top 10 accounting myths by mindy viteri - articlecity.com - are dishes for a restaurant depreciable

A lot of times I'm in a restaurant, a shop or an outing and someone in my family or group of friends says, you're an accountant, how much is that?
I want to figure it out in my head.
I am not a mathematician. I am an accountant. I want you all to come in with a little secret.
Please don't let me calculate anything if my calculator is not nearby.
I will also let you know more secrets.
Read below to find the top ten accounting myths I have sorted out.
#1 accounting myth-
Accounting is about mathematics.
This cannot be deeper than the facts.
Yes, you use math, but math is also used by engineers, salesmen, marketers, lawn administrators, hair stylists, etc.
If you want to be paid, you must calculate the amount you owe, the change in cash payment, the percentage of commission, etc.
Accounting also uses mathematics.
Accounting accounts for assets, liabilities, income, expenses, etc;
The core of real accounting, however, is research and storytelling.
Do you like puzzles?
In accounting, you look for the right holes when you browse through these numbers.
You must tell the business owner, shareholder, bank or manager what these numbers mean with these numbers;
How they use them;
And what will happen in the future.
It's not algebra, it's analysis.
#2 accounting myth-
Accounting = tax officer or IRS agent.
Oh, wrong.
Understand that when you enter a major tax franchise or chain business, it is likely that your tax is prepared by a trained tax preparation person rather than an accountant.
The real definition of accounting is someone with an accounting degree.
Yes, when I was working in a public accounting firm, I prepared taxes after graduating from college, but the only reason I was asked to do so was because the partner I worked for had several tax clients.
Mainly audit companies.
This does not mean tax audits.
That means I went in and looked at their books and the scene.
Check accuracy.
After that, we will report to them the areas that need improvement and look good.
This is a very short summary of the company's audit.
Many accountants work for private companies that compile finance for managers and owners, some accountants do fraud investigations where they help companies discover or investigate fraud, and others simply consult on various topics.
Be careful when someone says they are accountants.
I hear the bookkeeper and the Secretary keep saying that they don't know the difference between the diary entry and the coffee pot.
Do not destroy the secretary and the bookkeeper.
I respect all of them and I am very grateful for their work because there are a lot of people on my team working but they are not accountants.
I will not tell my clients that they are.
This is not a fair description of who they are and their qualifications.
#3 accounting myth-
Accounting for men only.
In every company I have been employed or worked in, the ratio of women to men is either 50% or higher, in favor of women.
In fact, most are dominated by women.
Yes, I 've seen most men in executive positions, but women are also growing rapidly in this area.
As many companies have seen, women can balance family and work better than you, and they respect women's abilities and qualifications in these areas.
Now, guys, you guys haven't been pushed out.
This is a great place for men and women to show their potential.
Don't expect your gender to determine your position in the accounting world.
#4 accounting myth-
Accountants are introverted or boring and do not like to work with clients.
Even tax accounting must be the people. person.
We must cooperate with customers, employees, suppliers, customers, etc.
Because of the interaction between people, I like this field.
I like to chat with [and I'm sure my husband will agree with it] and I like to teach as well.
Turn accounting into a language that my client can understand, from a funeral home to a hair stylist.
I can teach them how their numbers tell them the stories they need to hear and their future.
My colleagues and friends at the University are great and we are all students in accounting.
We went out for drinks, went to the club to dance, went swimming and skiing by the lake, worked out at the local gym and so on.
For us, life is not boring at all. as an enterprise owner and accountant, I can assure you that my life has nothing but boredom.
I have two children, a husband (business partner), staff, family, friends, clubs and organization meetings, and the list continues.
This week is an extra benefit if I have time to do housework.
#5 accounting myth-
Small businesses don't need accounting or can wait until it gets too much and I can't handle it myself.
Well, that means that as a small business owner, you're going to say that you don't need a budget, you don't need to predict finance, you don't need to know the trends in your business, and you don't need to know the latest trends, the biggest tax advantage
I have a client who is small-
Earn only about 20 K of male service business a year.
Every business needs an accountant to supervise them.
Now, this person or company needs to be trustworthy and capable, but you also need them.
According to whether the bank had cash at that time, enterprises could not and should not operate.
At the end of the year, how do you know if you are reporting losses or income to the IRS?
You need to report as much loss as you can, pay as little tax as you can, or you're just cheating yourself.
If you go in with a box or, in some cases, a garbage bag full of receipts, a lot of tax companies charge you for an arm and a leg and say, here.
Please pay taxes for me.
They have to charge you the time they have allocated to go through these receipts and most likely they won't take the time to make sure they put every penny in so you pay as little tax as possible.
Your accountant will track your finances throughout the year and everything should be clean and tidy.
In addition, your accountant should be able to give you monthly financial reports, tell you where improvements can be made in a certain area, prepare reports for possible loans and help you make financial decisions, help you make the most of your recent tax advantages and tell you if, according to history, your business will move towards lower or higher revenue in certain months.
This is all the information needed and once my clients get into my service they will be surprised to run their business without my service.
#6 accounting myth-
An accountant would cost me an arm and a leg.
