Bookkeeping Misconceptions

As an accounting practitioner working mostly with small, high tech companies who claim tax incentives for research & development, I know a little bit about rocket scientists. While many of my clients are incredibly intelligent, they are just as susceptible to misinformation as the rest of us. The internet is incredibly powerful and enormously useful for sharing information. Too often though, we have to sort through a great deal of misinformation to get to something accurate and reliable. I believe this is the result of sel-interest. Much of the content has a commercial origin. So a little skepticism is very handy, if we want to get to the truth. In this video I explore an article published by FOX BUSINESS NEWS that explains why small businesses should use commercial accounting software. It isn’t that small businesses shouldn’t use accounting software – but that they need to manage their expectations. I have no idea what the motivation (i.e. ‘self interest’) behind this article was. However I think it’s important to point out some of the misconceptions that were introduced. Besides I love to take on FOX NEWS since they are one my go to sources for ‘fake news’.

Cash Basis vs Accrual Basis

The cash basis may be appropriate for some small businesses. Of course you can’t actually file your income tax on a cash basis. It is very common for small businesses with simple needs to rely on banking records (bank accounts, credit cards, etc.) and let their accountant adjust to accrual at year end. In this video we explore some of the issues and the theory. However actually doing it is actually probably necessary if you want to how to do it yourself. At the SMALL BUSINESS ANALYSTS SOCIETY of CANADA, we believe that learning how to keep the books for a small business is best done under the supervision of a CPA or other professional accountant.

Artifical Intelligence - Why it doesn’t work for bookkeeping

Software developers would have us believe that everything can be automated. However artificial intelligence rests on a foundation of actual intelligence. In other words, you have to understand a process very well before you can automate it effectively.

Paperwork Study

A study by STATISTICS CANADA that looked at the compliance burden on Canadian business.

Signup -
Free Consultation

Copyright (c) 2022 All rights reserved The SMALL BUSINESS ANALYSTS SOCIETY of CANADA 

Share this:

Like this:

Like Loading...
%d bloggers like this: