5 Accounting Myths That Need to Be Busted

Keeping up with the books is an important part of running any business, but not everything you hear about accounting is true! Remembering the truth behind the most common accounting myths will help you keep your business running like a well-oiled machine.

Myth #1: Accounting Only Really Matters at Tax Time

Getting organized at tax time is a huge part of keeping your business in compliance, avoiding fines and minimizing your tax burden, but ignoring proper bookkeeping for the rest of the year is a recipe for disaster.

The real value of instilling a solid accounting framework within your organization is the ability to seize opportunities and mitigate risk, not just to write a check to Uncle Sam. Accounting data reveals the overall health of your business, and periodic reporting, just like a checkup, can show you problem areas that need to be addressed and where resources are potentially underutilized.

Cash flow is the lifeblood of every business, but you can’t keep your finger on the pulse if you only “do the books” just before tax season.

Myth #2: My Business is Too Small to Need Accounting Software

Don’t let the learning curve deter you from reaping the benefits of modern accounting software. If you’re still using manual accounting methods because it’s what you’ve always done and it “works just fine,” you’re missing out on a valuable boost in productivity.

Digital solutions can be catered specifically to your needs to help you be more efficient and free up time to run your business.

Myth #3: An Outsourced Accounting Solution Won’t Understand the Ins and Outs of My Business

Nobody understands what makes your business tick like you do, but that doesn’t mean your enterprise won’t benefit from a little outside guidance. Accounting services have developed comprehensive systems for collaborating with business owners across a wide variety of industries.

Hiring an accounting professional will likely lead to more control over your business, not less. By standardizing processes and establishing guidelines you’ll be able to enjoy the predictive power of real-time data regarding working capital and other vital metrics.

Myth #4: My Accounting Software Does Everything

There’s no doubt that accounting software solutions are extraordinarily powerful. But what matters most with accounting data is what you do with the information!

Without a working knowledge of how your company operates financially, all those snazzy reports are rendered useless.

A business owner wears many hats, and even if you hire an outside number cruncher, accounting still needs to be one of them.

Myth #5: Accounting Services Are Too Expensive

Accounting services aren’t just for massive corporations with hefty budgets. Not when the benefits of these services essentially pay for themselves.

When taking into consideration increased cash flow, elevated profits and enhanced financial strategies, the cost of getting help with your accounting could wind up being nothing at all!

Outsourcing your bookkeeping to R&D can give your business the accounting experience it needs without the expensive overhead and administrative headaches. Contact us today to see how we can help you achieve your goals for 2017.