Well, if you go to high-
But when looking for a lawyer, it's not cheap if you keep Robert Shapiro's service.
You must find the right company or individual for you.
View references, qualifications, and services.
Make sure the price matches the industry standards in your area and make sure they make you happy with working with them.
You should be number one for them and you should be able to find a qualified person or company to work together.
My company is known for its low interest rates as this is the way I designed it.
I want to create a company where I can cater to small and start-ups
The Up business is also affordable for them.
I always price my service below the cost of hiring a full time employee
Time staff, sometimes I have gone a lot, a lot less;
Depending on the customer, their needs and their financial position.
Call me or email and we can talk and see if we can help you or at least point you in the right direction.
#7 accounting myth-
I pay for my own business.
No big deal. WRONG.
If you own or run a business, it's a business, not your spouse.
When you pay a fee from your own pocket, you need to pay attention.
This is the money that can refund your tax. free.
For example, I recently met a client.
She owns a beauty salon.
She does not have a commercial bank account and all expenses are paid through her own account.
Now, she counts her income.
Her husband is a man.
Time staff for another company.
First of all, there is no way to judge whether she is really profitable.
Second, she got a salary.
Her salary is subject to tax.
If her business breaks even, the tax she should pay will double.
She never reimbursed her expenses for going out. of-
It should be pocket money for taxes. FREE.
The fee she should be able to pay from her pocket at least is refunded [tax-
Free] before taking the taxable salary.
As her accountant, I suggest that she open a commercial bank account.
At this point, she will deposit her income into this account and pay the bill from here.
If there is not enough cash to pay the bill, she will pay it out of her own pocket, but she will definitely tell us when she will pay.
We recorded this as her tax payment.
Free, she will receive the money when the company's cash flow is allowed.
#8 accounting myth-
I don't have time and I don't need to set goals for myself and the company.
Every company I know, read or participate in uses the target-
As a complex part of the business.
The life we know is like this. spinning speed.
No matter what the industry is, the changing times can cause confusion, and in many cases, if the company doesn't stay up late, the company will go out of business --to-
Date of trend, technology and consumer information.
Sit down and write 10 goals for yourself and the company.
Once completed, prioritize these targets from highest to lowest.
Put them in a place that keeps reminding you of your goals.
Sit down every month and review these goals.
Write down what you have done to get close to everyone if you have reached any of them.
When you reach your goals, cross them off the list.
Don't remove them.
This gives you a sense of accomplishment, and it gives you a reward for your efforts.
#9 accounting myth-
I really don't need an accounting report to understand the status of my business.
It doesn't mean that your business is doing well if you are busy.
You will need to report to tell you if your price is where it needs to be compared to the fees you incur.
You will need to run reports to show issues such as theft, loss, waste, profitable areas, etc.
After you run these reports, you need to know how to use them.
If you run a report that shows that you have a major area of waste in the manufacturing process, then you need to come up with a solution to the problem, or find a way to get revenue from the scrap, find ways to reuse waste, or better reduce the process of waste.
In the service industry, reports can show how time is allocated.
If the time is not properly allocated, the funds will be lost. as 99% of the enterprises in the country, I believe you are trying to make money.
These reports can help to shed light on problem areas and help to transfer employee duties or activities in a way that can quickly and effectively restore profits or increase the company's profits.
#10 accounting myth-
I can handle the accounting myself.
I have QuickBooks. Ha!
This made me laugh.
QuickBooks is a great program and the one I use every day, but it doesn't need accounting.
In fact, most open QuickBooks will only become overwhelmed and confused.
Having this project is very good and can be an awesome tool, but your accountant needs to help you set it up, educate you on how to use it, come in on a regular basis, make sure everything is OK, run the report, and fix the problem area.
You may be great in business, but unless you know how to operate the accounting aspects of your business perfectly, you really should do yourself a favor, at least with advice from accountants in the process
It's a great project, as I said, but if you don't understand accounting, trying to figure out how to book numbers can be confusing and cause even greater confusion.
If you do not enter your big asset correctly and depreciate it, you will miss the cost that will give you a tax advantage.
If you do not book the fee in the right way, you may incur more deductions than you should, which may cause problems with the IRS.
If you don't report all the income you should report, you know what the IRS will feel about it.
If you don't book a discount or refund correctly, you miss another tax cut.
Have you seen trends in the problem area?
You really need to be educated in accounting before you try to dive to use your accounting program properly.
All of these tips should lead you to the conclusion that you need an accountant and I will be very honest to say that I am writing this article not only to help you but also to improve my company.
With that in mind, I will tell you that we are available anywhere on the continental United States.
We work by email, in person and by mail.
We strive to create a personalized service package for our customers that is not only cheap but we don't lock our customers in for a long timeterm contracts.
Our services maintain our business and we provide the best possible services.
Contact us and we will be happy to provide you with free consultation.
Carter Services Plus offers accounting Services, bookkeeping Services, payroll Services, training, marketing consulting, tax preparation Services, and consulting in a variety of other financial Services.
Feel free to call us and set up a free consultation to review your current financial situation or find out if we are the right one for you.