Busted! Don’t Believe These Accounting Myths!
Whether you are 100% up-to-date or a bit (or a lot) behind in financial understanding, you can not always blame yourself for lacking the expertise and time to do your monthly accounting. Especially when you have the choice of hiring an accountant that takes care of all your financial issues.
Hiring an accountant can save you a lot of time and ensure that your records are accurate. They help you remain stress-free and in compliance with the laws.
To help you steer clear of these misconceptions, Ocean Breeze CPA. has debunked some of the most widely believed myths about accounting.
Myth 1: Bookkeeping is accounting
Bookkeeping is the process of recording revenues and expenses in a business. While bookkeeping is a critical element of accounting for any business, accounting goes beyond just the “keeping of books”. Accounting involves analyzing past and present decisions and how to categorize revenues and expenses correctly to ensure that you legally minimize tax payments while ensuring you are in “tax compliance”. It also provides the basis for quality forecasting of future events, such as the sale or replacement of capital assets and the effect on your income in the future.
Myth 2: You only need to worry about accounting at income tax time
Both bookkeeping and accounting should be subject to ongoing reviews to ensure adequate cash flows and compliance with other taxes as they may fall due (i.e., payroll taxes, GST, PST, etc.).
Myth 3: Accounting is a significant expense
Many times a business client has come into our offices requesting some help now that their “bookkeeper-tax-filer” has retired. In some cases, the choices made by these bookkeepers (5, 10 or more years ago) have very negative implications for either correctness of filings (and by extension, interest and penalties) or loss of current income. If you have a business that’s more than a minor hobby, come and talk to a qualified accountant!
If you’re looking to steer clear of these myths, reach out to Ocean Breeze CPA. as the leading chartered professional accountants in Sechelt, Sunshine Coast.
We are a team of accounting, bookkeeping, and tax preparation experts and are here to help you in each aspect of your financial journey. We offer accounting, bookkeeping, payroll, tax preparation, tax filing, tax returns, and business tax services across Sechelt and the surrounding areas.
For a complete list of our services, please click here. If you have any questions about Ocean Breeze CPA., we’d love to hear from you. For more information, please call us at (604) 885-0366 or email us at firstname.lastname@example.org.