| Hiring an accountant is necessary | | | | principles and rules to be followed. Otherwise, we |
| | | | | would not have to go to college to study accounting. |
| Every business needs an accountant. Whether it is big | | | | Second, you need to know what the reports mean. |
| or small business, it needs to have an accountant. Any | | | | There is a difference between the statements. Each |
| type of industry needs accountant. There is no | | | | one gives different view of the business. One time, I |
| business that is too small for having accountant. May | | | | heard someone was advertising saying I will lower |
| be the accountant does not have to be on site, but | | | | your expenses on your balance sheet. Expenses do |
| you still need to have one. That's why there are | | | | not go on the balance sheet, THEY ARE INCOME |
| accounting services offices to do the accounting for | | | | STATEMENT. |
| small businesses that can not afford hiring accountant | | | | |
| on site. | | | | One of the misunderstandings about accounting is that |
| | | | | it is money coming in and money going out. It is not that |
| There are some misunderstanding and misconception | | | | simple, and we went to college to learn more than that. |
| about accounting and accountants. Most people think | | | | Revenue does not always mean money coming in. |
| of accounting as taxes. When they hear the word | | | | Expenses do not always mean money going out. Not |
| accountant, they think of 4/15. They mix between | | | | every time you bring money is considered income. You |
| accounting and tax preparing. Accounting deals with | | | | can bring money in by borrowing from the bank which |
| reporting and evaluating the financial information. The | | | | is considered liabilities not revenue. On the other hand, |
| accountant takes the financial information to interpret it | | | | you can sell products and create revenue on credit. |
| to measure the organization's financial situation. | | | | |
| | | | | The accountant can look at the financial statement |
| Some business owners do not realize that they need | | | | and diagnose the business problem. It is like you can |
| to have an accountant till it is too late. Many business | | | | measure your blood pressure, but you still need to go |
| owners think that they can purchase QuickBooks and | | | | to the doctor to give you the medication. Another |
| do it themselves. QuickBooks is great accounting | | | | example, you can read your blood work test, but the |
| software, and it is very user friendly. You can have | | | | doctor can interpret the result and tell you what is |
| QuickBooks, but you still need to have accounting | | | | really wrong. |
| knowledge to be able to use it correctly. Any | | | | |
| computer system will not create something from | | | | In conclusion, accounting is not easy profession. If it is |
| nothing. Information has to be put correctly to have | | | | that easy, accountants would not have to go to |
| correct information coming out. Like using a calculator, | | | | college for four years and then get master degree. On |
| if you punch in the wrong numbers, your total will be | | | | top of that, there is the CPA license which is not just |
| wrong. First, you need to know how to report the | | | | to prepare taxes; it is actually more than that. If you |
| transactions. Some people heard about debit and | | | | own a business, you need to hire an accountant. |
| credit, but accounting is not just that. There are | | | | |