A Few Common Accounting Myths

We often mistaken accountants as genius mathematician, that when we need something calculated like the tip for our server in restaurant we can have our accountant friend to do it in an instant. Unfortunately, they are not rainman, their job requires them to have without a shadow of a doubt accurate computations, so they are pretty much trained to work with calculators. I am not saying that all accountants are unable to do mental arithmetic, I am just saying that they are trained to use the calculator, literally, in some schools there is an actual class where they are trained to use the calculator efficiently.  So now that you know, let’s talk about a few more misconceptions and straight out myths about accounting.

1.) You Don’t Need One Unless If You Are Rich

Often times we think we can handle things on our own, not needing help with anything until it is just way beyond our capabilities. This is a terrible way to think, just as you would need to spend more when you are sick than you would just maintaining a good health, calling in accountant to fix your taxes and financial mess will cost you a fortune. It is important to have an accountant no matter how small your business is or how middleclass you are, having a competent accountant who you can also be a friend will allow you to avoid terrible financial mistakes, pay less taxes, and not worry too much about the numbers. Who knows, thy might even help you make decisions that will make you rich.

2.) Accountants Are Expensive

If you’re a small business with a hotdog stand, you will need an accountant, but that doesn’t mean you should go to a big accounting firm. Just like other professionals, accountants can be pricey, but if you look for a small firm or individual that is competent and honest you can get just as good of a service that those big shot accounting firms can give, for a very affordable price.  Doing business with a small firm or individual also has its benefits, you can get to know them personally and you are not just treated as a client in a file cabinet full of clients.

3.) I don’t need Accounting Reports, I Know How My Business is doing

So you don’t need reports because the clients are pouring in and you always have money in the bank? Sound good, but the BOOM! Little Amy selling her kidneys for school supplies! You don’t know what happened, everything seemed to be doing well and now you’re rock bottom! Okay, so maybe it won’t be THAT bad, but you should know that these reports will allow you to properly adjust prices, pay the least amount of taxes as possible, and keep your business going. You can’t know everything through the external view, just as you need a checkup from the doctor every now and then you need to let an accountant see to the health of your business.

doing accounting work

4.) Quick Books Can Replace My Accountant

It’s like saying your gun can protect you, so you don’t need the police. While it is a tool that can help you defend yourself, that is all it is, a tool.  Quick Books is a great program, but you need someone to show you how to use it and set it up, also to check it every now and then for any discrepancies. It can make both your accountant’s and your life easier, but it can’t replace your accountant. You can talk to your accountant, he can be your friend, and he knows things about tax deduction your quick books don’t.

There is a lot more things about accounting and accountants that people need to know, but instead of reading about it, find an accountant and ask about what he can do for you today.