When you think of a CPA (Certified Public Accountant), you probably think of a person who helps others with their personal or business tax returns. While you are correct that CPAs do that job, our expertise comes into play in other ways too.
We’re debunking the common myths about CPAs in this article. For example, we don’t sit in dark rooms with green eyeshades (the green visors associated with bankers and accountants in the early 1900s) and count stacks of money or read ledgers. We do more than that, and we’ll prove it while squashing these myths.
Myth: You’re all math majors.
Truth: We’re probably not math majors.
Many people think that CPAs have a bachelor’s degree in math or, at the very least, have a minor in math. The truth, though – CPAs must be able to do basic math (addition, subtraction, multiplication, and division) and do it well. But calculus and differential equations aren’t typically on our transcripts.
Most CPAs have an undergraduate or graduate degree in accounting, which gives us the accounting knowledge needed to tackle industry demands.
Myth: CPAs prepare financial statements.
Truth: We do more than prepare financial statements (and tax returns).
A common misconception is that if a CPA isn’t doing tax returns, then they’re preparing financial statements. Preparing them is just one way CPAs interact with financial statements, though. Another way is as an auditor. An auditor scrutinizes a company’s financial statements for discrepancies.
Additionally, CPAs may help a company prepare its budget. In that case, we look into the future to create a forward-looking financial statement to see how the budget would impact the company’s bottom line. While many think CPAs are always looking at past transactions, this is an example where we focus on future events.
Myth: CPAs are all introverted.
Truth: Both introverts AND extroverts make great CPAs.
People often picture introverted CPAs sitting in a dark room pouring over computer printouts. While there are positions that require this type of effort in isolation, there are areas where an outgoing spirit is definitely needed.
Meeting with clients, either in-person or virtually, presenting financial results to boards of directors and management teams, and networking with small business owners and other professionals – all of these interactions are required for a CPA to serve clients successfully.
Meet Our Team of CPAs at Morgan & Associates
We’d love to talk with you at Morgan & Associates. We have a team of expert accountants ready to assist you – yes, with tax returns and financial statements but with even more. We’re happy to answer any questions and help you feel confident with your bookkeeping, financial statements, and taxes.