Know About Top 6 Accounting Myths Not To Follow

The accounting business is one tricky domain to work in, and one needs to have a clear head and no confusion regarding accounting and its financial myths. Business and tax accountants play a crucial role in the successful run of a firm. There are numerous myths about all types of accounting flowing like a river around us, and there appears or looks to be no end to it. 

The primary reason for the downfall of any business firm is the absence of an accountant. No firm can function for a long period of time without an efficient accountant for business taxes. Detailed and accurate financial statements are all the gifts from the accountant of the business. 

However, people remain entrapped in this jungle of myths about accounting services and eventually fail. Let us try debunking some accounting myths for you. 

1) Accounting is only about crunching the numbers.

If you aim to be an accountant, you must know that accounting is a game that’s more than just about numbers. There is a common myth in the market that if a person is capable of crunching the numbers, they’re going to ace in the field of an accounting business. This myth needs to be busted. 

Networking is the key to the successful running of any accounting business. Thus, the accountant must be capable of performing this function. He also should get involved with the company and its initiatives and provide feedback on the same. 

An efficient accountant also provides his ideas and suggestions regarding the company’s strategies. Therefore, accounting has so many essential elements to it, besides bookkeeping. 

2) Accounting is a monotonous job.

There is a prevailing misconception in the world of business and accounting. The masses assume accounting to be a tedious job. This perspective needs to be changed as there are many compelling and different types of accounting fields available. 

One can become a business tax accountant and help the firm or clients file taxes, review financial statements, draft future tax returns, etc. The accountant for business taxes is one crucial part of a firm. The other fields of accounting include auditing, governmental accounting, forensic accounting, etc. 

Some accountants don’t always go to the same office as they have different clients in different parts of the world, giving them the thrill of travelling. It is not a boring job for everyone as it also provides one with the contentment of being able to strategize and implement initiatives.

3) Accounting is essential only for big businesses.

Small business owners tend to believe that accounting is an activity for the richest. They often seem daunted by the whole process of it. They consider accounting to be complex and time-consuming. Their mindset allows them to assume that only big and profitable businesses can carry out accounting. Their belief in such type of accounting and finance myths can be troublesome for their firm.

Business and accounting go together like coffee and doughnuts. They can’t sustain themselves without each other. They are codependent. Small businesses require to comprehend the significance of an accountant for business taxes. Without the help of a business accountant, it would be difficult for a firm or person to prepare their financial statements. 

Without proper financial statements, it will be wearing to get financial loans. Thus, accounting is vital for all kinds of businesses.

4) Not all businesses need accounting software.

What is accounting software? In simple terms, it is a digital program used for accounting by businesses these days. It can enhance and interpret data by using Artificial Intelligence. This helps the business and tax accountants in the management of accounts. 

It is easier to record financial transactions with the help of accounting software. Small businesses think that it is not a necessity and would cost them a fortune. However, this is not the truth. There’s a variety of accounting software available in the market at different rates, and businesses can choose the software based on their preferences. Certain platforms even offer free packages.

According to research conducted by Statista the proportion of small and medium businesses that use accounting software is more than 64%. It has become absolutely imperative for the business accountant to stay updated with advanced technology in this digital age.

5) The accountant must be a Math Whiz.

Not every accountant excels at Math, and not every accountant needs to. Knowing basic mathematical concepts and their application is, most of the time, enough. A business accountant does not need to know all the advanced mathematical formulas; that’s the work of a Mathematician. Business and tax accountants are also provided with a calculator for easier accounting.

In this modern age, there have been several technological advances that help accounting businesses in the smooth functioning of their operations. Technology has therefore lessened the burden on accountants. 

6) Accounting is not a profession for women.

One of the biggest myths that need to be debunked is that of accounting being a male-dominated field. Many people believe that women aren’t capable of becoming business and tax accountants, which is untrue. Women have started showing interest in accounting businesses, and they know about the management of finances. 

As per the records of the American Institute of Certified Public Accountants, during 2013-14, around 47% of students who enrolled to study accounting were women. According to the Census of Canada in 2016, 50.3% of all auditors, accountants and investment professionals are women. Women are realizing their potential, and accounting is no longer a profession dominated by males. Women are also in positions of leadership. 

Key Takeaways

Thus, by analyzing the misconceptions prevailing in the market about accounting businesses and their accountants, we are now clear about how some myths will always remain myths and never a reality.

There are so many financial myths that still need to be busted, and at the same time, the importance of accountants for business taxes cannot be stressed enough. Accountants are not mathematicians and definitely, not boring. Not all accountants are socially awkward. Thus, the above-discussed six accounting myths need not be agreed upon or followed.