Tax Myths and Accounting

Accountants can do so many things for businesses, including basic bookkeeping to advanced tax adjustments and reductions. However, businesses have some misconceptions about how accountants actually do their work. Listed here are some of these myths I’ve encountered in my occupation.

1.     Accounting is All About Math

Accounting is based on math, but it is not completely about mathematics. Rather, accountants make use of math as an instrument to calculate the value of assets, liabilities, incomes, expenses and other business details. The pure soul of accounting is in its research and explanation. An accountant crunches up the numbers and analyses it to explain it quickly to a businessowner, a shareholder or a bank.

2.     Accountants Are Only Tax Preparers

Accountants are not tax preparers. Tax preparers are a separate employee who chains a business’ taxes. An accountant audits companies and this is not necessarily a tax audit. Accountants investigate the bookkeeping of companies and point out any inaccuracies in the accounting. They are also capable of detecting fraud.

3.     Accountants Can Instantly Lower Taxes

Again, like in the first myth, an accountant works with mathematics and uses analysis to help lower a business’s taxes. This means that when a business invests in new properties or branches, an accountant knows where to put the property so that it would incur less operating and property taxes thus saving the company money in owning and operating.