Accounting Myths: Fact or Fiction?

Many people have preconceived notions about accountants, but are most of these stereotypes true? Yes, for the most part, but there’s also so much more to an accountant than just filing taxes. To start off, accountants do more than just taxes, they also perform audits, financial management, and ensure regulatory compliance for businesses. The wide range of competencies needed as an accountant are necessary for unique problem-solving and challenges in the field. Here are some accountant and accounting firm facts that may surprise you.  

Excellent math skills are required 

Not true, because of tax software, database programs, and the invention of the calculator, all you need is basic arithmetic. What’s more useful as an accountant is an investigative personality and the ability to remember complex financial rules, regulations and tax law. Being good at math is helpful but being able to apply financial criteria and analyze large data sets is an asset.  

Accountants are inconsequential to business decisions 

Creating financial reports and analyzing business performance are essential to making data driven business decisions. Accounting oversight is a strategic part of any successful company. The key function of an accountant is their ability to interpret financials and discover growth opportunities. Their goal generally is to maximize profits.  

I can hire an accountant and leave all the finances to them 

Accountants are more like consultants and a source of financial information rather than a paperwork administrator. They provide business advice, like how to reduce overhead, assist in loan applications, and help protect assets. However, a business owner still needs to be involved in the decision-making process. No matter how much advice an accountant gives, it will always ultimately be the choice of the business owner to act.  

Your Business. New Heights. 

Rise CPA provides professional accounting, tax and business advice to help you make the right decisions at the right time. Since 1979, we’ve been helping clients create businesses and lifestyles they envision by delivering expert insights and financial guidance. At Rise, we excel at advising business owners and their families in a caring and personal way. Our services cover a wide range of Tax Planning, Auditing, Accounting, Estate Planning, and Business Advisory. Please call (604) 936-4377 or use the online contact form to book an appointment with one of our accounting professionals.