Accounting is the recording of financial business transactions in a systematic way. It encompasses the process of summarizing, analyzing, and reporting these transactions in a comprehensive way. It is one of the most important jobs or tasks of a business. This act of organizing financial data can tell you all sorts of things about your business, or if you really have one or not.
The act of completing these tasks can be performed by an accountant or bookkeeper, depending on what state you are standing in. The separation of these two job titles is something that burns me up. See I went to college and obtained an ACCOUNTING degree not a BOOKKEEPING degree. I worked in public accounting firms as an ACCOUNTANT not a BOOKKEEPER. Now let me be clear before you get your pants all in a bunch; I am not bashing or down talking those professionals who classify themselves as bookkeepers. Quite the opposite actually.
It is actually a term I want to do away with. See some people classify a bookkeeper as the person who does all the data entry and an accountant as the person who does all the analysis. But by my education and training, you are doing analysis while you are bookkeeping, so by definition doesn’t that make you an accountant? Now I didn’t say CERTIFIED – that’s a clear distinction that refers to someone who lost six months of their life to studying for and passing a rigorous exam. I am simply saying, if you perform the analysis work, why can’t you call yourself an accountant. Because see, in my book, if you are doing just data entry and not doing any analysis than you are doing a disservice to your clients.
So let’s get back to the subject of this article because I am seriously digressing here…..
- Do you agree that an accountant or bookkeeper is needed in your business to help you keep your financial ducks in a row?
- Do you agree that an accountant or bookkeeper is necessary to the success and growth of your business?
- Do you agree that anyone performing these tasks correctly, accurately and efficiently has had some sort of skill or training to do so?
- Do you agree that this skill or training makes them an expert in that arena?
Well if you answered yes to one or more of those questions, than why on earth are you devaluing their time, work and effort to the rate of barely above minimum wage??? Yes I said it and I am calling you out on the table.
I have been in this industry for over 17 years and it wasn’t until I started my company that I realized that this stigma existed and it has to stop! If I can work for a public company in a finance department and they call me an accountant why can’t you? If I can work at a CPA firm and they not only call me an accountant but also charge clients $75 to $115 an hour for my services, why can’t you?
What’s good for the goose is good for the gander right?
Now some people may feel they are truly just data entry technicians and that’s ok. But for those who give more and provide more value with their services should recognized and compensated for it.
This nomenclature has trickled into my very own business structure, so I too am guilty. But keep an eye on us…I see changes in our future.
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