For lots of small business owners, the idea of what actually happens in the field of accounting is kind of murky — they have a vague idea that accountants are good at numbers, and that they can balance your books. And while there’s some truth in those statements, they’re definitely not the whole story. So we’ve decided to clear things up by exposing some of the most common misconceptions about accounting, such as:
1. The field of accounting is full of boring people who love nothing better than a spreadsheet.
OK, so accounting has never really taken on the panache that some other careers have, but there are accountants of all kinds, from the more traditional end of the spectrum to the more relaxed and modern, just like in any other field. And with the rapid growth of cloud accounting, there’s no need to use spreadsheets anymore!
2. Only bigger businesses need accounting.
Any size business has to manage money, create budgets, and pay taxes, and an accountant can help with all of that. In fact, it’s better to bring in an accountant early in your business, since they can help you get a solid business growth plan in place.
3. Accounting is really expensive.
Lots of smaller businesses shy away from getting professional accounting help because it seems like it might not be worth the money. But there are all kinds of different levels of service, and unless you’re doing something super complicated, most accountants are really reasonably priced. What’s more, you’ll probably save money over the long term working with an accountant because they’ll be able to keep costs low, avoid fees for noncompliance with laws and regulations, and keep you from overpaying your tax.
4. Accountants mainly just balance your books.
Sure, accountants can balance your books. But they can also help keep you compliant with business regulations, sort out matters with the HMRC at tax time, help you create a solid business plan, and even help you network with other people in your industry.
5. Accountants aren’t really up to date with internet entrepreneurship, so they won’t really get the needs of my business.
This varies from accountant to accountant, but lots of accountants are very up to date with new ways of doing business. Thousands of UK accountants are using cloud software like Clear Books and embracing new and better ways of working using the internet.
