As you seek the right bookkeeping services in Irvine California (Ca) for your business, it is important to understand that some misconceptions are obscuring you from the truth. Bookkeeping is one of those jobs that people undervalue. In this post, we will run you through some of the most common misconceptions about bookkeeping.

Booking is just simple data entry

Although bookkeeping involves a lot of manual data entry, there is more to bookkeeping than just data entry. For example, a bookkeeper has to compile reports of financial activity and industry trends to show business owners and managers. A bookkeeper also has to check the spending records of the company for inefficient financial activity. Bookkeepers devise financial strategies to help their clients optimize cash flow. They also contact appropriate agencies or clients regarding payments.

All bookkeepers are good at math

While bookkeepers can do a few mathematical functions such as arithmetic in their heads, you don’t have to be a mathematical genius to become a bookkeeper. This is especially true with all the automated accounting and bookkeeping applications that can help you. Most of the skills that distinguish good bookkeepers from bad ones have nothing to do with numbers. Things like maintaining strong client relationships are what makes good bookkeepers and not numbers.

You need a degree in accounting to become a bookkeeper

A lot of bookkeepers do not have accounting degrees. A lot of bookkeepers out there do not have a college or university degree. As long as they take good courses in bookkeeping and find the right software, they can offer quality bookkeeping services and earn a living.

Bookkeepers are as good as reviewers

Some managers and business owners think they may keep track of their financial balances and hire a professional bookkeeper close to deadlines for taxes so as to review the work done throughout the year. This is one of the most common myths that keep bookkeepers from being respected.

From the moment expenses are first jotted down, failing to realize their impact or entering it in the wrong place can lead to errors that can cost you a lot of money in the future. Unless business owners have some know-how about money matters, bookkeepers should do account balancing from the first day.

AI will replace bookkeepers

As we have already said, most of the bookkeeping work has nothing to do with data entry or numbers. An effective and professional bookkeeper has the nuance and skills required to make clients feel confident and secure about handing their money matters and that is something a machine can never do.

Bookkeepers are low-level accountants

Most people underrate bookkeeping services CA and think that bookkeepers are low-level accountants. But the truth is that accountants will be completely lost without the help of bookkeepers. Bookkeepers are responsible for reproducing workable raw data regarding the spending of a company. In other words, they produce useful reports that act as primary sources for the financial activity of a company.