Accounting Myths

Every time I go out for a meal, shopping, or outing someone in my family or group tells me, “You’re our accountant.” How much is that? He wants me to think of something. I’ll tell you a little secret… I am not a mathematician. I will not calculate anything if my calculator does not work. You will also discover some secrets. Here are the top 10 Accounting myths, check my blog.

#1 Accounting Myth

Accounting requires math. A salesperson, engineer, or salesperson may use math in order to calculate the amount due. A hair stylist, a lawnman, and a marketing professional, for example, can also use math. You will need to calculate your owed amount, adjust if cash was used, and calculate your commission percentage in order for you to be paid. An accountant uses the same math. Accounting involves the accounting of assets and liabilities, income expenses, income, etc. However, research and storytelling are the core of true accounting. Do you enjoy solving puzzles and research? Looking at accounting numbers is like looking for puzzle pieces. These numbers will be used by you to communicate with your bank, shareholder, manager, or owner of the company what they mean, how they could be used, and what the future holds for them. Analytics, not algebra.

#2 Accounting Myth

Accountant = Tax Preparer/IRS Agent. Oh so wrong, wrong, wrong. Your taxes will be prepared by a “tax Preparer” when you visit a major franchise chain tax shop. Accounting degrees define an accountant. Yes, my taxes were done right out of college while I worked for a public CPA. But, it was because my partner had only a few clients in tax. I mostly audited small businesses. This does NOT mean I did a financial audit. This is when I went to the company and reviewed their books. Then I would present a detailed report to the company highlighting areas that could be improved and areas that were good. This is an overview of a company audit. Managers and owners often hire private accountants to compile financial reports. Others assist with fraud detection or investigation. While others may only consult on a variety of topics, accountants are often employed in the private sector.

Be careful when someone claims to be an accounting professional. These statements are often made by secretaries or bookkeepers. They don’t understand the difference between a diary and a coffee maker. This is not meant as a criticism of secretaries and bookkeepers. All of them deserve respect and appreciation for their hard work. I won’t tell my clients that they are accountants. This is not a fair and accurate representation about who they are or what their qualifications are.

Leave a Reply

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