own metrics of success,” Questian advises. “Don’t worry about what other external metrics there are. Determine your why and what it means to you individually.”

The goal isn’t to never feel like an imposter; it’s to recognize those feelings as signals of growth and push forward anyway.

Join the Conversation

These feelings you’re experiencing? They’re not evidence that you don’t belong. They’re proof you’re exactly where you need to be: on the edge of your next level of growth.

Ready to hear the full conversation? Listen to “Imposter, Interrupted.” Then join the discussion on the She Counts Podcast LinkedIn page. Share a time when feeling like an imposter impacted your career and whether you found a way through it. Or help Nancy and Questian answer their question: What should we call it instead of “syndrome”?

Because if there’s one thing this episode makes clear, it’s that you’re not alone in these feelings. And maybe that’s the first step to interrupting them.

Intuit Pays OpenAI $100 Million While Tech Giants Manipulate Profits Through Creative Depreciation

Earmark Team · January 17, 2026 ·

Blake Oliver and David Leary are back with The Accounting Podcast after Blake’s bout with what he calls “the worst cold ever” from a Las Vegas conference. Their return episode tackles some major developments in accounting tech, including a massive deal between Intuit and OpenAI that could change how millions interact with their financial data.

AI Adoption Hits a Tipping Point

Blake kicked off the discussion by sharing insights from his recent presentation at the American Society of Cost Segregation Professionals conference. One striking statistic: 55% of US adults have now used generative AI like ChatGPT, up from 45% just a year ago.

“We passed the midpoint,” Blake noted. “The majority of American adults have now used ChatGPT.”

But here’s what should worry accounting professionals: A new survey reported by CPA Practice Advisor found that 10% of adults acted on AI tax guidance within the last 30 days, while 21% followed AI crypto advice. The problem, as Blake warns, is “AI gets complex tax questions wrong up to 50% of the time.”

Intuit Bets Big on OpenAI

The headline news centers on Intuit’s announcement that it will pay OpenAI $100 million per year in a multi-year deal. Soon, ChatGPT users will be able to connect their TurboTax, QuickBooks, Credit Karma, and Mailchimp accounts directly within ChatGPT.

David found this move puzzling given Intuit’s recent behavior: “Intuit just raised prices on developers to pull data from QBO to stop some of these AI plays from sucking all the QBO data. Now it’s the complete opposite. They’re going to pay somebody else to suck that data out.”

According to Intuit’s CFO, the real motivation is customer acquisition. They want to convert OpenAI’s 800 million weekly active users into Intuit customers. Blake sees this as part of a larger trend where ChatGPT becomes “the primary place where you work” by connecting to all your apps and data.

This raises questions for accounting firms. As David wondered aloud, “Are accountants going to panic when clients connect to ChatGPT?” The hosts noted that details about data privacy and whether users need to explicitly authorize these connections remain unclear.

The Two-Minute Rule for AI Accuracy

Blake’s presentation revealed a crucial insight about AI’s current limitations. Through his research, he found that AI can handle tasks with near 100% accuracy, but only if those tasks would take a human about two to five minutes to complete.

“The longer the task, the less accurate it gets,” Blake explained. For example, for tasks taking 30 minutes, accuracy drops to 80%. For two-hour tasks, it’s only 50% accurate. That’s essentially a coin flip.

This has real consequences. According to the survey data Blake cited, 19% of Americans have already lost over $100 following bad AI advice. Yet 27% still believe AI could provide all the financial guidance they need.

One bright spot came from a viewer comment during the live show. An intern at a mid-size firm shared that they spent 10% of their work time using Gen AI and were the only intern offered a permanent position due to superior productivity. “People will be judged against coworkers who are using AI and who are more productive,” David observed.

The good news is that AI’s capabilities are doubling every seven months. “If AI can do tasks with near 100% accuracy that are two minutes long right now, then in seven months it’ll be four, and in 14 months it’ll be eight,” he calculated.

Michael Burry Spots Another “Big Short”

Perhaps the most alarming story involves Michael Burry, the investor and hedge fund manager who famously predicted the 2008 mortgage crisis. His fund is now shorting AI companies like Palantir and Nvidia based on what he sees as widespread accounting manipulation.

The issue is tech giants extending depreciation schedules for their AI infrastructure to make their profits look better. Blake broke down the numbers:

Alphabet extended depreciation from three to five years, adding $3 billion to profits
Microsoft went from four to six years, gaining $2.7 billion
Meta moved from four to five years for a $1.5 billion boost
Amazon made similar changes

“Let’s say you have a $10 billion investment in AI chips,” Blake explained. “If your useful life is two years, you’re recognizing $5 billion of expense each year. But if you make that five years, now it’s only $2 billion of expense. That’s a $3 billion difference.”

