Yes, some accountants do taxes, but not all. As a CPA, I am an auditor, accountant, consultant, and tax preparer. My goal is to not only provide tax advice and preparation for individuals; I also want to help improve the processes and efficiencies of businesses, report their financials, and focus on what I love (accounting) while they focus on what they love (their business). People don’t go into business to focus on accounting, but accounting is a major piece of every business. Most people have a love/hate relationship with accounting. Why spend time on doing something you hate, don’t understand, or don’t have time for when you can outsource it someone who loves doing accounting and that’s why they want to help?!
So I want to share some of my top 5 myths about who accountants are and what we do for individuals and businesses!
Pam’s Top 5 Myths about Accounting/Accountants:
1. Accounting is about math – Like I mentioned before, this could not be further from the truth but this the myth I hear the most! Yes, I love math and yes, accountants use math…but so does an engineer, salesman, marketing person, lawn man, hair stylist, etc. If you want to get paid, you will have to calculate the amount you are owed, the change if paid in cash, your commission percentage, etc. Accountants use math similarly. The core of true accounting is research and storytelling. Accounting is like a puzzle; when you look at the numbers, you are looking for holes and patterns that fit together properly. You have to use those numbers to tell the owner of a business, shareholder, bank, or manager what they mean, how they can use them, and what to expect in the future. Also, accountants are excellent at risk management, process improvement, and creating efficiencies and controls in the workplace. This is more of a consultative role which I enjoy most, and there are very few numbers involved.
Your accountant will be following your financials the entire year and everything should be neat and clean come time to file your taxes. Also, your accountant should be able to give you monthly financials that tell you where you can improve in an area, have reports ready for possible loans, help you make financial decisions, help you make the most of recent tax advantages, and tell you if your business will trend towards lower or higher revenue in certain months based on history. This is all needed information to help grow your business.
Of course there are myths about every profession that are endless. However, these are the ones I hear the most and I just wanted to bust the myths and show the benefits that accountants really have. Accountants, CPAs in particular (how I got that designation is worthy of its own separate post…) play a vital role in helping businesses make better use of their resources and increasing efficiencies and profitability. With careful planning and help from an accountant, you can learn how to start, manage, and successfully grow your business. Accountants are trained to look at businesses with an objective eye. They can help you identify weaknesses in your organization and offer suggestions for improvements. A CPA/accountant can be your most valuable business partner!
Additionally, accountants can help individuals become tax advantageous, prepare and save in their taxes, create and maintain budgets and meet their financial goals.
If you have any questions or are inspired and feel like you need an accountant now, feel free to contact me. I love meeting new people, building new relationships, and improving and growing businesses!
These myths are exactly how I feel and were also inspired by an article I’ve read while doing research: “Top 10 Accounting Myths – Busted!” by Mindy Viteri.