When I am out at a cafe, shop, or other outings, many times someone asks “You’re find this accountant?” What is the estimated cost of this? And asks me how I calculate it. I will tell you about a little secret… I am an accountant. Not a mathematician. If my calculator is not available, don’t ask me for any calculations. I will share some more secrets with you. Here are the top 10 Accounting myths.
#1 Accounting Myth
Accounting revolves around math. You can use math to help engineers, hair stylists, lawnmen, and other salespeople. All steps are necessary to receive your money. These include calculating the amount you owe as well as the change if the cash is in cash. Calculating your commission percentage. Accounting works in a similar fashion to math. Accounting is about accounting for assets and liabilities as well as income and expenses. But the heart of true accounting lies in research, storytelling and analysis. Do you enjoy solving puzzles and putting together pieces? You are trying to find the missing piece in your accounting book. These numbers can be used for information purposes, such as to inform shareholders, owners or bank managers about the meaning of the numbers and how best to use them. Analytics, not algebra.
#2 Accounting Myth
Accountant = Tax Preparer / IRS Agent. Oh so wrong, wrong, wrong. Signing up for a major franchise tax chain will likely mean that your taxes are prepared and filed by a certified “tax preparation specialist” rather than an accountant. Accounting degrees are the true definition for accountant. Yes, taxes were prepared as soon as my college graduation. It was because I was working for a partner who had some tax clients that I only had to do this. I mostly audited corporations. This does NOT necessarily mean that they are subject to a tax audit. It means I went into the company and looked over their books. After that, I left. Following that, I would prepare a report with suggestions and areas for improvement. This is a short summary of what an audit of a company looks like. Many accountants work in private companies and provide financial information to managers and owners.
It’s a red signal that someone is claiming they are an accountant. This is something I hear secretaries or bookkeepers saying all the time. It’s not meant as a criticism of secretaries and accountants. I respect all of them and appreciate their work. They won’t know who I think they are. This is not fair about their qualifications and who they are.