David drew parallels to the 2008 crisis. “It’s like the Big Short when you roll up these bad loans into a different one. Now it looks good, but it’s really 300 bad loans. It’s totally the Big Short all over again.”

The hosts pointed out that the entire tech industry made these changes starting in 2022, suggesting coordinated “earnings management.” Yet auditors and regulators haven’t pushed back. “If everybody’s doing it, that makes it seem more reasonable,” Blake noted with frustration.

Other Notable Updates

The episode covered several other important developments:

Rippling vs. Deel Drama

New court documents reveal that Deel allegedly paid a corporate spy through the COO’s wife’s bank account. Rippling published bank statements showing the money trail. Deel’s corporate account sent funds to the COO’s wife, who forwarded the exact amount to the alleged spy just 56 seconds later.

Alternative Pathways Progress

New Jersey unexpectedly passed alternative pathways legislation for CPAs. If the Senate approves, it will become the 24th state to offer alternatives to the traditional 150-hour requirement. That’s nearly half the states in just 11 months.

PCAOB Admission

In a surprising interview, the PCAOB’s acting chair revealed that after 20 years, they’ve never formally defined what “audit quality” actually means. Blake couldn’t believe it: “Isn’t that their job?”

Ancient Accounting

In a lighter moment, David shared news about researchers discovering what might be an ancient general ledger in Peru: 5,200 holes arranged in patterns that may represent an accounting system used by the Inca.

Looking Ahead

The accounting profession is in the eye of a perfect storm. Clients trust AI tools despite high error rates, software companies scramble to partner with AI platforms rather than compete, and tech giants manipulate their books to show AI-driven profits that may not materialize.

Blake offers some practical advice for accounting professionals: identify those two-to-five minute tasks where AI excels and use it there. But also prepare to clean up messes from clients who trusted AI with complex questions it can’t reliably answer.

“Good news for tax pros,” Blake concluded with dark humor. “You’re going to be untangling tax messes for years thanks to bad AI tax advice.”

The full episode of The Accounting Podcast includes additional details about these stories and the hosts’ unfiltered analysis of what these trends mean for the profession. As David noted about their nearly broken seven-year weekly recording streak, consistency matters—especially when the industry is changing this fast.

Ancient Fraudsters Wrote the Playbook Modern White-Collar Criminals Still Follow

Earmark Team · January 17, 2026 ·

Picture a man frantically sawing through the bottom of his own ship in the middle of the Mediterranean Sea. Passengers rush below deck to find him red-handed, hole half-cut, wood shavings floating in the rising water. A chase ensues. The would-be fraudster, cornered and desperate, hurls himself into the ocean rather than face justice.

This isn’t a Netflix true crime series; it’s a 2,300-year-old insurance fraud that went spectacularly wrong.

In the latest episode of Oh My Fraud, host Caleb Newquist takes listeners on a journey through time to explore some of history’s earliest recorded financial frauds. Fresh from his European travels (with a particular fondness for Budapest’s goulash and Vienna’s coffeehouse culture), Caleb digs into ancient schemes that prove creative accounting isn’t a modern invention.

When Rome Literally Auctioned Off the Throne

The Year of Five Emperors in 193 reads like a corporate governance nightmare. It started with Emperor Commodus getting assassinated on New Year’s Eve 192 and creating what Caleb calls “quite an exciting start to the year 193.”

His successor, Pertinax, took the throne with big plans to reform Rome’s finances, which Commodus had left in ruins. Think of him as the turnaround CEO brought in after a spending spree. His first move was cutting the donativum, the cash gifts emperors traditionally paid to the Praetorian Guard when taking power.

Bad idea. The Praetorian Guard, Rome’s elite military unit responsible for protecting the emperor, didn’t appreciate their bonus getting slashed. When Pertinax’s follow-up offers still fell short, around 300 guards stormed the palace. After what Caleb imagines as “a very brief conversation,” they assassinated him. His entire reign: 87 days.

What happened next defies belief. The Praetorian Guard auctioned off the throne to the highest bidder. Marcus Didius Julianus won and became emperor, essentially purchasing the Roman Empire like buying a company at auction. But word quickly spread about how he got the throne. Three influential generals rebelled and claimed it for themselves. Within 66 days, Julianus was assassinated, ending one of the shortest reigns in Roman history.

