Unbelievable Misconceptions about Bookkeeping & Accounting

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According to observation and experience there exists nothing with zero myths and misconceptions. Be it your health, any technology or simply a profitable initiative such as bookkeeping and accounting, everything has a long list of misconceptions. These misconceptions arise from poor experiences which might be triggered by some other factors or rumors which gradually grow strong and ultimately become a fact or news. Bookkeeping and accounting is an idea that has proven itself helpful for all businesses. No successful business is complete without a good accountant like Nova Accountants Carrum Downs. As long as your money is concerned bookkeeping and accounting is the most helpful hand you can ever get.

Let’s bring all the misconceptions under the spotlight and see what they say.

1: Where there is accounting there is mathematics: Throwback to the times when you were in your accounting class with calculator n hand and struggling with your digits. Fast forward to the current times. Is accounting all about digits? Well to be very precise, not really. An accountant is not to juggle the decimal points and worry about profit and loss. There is much more to it. They have to keep track of all the legal policies and keep the business owner aware of the declines and climbs of business. Based on the current statistics, they have to come up with the most innovative advice for the company. Somehow, the company depends upon them.

2: Small businesses don’t need to focus on bookkeeping: Says who? Businesses which are still in the age of infancy have an urgent need for bookkeeping and accounting. Many businessmen think that they have so much to look at that they can’t focus on something as negligible as bookkeeping. Surprisingly, if you don’t keep a check on your expenses how would you move ahead? Bookkeeping and accounting keep an updated check on how much money went where. At the end of the day, you are not dubious about your precious investment. For growing up you need a budget, right?

3: Accounting and bookkeeping have no difference: Imagine a football team. All players play at different spots. One is a midfielder while other is a defender. Similarly, bookkeepers and accountants belong to one team but their positions in the company slightly differ. Accounts worry about the tax issues and the audit of the company. Whereas bookkeepers keep a check on the numbers and analyze them. They advise the company strategies to move ahead with the figures they are currently standing at.

4: Bookkeeping is not important: There is a long list of businessmen who have underestimated the power of bookkeeping and accounting. Where are they now? Overcoming the loss. Past shows us that all the businesses who never thought bookkeeping would be necessary ended up drowning themselves in piles and piles of paperwork at the time of need. They could not expand themselves in any way possible. Communicating with partners became difficult and coming up with new profitable strategies also became impossible.

5: Accounting and bookkeeping are required in annual tax returning season: Even if we believe this notion for one split second how do you think the cash flows and money transactions and financial reports of all year long are going to be prepared in such a short time and that too when something as important as tax returning is at stake. Isn’t it better to keep the record in making from day one so that everything is compiled?

Are all these misconceptions familiar to you? If yes, you need to start bothering about your business’s well-being. Take a wise decision now and enjoy the smoothness of your business
from now on!

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