Busted! Don’t Believe These Myths About Bookkeepers
The role of a bookkeeper revolves around taking the pulse of a business, the preparation of annual financial reports and tax returns. Unfortunately, over time, the role that different financial professionals play in our daily lives has blurred some lines and has led to the creation of misinformation and myths.
To help you steer clear of these misconceptions and distinguish between what is true and what isn’t, The Business Butlers have debunked some of the most widely believed myths about bookkeepers.
Myth 1: Financial professionals like Bookkeepers, Tax Preparers, Accountants, and CPAs all do the same thing
Customers often group Bookkeepers, Tax Preparers, Accountants, and CPAs together. However, each professional is different. Bookkeepers prepare the financial statements for Tax Preparers. Bookkeepers do not interpret the Tax Law. Instead, they provide accurate, up-to-date financial information about a business.
Accountants are responsible for classifying, analyzing, interpreting, reporting, and summarizing this financial data.
A tax preparer is a licensed professional who prepares, calculates, and files income tax returns on behalf of individuals and businesses.
A CPA has to obtain a proper degree, pass a complicated exam, obtain professional experience, and face regulation by a state board.
Myth 2: All financial professionals are busy between January 1 and April 15
Customers assume during the period of January 1 to April 15, all financial professionals are busy with tax preparation. Customers do not differentiate or know the difference between the roles of a Bookkeeper, Tax Preparer, CPA and Accountant.
We tell potential customers who believe Bookkeepers are busy from January 1 to April 15, we are only busy cleaning up a business’ books for the previous year, or closing out the previous year’s books, or preparing a business’ books for their tax professional.
Myth 3: Bookkeepers are Auditors
Bookkeepers deal with the details of the day-to-day activity. They review the transactions that are synced to your accounting software, like QuickBooks. They are the eyes and brains on where to classify transactions plus catch any errors. Also, reconciling monthly bank and credit card alerts for any errors or fraudulent activity. Tracking cash flow and monthly financial reporting and helps businesses and other organizations keep their finances in order. Therefore they do not play the role of Auditors.
If you’re looking to steer clear of myths like these, reach out to The Business Butlers. We’re a team of highly knowledgeable small business bookkeepers in Bend and Central Oregon.
We provide Accounting, Bookkeeping, Payroll, Administrative Support Services to small business owners who are often wearing more hats than they can handle. We can take the business owner from start-up to training their part-time or full-time admin when they are ready to create a smooth transition for a growing business.