Discovery why these accountant myths are false!

What’s the craziest thing you’ve heard about an accountant?

This article is inspired by a section in my book’s first chapter, discussing common myths about accountants. I have come to know those myths over time as I have met and dealt with many business owners.?

Myth 1: Accountants have successful businesses.?

Believe it or not. Not all accountants operate successful practices. Accountancies are just like any other business. Some accountants operate in a disorganised and chaotic way. In many cases, they face cashflow problems. And those accountants would not be able to assist you to heal your business’s cashflow problems.?

Myth 2: Accountants are only good with numbers.

You can’t imagine how many times I was told: “You must be good with figures, you are an accountant!” Although that’s very true, it's not my only strong suit. As an accountant, I am also good at marketing, law, building relationships, and other useful business skills. A good accountant will have excellent business experience, and hence would be able to provide you with solid recommendations on various business issues such as growing your team, or developing your business strategy.?

Myth 3: I only need an accountant to prepare my tax returns.

Has your accountant taken your box of receipts and told you to meet again in 9 months?

Don’t you think 9 months to prepare tax returns? That time period is too long! It would take much less time to prepare your tax returns if your accountants have organised your finances in a systematic manner.?

Plus, accountants can do so much more. The right accountant would be knowledgeable enough to set up systems that ensure cash flows so that you can run and maintain your business.

Myth 4: Business owners can do their own bookkeeping.

Software companies have created various user-friendly software targeted toward business owners and marketed as simple & straightforward no-accountant software that any business owner could use for bookkeeping. Unfortunately, this widened the gap between the accountant and the business owner. I believe that despite that software is user-friendly, it is indeed no substitute for an accountant.?

I have worked with this one particular client who did their own bookkeeping and tax returns using the new bookkeeping software. The quality of the work was not up to HMRC par. So, I had to completely redo 12 months’ worth of VAT returns that were incorrectly done.?

Myth 5: I only need an accountant to look after my business

From my experience in accountancy and tax advisory, I have come to the conclusion that the business and business owners are a unit, and that the financial position of one impacts the other.?

For example, when deciding the personal allowance of a business owner, if they have other income sources besides their company, this would result in not including the personal allowance when setting up a salary strategy.?

This indicates the financial co-dependence of the business and business owner. Something only a well-experienced accountant can spot and address effectively.?

EMCO Financial Services

At Elena Meskhi& Co., our high calibre team is solid proof that all those myths are wrong and that a good accountant is not just a bookkeeper, they’re a financial partner. Reach out to discover essential business services and compliance services tailored to your business needs.?

And stay tuned for next week’s article where we discuss the accountant’s duties & responsibilities towards you and your business.?