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5 Common Myths About Accountants That Should Be Addressed ASAP

The profession of an accountant is surrounded by various myths and misbeliefs. Still, the profession is responsible and widespread. People who are only superficially familiar with the specifics of accounting mostly imagine an accountant as a gloomy person in armlets, tightly clamped within the framework of tax and other instructions. In this article, we have gathered five common myths about accountants that should be addressed ASAP.

1. An accountant should be sought only by recommendation

This is perhaps the most ancient and enduring prejudice. There are a lot of cases when the involvement of relatives, acquaintances, and just people on the recommendation didn’t end with anything good. Indeed, all people are, first of all, just people. And is it possible to hope that in the event of any difficulties, a person will behave as correctly and responsibly as possible just because he or she was recommended for this job?

Also, keep in mind that in choosing an accounting firm, the recommendations of friends and acquaintances will not help much at all. The result of the provision of accounting outsourcing services is very much influenced by the personal factor. Just like when you hire an employee. Therefore, choose those with whom you have established mutual understanding. The recommendations of others will be able only to give you preliminary information about the success and professional competence of a potential partner.

2. Accountants are easy to find

The accountant is a key employee of the enterprise. And your ability to find mutual understanding with them is very important. According to the estimates of recruiters, the cost of bringing a new employee into an organization is on average three salaries of a new employee. This is provided that they pass the probationary period. And if not? 

Then a new search and new costs. In addition, building an effective accounting department takes a lot of effort and takes from six months to two years of hard system-forming work on the efficiency of the accounting department. Even if it only has one or two people. Can you afford it? And most importantly, is it necessary?

3. An accountant must understand the specifics of the business

Some people think that the accountant “should keep abreast.” Answer the question honestly – who are you looking for? A manager, a sales specialist, an administrator, or an accountant? If you need a person with whom you can consult on all decisions made – this is one thing, but if you need a good accountant – it’s completely different! The main function of accounting is to work with documents and data. And to provide them in a timely manner is your concern. The accountant can’t know what you are thinking.

The specifics of accounting are the same for everyone – the Tax Code and the main governing documents. But the specifics of the application of various taxation regimes for an enterprise and accounting operations must be known. But can you determine the level of his competence in this? Therefore, choose an accountant or an accounting firm with the most experience working with businesses in various industries.

4. Accounting outsourcing – for small businesses

The statement that accounting outsourcing is only suitable for those who cannot afford a full-time accountant is not true. Accounting outsourcing can be used by almost any company regardless of its size. This is evidenced by the successful global experience of many companies. 

The problem is that the larger the company and the more diverse business processes it has, the more difficult it is to implement outsourcing in an enterprise from an administrative and managerial point of view. This places increased demands on the special knowledge and skill level of managers, as well as the literacy of other employees.

5. Accounting outsourcing excludes the presence of a full-time accountant

The head of the organization is responsible before the law for the organization of accounting and reporting in the enterprise. But you have the right to arrange them in the way that is most convenient for you and as safe as possible from a position of reliability. Therefore, no one will be able to forbid you to hire an accountant, while concluding an agreement for the provision of accounting services with a third-party company. Even if it is not alone. 

For example, one of the companies provides payroll outsourcing services, the other is accounting outsourcing. Let us remind you once again that any options for redistributing functions and organizing business processes are possible. Just keep in mind that the more structural links you have, the more difficult it can be to manage it all.

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Written by Amelia Grant

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