So many times I am out at a restaurant, store, or outing and someone in my family or group of friends says “You’re the accountant, how much is this?” and wants me to calculate something in my head. I am going to let you all in on a little secret… I am not a mathematician, I am an accountant. If my calculator is not near, don’t ask me to calculate anything. I am going to let you in on a few more secrets as well. Here are 7 accounting myths that I will bust for you.
Accounting Myth #1: Accounting is about Maths.
This is the most common of the accounting myths and could not be further than the truth. Yes, accountants use math. Everyone does. Example: an engineer, salesman, marketing person, lawn man, hairstylist, 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. Accounting is accounting for assets, liabilities, income, expenses, etc… yes; however, the “meat and potatoes” of true accounting is research and storytelling. Do you enjoy putting a puzzle together? Well, in accounting, when you look through those numbers you are looking for holes to put that right piece into. 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. It’s analytics, not algebra.
Accounting Myth #2: Accountant = Tax Guy
Wrong! Understand that when you enter a major tax franchise or chain your taxes are most likely being prepared by a trained “tax preparer” NOT an accountant. The true definition of an accountant is one who has a degree in Accounting. Yes, accountants can do tax. The accounting degree may have tax as a major, but this does not mean that all accountants are tax experts. The reverse is also true.
Be careful when someone says they are an accountant. I hear bookkeepers say this all the time and they don’t know the difference between a journal entry and the banana. Not to anyone. I respect them all and I greatly appreciate their work as part of the team to get the result.
Accounting Myth #3: An accountant is an accountant is a bookkeeper – they are all the same.
OH NO! You did not just say that! A bookkeeper is not an accountant. In South Africa, a bookkeeper is generally, not qualified, whereas an accountant is. That is the differentiating factor and the reason for the difference in title.
An accountant is not always a chartered accountant (CA). CA(SA) is a highly sought after and distinguished degree involving many years of hard work and lots of exams.
These differences do not mean that some are more important than the others. The job they do differs but are all vital to the outcome. What must be said is that a CA(SA) can do all the functions whereas an accountant does some of it and the bookkeeper can only do that function. Its like a ladder you can perform down the ladder but not up.
Accounting Myth #4: Accounting is for Men only.
No. Just NO! NO! Accounting myths like this irritate me! Women accountants are exceptional accountants and personally treat them as equals, if not better than men.
Accounting Myth #5: Accountants all do tax.
Um, no! While many accountants can do tax, many don’t. We all have tax knowledge and it forms a big part of our Continual Professional Development (CPD), it is often not liked by accountants. Tax is a distinct and different topic to accounting, as is Payroll. Personally, I do tax on a superficial level. This means that there is a limit that I will hit and will pass it onto someone who knows better than I do. As people do with me and accounting or payroll.
“this is not my strong point, please can you do this” is a common phrase said by me and to me. Some accountants don’t touch tax AT ALL. It can get very technical very quickly. Unlike accounting principles, tax changes quickly and often. It also changes between countries. There are many different types of tax. each of these can be a specific niche for a professional to do.
Accounting myth #6: Accounting is boring.
Um NO! As an accountant in practise, I have many clients meaning, I get to do anything at any stage for any of them. From a business owners point of view, this may be the popular opinion but it is actually an incorrect mindset to have. This is one of the more annoying accounting myths and it is a mindset that needs to be changed.
It is boring because there is no goal or no outcome that you can see. Often, the information is misunderstood and vague and the result is not something you can use in your day-to-day dealings. My clients are encouraged to be involved in the process and my aim is to get them involved and be in control of there accounts to a level that it is a help to them in their daily business. I do much of the work behind the scenes which could be regarded as the “boring stuff”. They benefit by having the information at their fingertips at any stage as well as knowing it is accurate.
Accounting myth #7: Automation will take away accountants.
Aaaah, the favourite topic of the world today. I will say this as I have said many time before, AI will NEVER take the place of the accountant. In fact, the accounting industry was WAY ahead of AI and is only being caught up now. Online systems came about in the early 2000’s and much of what the accountant does is automated but that is where it ends.
The next big thing in the accounting industry is humans. It is the human brain that can make sure the information is accurate and complete and then using it to enhance the companys’ performance.