Forgot Password?

Busted! Don't Believe These Accounting Myths!

Rand Holyoak   | 

Busted! Don't Believe These Accounting Myths!

An accountant’s job is to compile, analyze, verify and prepare financial records to ensure lawful, efficient and compliant business practices. The accountant monitors and records the flow of money through a business or organization. They are responsible for their company’s financial health. 

Though an accountant provides a range of services to clients, there are certain myths circulating about what they do or don't do. Occasionally, this can lead to a business owner or individual being unsure of how an accountant can help, and potentially missing out on the value accounting services can provide them.

If you’re considering hiring an accountant but need the air to be cleared before you do, Holyoak & Company has debunked some of the most commonly believed accounting myths.

1. Accountants only do taxes

There is a misunderstanding that accountants only do your taxes. For business owners, it is important to realize that accountants can help you keep up-to-date with your books all year. So come year end, calculating your income and expenses will be more accurate.

In addition, if your company does not implement effective accounting habits, it is possible that you are leaving money on the table, exposing yourself to unnecessary financial risks. Fortunately, many businesses are now recognizing the importance of an accountant’s innovative skill set in contributing to their success.

An accountant’s duties may also include determining and maintaining payroll requirements and data, explaining billing invoices and accounting policies to staff, vendors, and clients and preparing and reviewing budgets, revenue, expenses, payroll entries, invoices, and other accounting documents.

It should also be noted that accounting is not only limited to business or personal finances. Accounting has several branches, if one was to pursue the profession, for example, financial accounting, managerial accounting, cost accounting, auditing, forensic accounting and non-profit accounting. Each of these has their own unique applications that contribute to various types of organizations.

2. Accounting is just math

An accountant’s abilities are more related to business acumen than mathematical competency. In addition to formal educational training such as gaining a business and accounting degree- accountants actually require a range of skills to stay relevant. These skills include strong interpersonal communication, customer service, analytical thinking, and even writing.

The government has created a complicated industry of rules, regulations, and guidelines for personal and business taxes. Accountants know all the ins and outs of these laws, and can best help you apply them to your particular situation.

3. Accountants are expensive

Many smaller businesses shy away from professional accounting because either the business might seem too small for it or it might not be worth the money. But there are different levels of service, and unless you’re doing something extremely complex, most accountants are reasonably priced. Remember that accountants have been thoroughly educated, and are implementing on a daily basis all the rules and regulations in the industry. They are extremely beneficial for personal and business matters. The cost is minimal compared to fines, late fees, and poor financial management.

If you’re looking for professional and efficient accounting services in Utah, get in touch with the experts at Holyoak & Company. We are a one-stop shop for all of your accounting needs, from bookkeeping and tax preparation to payroll and consulting. Our accounting firm will help you lower your taxes, manage your cash flow, and maximize your business potential. At Holyoak & Company, we aim to be more than just your accounting firm. For a complete list of our services, please click here. If you have any questions about Holyoak & Company, we’d love to hear from you, please contact us hereClick to schedule an appointment