FEW COMMON ACCOUNTING MYTHS WHICH APPLY TO EVERY COMPANY INCLUDING THE LEATHER CARE BUSINESS

First it’s important to have a clear image of what an accountant does. Your average, everyday accountant updates financial information for businesses, government groups, or individual clients. They carefully comb the balance sheets to make sure everything is correct and current. Some accountants are employed by large firms, while others are independent contractors. Some work full-time for one company, and some work part-time, putting in more hours during tax season or end-of-year budgeting. Becoming an accountant gives you a lot of options, including the freedom to specialize in a specific area based on your interests. With this in mind here are a few accounting myths.

Accounting is about math. This could not be further than the truth. Yes, you use math, but so does an engineer, salesman, marketing person, lawn man, hair stylist, 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…

Accounting is for Men only. In most companies I have seen, the ratio of women to men is either 50% or higher in the women’s favour. As a matter of fact, most are dominated by women. Yes, I have seen mostly men in the executive positions, but women are growing quickly in this area as well. As many companies see that women can balance family and work [most times better than you guys], they are respecting the abilities and qualifications of women in these fields.

Accountants are introverted or boring and really don’t like working with customers. Even a tax accountant has to be a people-person. We all have to work with clients, employees, vendors, client’s customers, etc. I love this field because of the people interaction. To take accounting and turn it into understandable language for your clients who range from Funeral Homes to Hair Stylists you need good interactive skills. I get to teach them how their numbers can tell them the stories they need to hear and what their futures may hold.

Small Businesses don’t need accounting or it can just wait until it’s get to be too much for me to handle myself. Ok, so this means that as a small business owner, you would say that you don’t need to budget, forecast financials, know about trends in your business, or know the latest, greatest tax advantages.

Every business needs an accountant watching their back. Now, this person or company needs to be trustworthy and competent, but you need them, all the same. A business cannot and should not be run based on whether or not there is cash in the bank at that current time.

Your accountant will be following your financials the entire year and everything should be neat and clean come time to file your taxes. Also, your accountant should be able to give you monthly financials that tell you where you can improve in an area, have reports ready for possible loans, help you make financial decisions, help you make the most of recent tax advantages, and tell you if your business will trend towards lower or higher revenue in certain months based on history. This is all needed information and once my clients come into my services, they are amazed that they were ever able to run their business without my services.

I pay business expenses out of my own pocket. It’s really no big deal. WRONG. If you own or operate a business, it is a business, not your spouse. You need to note when you have paid an expenses out of your own pocket. This is money that could be returned to you tax-free.

Why accounting consulting is important in leather companies

I really don’t need accounting reports to know how my business is doing. If you are busy, this does not mean that your business is doing well. You need reports to tell you if your prices are where they need to be in comparison to expenses you are incurring. You need to run reports to show problem areas like theft, loss, waste, profitable areas, etc.In the service industries, reports can show how time is allocated. If time is allocated poorly, money is being lost and as 99% of businesses in the country, I am sure you are trying to make a profit. These reports can help reveal the problem area and help to shift employee duties or activities in a way that will bring profit back or increase the profit of your company quickly and efficiently. This is why account consulting is very important