Prime 10 Accounting Myths

So many occasions I’m out at a restaurant, retailer, or outing and somebody in my household or group of pals says “You are the accountant, how a lot is that this?” and needs me to calculate one thing in my head. I’m going to allow you to all in on a bit of secret… I’m not a mathematician, I’m an accountant. If my calculator just isn’t close to, do not ask me to calculate something. I’m going to allow you to in on just a few extra secrets and techniques as nicely. Learn beneath to seek out the highest 10 Accounting myths I’ve put collectively.

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Accounting is about math. This might not be additional than the reality. Sure, you employ math, however so does an engineer, salesman, advertising and marketing individual, garden man, hair stylist, and so on. If you wish to receives a commission, you’ll have to calculate the quantity you might be owed, the change if paid in money, your fee proportion, and so on. Accountants use math equally. Accounting is accounting for property, liabilities, revenue, bills, and so on… sure; nevertheless, the “meat and potatoes” of true accounting is analysis and storytelling. Do you take pleasure in placing a puzzle collectively? Properly, in accounting, once you look by these numbers you might be in search of holes to place that proper piece into. You must use these numbers to inform the proprietor of a enterprise, shareholder, financial institution, or supervisor what they imply; how they will use them; and what to anticipate sooner or later. It is analytics, not algebra.

#2 Accounting Fantasy

Accountant = Tax Preparer or IRS Agent. Oh so fallacious, fallacious, fallacious. Perceive that once you enter a serious tax franchise or chain your taxes are more than likely being ready by a skilled “tax preparer” NOT an accountant. The true definition of an accountant is one who has a level in Accounting. Sure, I ready taxes proper out of school once I labored for a public CPA agency, however the one purpose that I used to be required to do such was as a result of the companion I labored for had just a few tax shoppers. Primarily, I audited firms. This doesn’t imply a tax audit. Because of this I went in, checked out their books and spot-checked for accuracy. After this, we might give them a report on wanted enhancements and areas that appeared good. This can be a very temporary abstract of an organization audit. Many accountants work in personal firms compiling financials for the managers and homeowners, some work in fraud analyzing the place they assist firms detect or examine fraud, whereas others merely seek the advice of on numerous subjects.

Watch out when somebody says they’re an accountant. I hear bookkeepers and secretaries say this on a regular basis and they do not know the distinction between a journal entry and the espresso pot. To not undermine secretaries and bookkeepers. I respect all of them and I enormously recognize their work as I’ve many engaged on my workforce, however they’re NOT accountants. I can’t inform my shoppers that they’re such. This isn’t a good description of who they’re and their .

#three Accounting Fantasy

Accounting is for Males solely. In each firm the place I’ve been employed or labored with, the ratio of girls to males is both 50% or increased within the ladies’s favor. As a matter of reality, most are dominated by ladies. Sure, I’ve seen principally males within the government positions, however ladies are rising shortly on this space as nicely. As many firms see that ladies can steadiness household and work [most times better than you guys], they’re respecting the talents and of girls in these fields. Now guys, you aren’t being pushed out. This can be a great spot for each sexes to point out their potential. Simply do not anticipate your gender to find out your home within the accounting world.

#four Accounting Fantasy

 

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