The parallels to modern corporate fraud are hard to miss. We’ve seen executives obtain positions through financial manipulation and insider dealing. The donativum system itself mirrors modern bonus structures that create dangerous dependencies. When those bonuses get cut, whether in ancient Rome or on Wall Street, the backlash can destroy companies and careers.

The World’s First Insurance Fraud Goes Sideways

If the Roman story shows political corruption at its worst, ancient Greece produced the world’s first recorded insurance scam in 360 BCE. Meet Hegestratos, a sea merchant with a plan that was elegant in its simplicity and spectacular in its failure.

To understand the scheme, you need to understand bottomry loans. Back then, sea travel was genuinely terrifying. Ships sank all the time. Bottomry allowed merchants to borrow money using their ship and cargo as collateral. If the vessel reached its destination, the merchant sold the cargo, repaid the loan with interest, and kept the profit. If the ship sank, the lender ate the loss. It was proto-insurance built on trust that merchants wouldn’t deliberately sink their own vessels.

Hegestratos saw opportunity where others saw protection. He and his coconspirator Zenothemis took out a bottomry loan for a grain shipment from Syracuse to Athens. But instead of using the money properly, they immediately sent it to Massalia (modern-day Marseille). They planned to sail for a few days, scuttle the ship, claim tragic loss at sea, and keep both the loan money and the grain.

Two or three days into the voyage, Hegestratos decided it was showtime. He snuck below deck and began cutting a hole in the ship’s hull. Meanwhile, Zenothemis stayed topside, supposedly creating a diversion.

But as Caleb hilariously reimagines it, Zenothemis was terrible at his job. Picture him “fake coughing every time there’s a loud noise from down below” while other passengers, who already didn’t like him, grew suspicious. The cutting was loud. The diversion was pathetic. Soon, passengers rushed below to find Hegestratos literally caught red-handed.

What followed was pure slapstick. Caleb envisions it as “one of those Keystone Cops chase scenes with Yakety Sax playing behind it.” Hegestratos flees through the ship, passengers in hot pursuit, ending with the fraudster hurling himself into the Mediterranean. As the ancient orator Demosthenes recorded, “Thus miserable as he was, he met a miserable end as he deserved, suffering the fate which he proposed to bring about for others.”

You’d think watching your partner drown would inspire some soul-searching. Not Zenothemis. With remarkable audacity, he tried to continue the fraud. He actually asked the crew to sink the ship anyway, arguing that “all hope was lost.”

When that failed and they limped to shore at Cephallenia, there was a dispute. Protus, the “supercargo” responsible for the grain reaching Athens, wanted to continue there. Zenothemis insisted they go to Massalia, claiming connections to the deceased fraudster and the original lenders. The local magistrates sided with Protus. They ordered the ship to Athens, where Zenothemis filed lawsuits claiming ownership of the grain.

The Mystery Ending That Still Bugs Historians

The frustrating part of this story is we don’t know how it ended. The original documents were “mutilated,” leaving only 32 paragraphs that “yielded no satisfactory sense” about the final verdict.

This uncertainty has sparked debate for centuries. John M. Zane’s 1925 Michigan Law Review analysis offers a twist: maybe Zenothemis wasn’t a coconspirator but another victim. Zane points out that Zenothemis had no access to the redirected money, no legitimate claim to sell the cargo, and nothing to gain from the ship sinking. Maybe he desired to return to Massalia because he genuinely wanted to collect insurance to repay his lender friends.

Zane even suggests that if it went to trial, the rich lenders probably lost because Athenian juries were populist and unsympathetic to wealthy plaintiffs, a dynamic that sounds familiar to anyone following modern white-collar crime prosecutions.

Whether Zenothemis was a fraudster or a fool, the case establishes a principle fundamental to financial law: fraudulent contracts are void. This ancient precedent echoes through centuries of case law and continues protecting victims today.

Ancient Schemes, Modern Lessons

As Caleb notes, there are no new frauds, just new fraudsters. The schemes evolved from bottomry loans to blockchain, from cutting holes in ships to cutting corners in compliance, but the patterns remain:

Exploiting trust. Bottomry loans worked because people trusted merchants wouldn’t sink their own ships, just as modern systems assume executives won’t tank their own companies
The coconspirator problem. Hegestratos learned fatally that complex fraud needs help, yet every additional conspirator multiplies detection risk
Documentation dilemmas. Even in 360 BCE, fraudsters needed false paperwork and had to manage competing claims
Greed override. Both cases show how easy money overrides rational risk assessment

Caleb’s observation about creating diversions particularly resonates: “You cannot have any weak links in your conspiracy. Don’t think you can just let some hack create a half-assed diversion for you.” His reimagining of Zenothemis’s pathetic distraction attempts—fake coughing to cover ship-cutting sounds—reminds us that fraud often fails not in conception but in execution.

