Accounting Myths

When I go to a shopping mall or restaurant, many times someone in my family or group of friends says to me “You must have the accountant.” How much? It is asking me to calculate something in my head. Let me tell you something… I’m not an accountant. I don’t have an accountant to help you if your calculator doesn’t exist. Let me tell you about some other secrets. You can find Accounting myths in the list below, get more information.

#1 Accounting Myth

Accounting is all about math. It couldn’t be more true. Math is used by sales people, engineers, marketing personnel, lawnmen, hairstylists, etc. You will need to calculate your share of the commission, the amount owed and the change in cash, if any, to get paid. The math is the same for accountants. Accounting is the recording of assets and liabilities, incomes, expenses, income, and so on. True accounting involves research and storytelling. Do you enjoy solving puzzles or creating new ones. Accounting numbers are a great way to find the right piece. These numbers can be used to explain to a shareholder, manager, bank or manager what they mean and what they can do for them. Analytics is the key, but not algebra.

#2 Accounting Myth

Accounting = Tax Preparer/IRS Agent. Oh so wrong, wrong, wrong. If you belong to a tax franchise or chain, it is likely that your taxes were prepared and filed by a qualified “tax Preparer” rather than an accountant. A degree in accounting is the only valid definition of an accountant. Yes, I did tax preparation in college for a public CPA office. However, that was because one of my partners had some clients. I audited companies. But, they weren’t subject to a tax audit. Then I went into their books and double-checked for accuracy. They would then receive a report highlighting areas that need improvement, as well as positive points. This is the summary of the company audit. Private accountants can often compile financials for owners and managers of companies.

A person claiming to work as an accountant should not be taken lightly. This is a claim that I’ve heard from bookkeepers and secretaries. They don’t seem to understand the difference between a diary entry or a cup of tea. It is not my intention to disrespect bookkeepers and secretaries. All of them are highly respected and I am grateful to them. But they are not accountants. I will not tell clients they are accountants. This is not an accurate representation of their qualifications and who they are.

Leave a Reply

Your email address will not be published. Required fields are marked *