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Accounting Myths

Many times, when I’m at a restaurant, shopping mall, or other outings, someone in my family, or group of friends, says to me, “You must be the accountant. How much?” It wants me calculate something in my head. I am going tell you something… I am not an accountant. You don’t have to ask me to do anything if your calculator is not nearby. I’ll let you in on some other secrets. Check out the list below for Accountants Glasgow myths.

#1 Accounting Myth

Accounting has to do with math. It could not be more true. Yes, math is used by engineers, sales people, marketing personnel, lawn men, hairstylists, and so on. In order to get paid you need to calculate the amount owed, the change in cash if paid, and your percentage commission. Math is the same for accountants. Accounting is the accounting of assets and liabilities, income, expenses, income, etc… Yes, but research and storytelling is what true accounting is all about. Do you like solving puzzles and building new ones? You can find the right piece by looking through accounting numbers. To explain what those numbers mean to the owner of a business or shareholder, manager, bank, or manager and how they can help them, as well as what to expect in the near future, you need to use them. Analytics is the key, not algebra.

#2 Accounting Myth

Accounting = Tax Preparer/IRS Agent. Oh so wrong, wrong, wrong. If you are a member of a large tax franchise or chain, it is most likely that your taxes have been prepared by a trained “tax Preparer” and NOT an accountant. Accounting degree is the only true definition for an accountant. Yes, I did tax preparation right out of college for a public CPA office, but that was only because one of my partners had a few clients. I audited companies. This does however not mean that they were subject to a tax audit. This is when I went in to their books and double-checked them for accuracy. We would then provide them with a report on the areas that needed improvement as well as those that were positive. This is a summary of the company audit. Private company accountants often compile financials on behalf of the owners and managers.

Someone claiming to be an accountant should be taken very seriously. I have heard bookkeepers or secretaries make this claim all the while and they don’t understand the difference between a diary entry and a cup of coffee. To not undermine bookkeepers and secretaries. All of them are respected by me and I am grateful for their efforts. However, they are not accountants. I will not tell my clients they’re accountants. This is not a fair representation of who they really are and their qualifications.