For CPAs and fraud examiners, these aren’t just historical curiosities; they’re training exercises in pattern recognition. The executive inflating revenues for bonuses follows Julianus’s playbook. The insurance fraudster staging accidents mirrors Hegestratos’s scheme. Understanding these patterns helps professionals spot red flags before they become scandals.

The Timeless Blueprint of Financial Deception

From emperors buying their positions to merchants attempting insurance fraud, these ancient cases reveal that financial deception is as old as commerce itself. The schemes involved ships instead of spreadsheets, cargo instead of cryptocurrency, but the underlying patterns of exploiting trust, creating false documentation, and letting greed override judgment haven’t changed.

For today’s accounting professionals, these historical frauds serve as cautionary tales and educational tools. That executive oddly eager to bypass controls? They’re following Julianus’s playbook. That unusual insurance claim with convenient timing? It echoes Hegestratos’s bottomry loan scheme. The vendor insisting on redirecting payments? They’re pulling a move as old as Massalia.

What makes these ancient frauds valuable is their stripped-down simplicity. Without modern financial instruments and digital smokescreens, we see the raw mechanics of deception. The Praetorian Guard’s throne auction isn’t fundamentally different from a board being bought off; it’s just more honest about the transaction.

Listen to the full episode of Oh My Fraud to hear Caleb bring these ancient frauds to life with his signature blend of historical detail and irreverent humor. Because sometimes the best way to understand today’s financial crimes is to study the fraudsters who wrote the original playbook over two millennia ago.

She Fired Every Client She Had and Made More Money Within 24 Hours

Earmark Team · January 17, 2026 ·

Life has a way of interrupting our best-laid plans. As this episode of She Counts begins, co-host Nancy McClelland is racing to handle another family crisis. Her mother must be moved from her nursing facility with just two days’ notice after Medicaid refused coverage. It’s the kind of real-life emergency that women in accounting juggle daily while trying to run businesses and serve clients.

Stepping in to help is Candy Bellau, CFE, co-host of the Unbalanced Podcast and a fraud expert who knows firsthand what it’s like to manage a parent’s care from another state. “While I was in it, it was hard. It was so hard,” she shares. “I got a lot of insight afterward. What am I doing with my life? What am I doing with my family? Why am I running my business this way?”

The two had a raw conversation about how chronic underpricing affects women across accounting and how to break the cycle.

From Six Figures to Financial Ruin

Candy’s story sounds impossible until you realize how common it is. At 16, she was already supporting her entire family, negotiating a full-time salary for part-time bookkeeping work. “They hired a full-time person to do the job, and they couldn’t do it,” she recalls. When asked to fix the mess, she saw opportunity. “Why don’t you pay me what you were paying her? I will come in every day after school. You should send a car to pick me up.”

That teenage negotiator became a New York powerhouse. “I would get bonuses that were 100% of my salary,” she explains. “I was making so much money.” Her credit was so perfect that a BMW dealership handed her keys to a convertible without even a down payment, telling her to “go show off to your friends.”

Then she moved to New Orleans for love.

“I immediately brought it way down,” Candy admits. Despite years of experience in turnarounds and investigations, she started charging $25 an hour. “I thought, oh, these people can’t afford New York prices.” Soon she was charging $350 a month to run entire businesses—handling bookkeeping, HR, compliance, even picking up mail. “I did everything.”

The financial collapse was swift. “I did everything I would never let a client do. I depleted my retirement account.” Credit cards maxed out. Cash advances followed. While living in a 600-square-foot house with a baby, she maintained a 1,500-square-foot office she couldn’t afford. The breaking point came when she couldn’t pay the minimum on her credit cards while two mortgages loomed.

“I was lying about my reality,” she confesses, “trying to live the same lifestyle I had in New York without making the money.”

The $6,000 Wake-Up Call

Desperate for solutions, Candy enrolled in a $6,000 marketing course for accountants. What she found shocked her. “It was ‘tired of doing hair? Be an accountant. Don’t want to fix cars anymore? Be an accountant.’”

These complete beginners were using scripts to close $4,000-per-month deals while asking questions like “What’s QuickBooks?” and “What is a bank reconciliation?”

“Literal morons in this group,” Candy says, still incredulous. “And here I am charging $350 a month.”

Even more infuriating were her male colleagues. They’d invite her on sales calls, knowing she had the expertise they lacked. After she’d solve all the problems and outline the work, they’d ask what she would charge.

