Understanding your financial situation and keeping an accurate record of your accounts is not everyone’s cup of tea. However, with the ability to understand your needs, study your financial records and identify trends, a professional accountant can help you gain a strong-hold over your finances.

The methodical approach adopted by professionals not only protects a client from financial risk but also offers a strategy to secure their future financial goals. Unfortunately, the prevalence of myths and misconceptions about accounting services prevent customers from seeking the required help.

As the most trusted advisors in the field, Harris CPA & Associates wants to help you steer clear of these myths and false facts. We have done this, by debunking three of the most widely believed myths about accounting.

Myth 1: All accountants are expensive.

Unfortunately, exorbitant fees charged by some accountants have led to the misconception that all accountants are unconcerned about the budget of the customer. The fees charged by accountants are usually a function of the complexity the work involved in streamlining a client’s accounts. It is in your best interest to choose a professional who takes cognizance of your budget and does their level best to cater to your needs within your budgetary constraints.

As the professional delves deeper into your accounts and financial statements, they would be in a better position to provide concrete information on whether costs would increase.

Myth 2: Preparing accounting information takes a long time.

If you have few or no records, and the filing system for invoices is in disarray, then the accountant will need to labour over preparing accounting information.

If the information and data you have is in order, a professional accountant will go about creating a complete accounting picture methodically and quickly.

They will focus on your accounting records, go through everything you have and make notes of what could be missing and ask you simple questions to get the information needed.

Most of this comes from your bank statements to start with. If your bank statement is full or seems full, that is where it all starts. That is the only ‘straightforward’ thinking that accountants do.

After gleaning the required information, the professional creates an accounting report, checks it reasonableness and discusses the report with you. Only after you endorse the report does the professional consider the task complete. Experts save time in preparing accounting information, and therefore costs are less expensive than you would imagine.

Myth 3: An unrecorded transaction cannot be re-entered.

One of the most common mistakes in the world of accounting is not recording a transaction. Many clients believe this myth because they are not aware of how to record that transaction. A client should care about unrecorded transactions because the Canada Revenue Agency (CRA) will probe why the accounts do not balance or why the bank is not correct, and they will need this anomaly to be fixed.

The perpetuating myth in the industry is that re-entering an unrecorded transaction is not only difficult but also time-consuming and hard to make sense. A simple fix is to ensure all accounting transactions are simply ‘entered’ in the records. Even if the record is entered into an incorrect account, it will balance the accounts, and that is the objective. Professionals are adept at bookkeeping and rectifying such issues quickly and as per they easily accomplish budget.

If you’re looking to steer clear of myths like these and several others, reach out to Harris CPA & Associates. Our trusted advisors provide accounting and consulting services in Peterborough, ON. We help you to look at your needs not only through the lens of an accountant but also that of a business financial advisor. We provide insights about year-end statements or tax requirements and arrive at accurate, up-to-date financial information which is essential to identifying trends, insights and financial comparison to industry standards.

For a complete list of our services, please click here. If you have questions or need guidance on your financial needs related to business accounting, tax preparation, income tax, and other services, please contact us by clicking here.

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