Every year, more and more businesses are hiring accounting services as owners want to avoid issues with the authorities and enjoy peace of mind. But some people, like owners of startups and sole traders, think that working with a Herdon accounting firm is not important. So, they prefer to use DIY bookkeeping software and manage their own finances. Although this can work for some businesses, it can maybe risky for most. This article explores and debunks the common misconceptions about accounting services, including the following:
Accounting Services are Quite Expensive
A lot of business owners hesitate to hire an accountant because of the price tag. In general, financial services are not cheap. However, as the number of providers is increasing, the competition has led to more competitive pricing. Also, it forces firms to offer more services than before, ensuring their clients get their money’s worth.
Accountants Must Manage Your Money
Usually, people mistake accountants for financial managers. However, an accountant is responsible for analyzing business figures such as expenses, cash flow, and profit. But they do not make decisions for you nor control when and where your money moves. But they can provide advice on this subject. As a business owner, you have to make the call. Also, generally, an accountant cannot access your business bank account. Their job is to make sure your workers get paid correctly and promptly. These days, accounting firms also offer payroll services, which means that you can hand over the payroll-related task when necessary.
Accounting Services are Only for Big Corporations
If you need to handle bookkeeping and taxes on your own, you can make your life easier when you hire an accountant to do it for you. Keep in mind that even minor errors or misunderstandings in your books or taxes can lead to hefty fines. Also, you may miss out on possible returns and reliefs you might be able to claim. By hiring an accountant, you save both money and time.
Accounting is Only About Numbers
Although this could be true, proper accounting requires more than just basic math skills. Accounting is also analyzing and recording business transactions, as well as giving advice to clients on different tax laws and liabilities. Overall, accounting is more about analytical thinking and problem-solving. An accountant is trained to detect possible issues and opportunities. Instead of balancing your books, an accountant will help you increase your bottom line.