“I might say, I know what I’m doing. I would do this for like $5,000 a month,” Candy recalls. “And they’d say, ‘$5,000 a month? Are you insane? I wouldn’t do this for less than ten.'”

When she asked if they knew how to do the work, they answered, “I have no idea, but you’ll clearly do it for five and I’ll charge them ten.”

The Real Cost of Underpricing

The research confirms Candy’s perception. Women in professional services charge at least 25% less than men, sometimes up to 50% less. “The median woman in an online labor marketplace in the US sets a bill rate that’s 13.5% lower than a median man,” Nancy notes.

But statistics don’t capture the human cost. When Candy asked her team what would make them happy, the answers broke her heart.

“I would love it if I could take my kid to the doctor when they were sick,” one employee said. “I would love to be able to go to the doctor when I get sick. I don’t have health insurance.”

Another employee, after receiving a raise, shared something that changed Candy’s perspective. She said, “This is the first time in my life that I’m living with somebody out of choice and not need. For the first time in my life, I am making enough money to leave.”

“Everybody needs to make a wage that they can live off of without a man,” Candy resolved. “That became one of my driving forces.”

The irony wasn’t lost on her. “I can’t help anybody if I have to shut this place down and get a job. The person I wasn’t helping was me or my team. I was helping everybody else buying second houses, boats and stuff. And here I am thinking we’ll just have spaghetti again tonight for dinner.”

The Day Everything Changed

After the marketing course revelation, Candy did something drastic. “I fired every client I had.”

Her husband was stunned. When he asked about the office rent she couldn’t afford, she told him, “I no longer have low-priced clients.” His next question: “Do you have any leads?” Her answer: “Nope, but now I can take them.”

Within 24 hours, she got a call about a potential client. “I said, sounds to me like it’ll be $3,500 a month. She just paused and said, ‘That sounds fair. Where do I sign?’

She replaced all her fired clients with just two new ones, each paying what dozens had paid combined.

Breaking the Cycle

The conversation reveals five essential strategies for escaping the underpricing trap:

Reframe from cost to value. “Because it’s easy for us, we price that way,” Candy explains. “Instead of charging for what we are bringing to the table: the education and the years of experience.”
Practice raising rates incrementally. Start with specific client groups rather than everyone at once.
Build community. “Don’t just go at it alone,” Candy urges. “Call somebody you respect.” During the episode, co-host Questian Telka realizes she’s underpricing a current cleanup. “I was underpricing it in my mind already,” she admits.
Model confidence for others. Show other women what’s possible through your own pricing decisions.
Recognize the long-term impact. When women underprice, they perpetuate industry-wide disparities and create businesses too fragile to provide security for their teams.

Candy now uses specific language that commands higher prices. When prospects aren’t ready, she tells them, “You’re not ready for a firm like me. Here’s where you need to be. When you hit this point, I’m the exact firm you want.”

For cleanup work, she tells clients, “If you need 12 months cleaned up and my monthly rate is $3,000, it’s the same monthly amount for the cleanup. If I discount it, you’re going to say, why did I sign on monthly?”

And always, “If you don’t pay me up front, I don’t lift a finger.”

No Margin, No Mission

Nancy shares a piece of wisdom she heard from a client: “No margin, no mission.” Without sustainable pricing, there’s no health insurance for teams, no living wages, no ability to weather crises like caring for aging parents.

Candy dropped her own family’s health insurance until everyone on her team could have it too. “Until we all have health insurance, nobody has health insurance,” she announced. The urgency drove her to find the revenue quickly.

“These things that are important to me,” she says now. “If clients don’t want to work with us the way we’ve got things set up, they’re not our client.”

Your Next Step

This episode strips away the polite veneer covering pricing discussions in accounting. The gender wage gap isn’t just about employment. We recreate it every time a woman undervalues her expertise.

As Oprah says, “You get in life what you have the courage to ask for.”

The conversation already changed Questian’s pricing. It just might change yours too.

Join the conversation by following the She Counts Podcast LinkedIn page and comment under “Marking Ourselves Down.” Do you struggle with pricing and asking for what you’re worth? The hosts want to hear from you about topics for future episodes and would love your reviews to help other women in accounting find this community.

Find Candy on LinkedIn and learn about her firms, Kramerican Business Solutions for controls work and Vandelay Forensic Group for fraud investigations. Yes, both are Seinfeld references, and yes, she just passed her private investigator exam.

Listen to the full episode to hear more of Candy’s story, including details about her financial recovery and the specific strategies she uses to maintain sustainable pricing today.