Accountants are not mathematicians; neither are they bookkeepers, teachers or any other profession that you think their roles should extend to. For some of the most common accounting myths, read on below.
Accounting is about Math
An accountant is not a mathematician, and although they use numbers many of them won’t be able to get by without their calculators. Accountants use some principles of math, but their main responsibility is to account for expenses, income, liabilities, assets and other factors that affect the bottom line.
An Accountant Could Prepare Your Taxes
While some accountants have the ability to prepare taxes, you cannot classify an accountant as a taxer preparer. When they audit a company’s books, it is to check for accuracy, not perform a tax audit.
You should also beware of bookkeepers or secretaries calling themselves accountants. If they did not earn a certification in the field, they cannot claim the title.
Accounting is for Men only
The field of accounting is not gender biased. Many women are now entering this field, and they’re every bit as competent as men. The next time you go looking for an accountant don’t be surprised if you’re greeted by a well capable female.
Accountants are Boring
Accountants like to socialize just as much as anyone. The type of work they do call for a degree of seriousness and a level head, but once the chore is over accountants like to let loose. You’re just as likely to see an accountant on the dance floor, at the swim meet, or ski lodge as you would any other professional.
Small Businesses don’t need Accounting
Think about it. Does a small business need a budget, financial projections, business trends, a review of funds available for expansion and tax advantages? If your business needs these things, then you need an accountant.
An accountant will watch your back and ensure that your income is reported to the IRS. Your accountant will keep up with your financials and do the projections needed to secure loans. These are just some of the things that an accountant will do for your business.
An Accountant will Cost a Fortune
Go for a top rated firm and you’ll definitely need to pay out a small fortunate to secure the services of an accountant. However, there are many solo accountants who will provide the same professional services for much less. Consider your needs and find a competent accountant whose services are in line with your budget.
I Don’t Need Accounting Reports To Know How My Business Is Doing
Just because your company has a lot of contracts don’t mean that your business is doing well. Accounting reports will show you if your income is covering your expenses and will also point out potential problems with pricing, salaries, theft, loss, waste and more. When you discover any discrepancies you can make the necessary changes to improve your efficiency and profits.
I Use QuickBooks so I can handle my accounting myself
The last myth is the most destructive belief of them all. While QuickBooks is a valuable program, it cannot replace your need for an accountant. In fact, the simple interface can become confusing when you discover how you’ve been making entries in the wrong field. You’ll then have to call in an accountant to fix all the mistakes, which could get costly.
Ann accountant could set up your company in QuickBooks and point on entries that you can make daily. Then you can have the accountant come in once a week to interpret reports and see that everything is entered as they should.