Frank Dinucci Debunks Five Small Business Accounting Myths

Former Ivy-League accounting professor Frank Dinucci has been traveling across the country educating small business owners and first-time entrepreneurs about the benefits and ways of error-free accounting.

He also emphasizes the advantages of modern cloud-based accounting with using certain software, which can be used by entrepreneurs for easily keeping their accounts in order. For a fraction of the price of hiring a real accountant, it can be used to generate accounts and keep records. 

It's the freedom and money saved that drives them to keep their own finances; it's very rewarding when they see what a difference it does for themselves and their business.
Frank Dinucci
But not many entrepreneurs are aware of the software available to them at a fraction of the cost of hiring a full-time accountant. And to go along with the non-awareness of the software, there are numerous myths that Frank Dinucci stresses can deter a small business owner from keeping their own books. 

Myth #1: Accounting is about math.

“This could not be further from the truth,” Dinucci proclaims. “Lots of professions use math for their respective field. Engineers, marketing positions, and many more jobs use math. But with accounting, they use the numbers to make reports, provide a detailed analysis of the company.”

Myth #2: Small business owners don’t need to learn accounting functions.

The workshops Frank Dinucci conducts across the county stresses that as a small business owner, you can run your own finances and books.

Modern day technology makes doing your own accounting much easier. Inputting numbers can be done throughout the day and be accessed from any location, even outside of the business. This makes it easier for an owner to keep track themselves and be able to generate reports on the spot.

And when it comes to having your finances closely tracked, it’s a must and important that your financials are kept for the entire year so that when tax season comes along, owners are prepared and it does not become a stressful situation.

Myth #3: Accounting is only needed during tax season

Accounting of your business is a critical component for businesses when tax time rolls around. But the truth is, you need accounting services year round. Having an accurate picture of your business at any given time can help you better estimate your costs and understand your revenue. Keeping the books up-to-date will come in handy when it comes to filing your taxes, as well as growth and profitability for the small business.

Myth #4: Small business owners do not need to keep their personal and business banking separate

This is extremely important. The Internal Revenue Service may limit some of your expenses, and more if your personal banking and business banking fall into the same account with the same bank. Also, this makes the business owner open to an audit by the IRS if your personal account and business banking account are not separate and able to be detailed. Business owners tend to make the mistake of writing personal expenses as business expenses; this would flag attention from the IRS.

Frank Dinucci notes this is a big no-no and stresses owners to keep their personal and business banking separate.

Myth #5: The savings of doing your own books is not worth the time

Frank Dinucci stresses this is not true. The amount of money an owner will save by learning and doing their own accounting will be greater than employing just one full-time accountant. While it does take time to learn the system, with new software and professors like Dinucci willing to help, learning on your own is worth the money saved in the long run.

While there are many more myths in the world of small business accounting and keeping your own books, Frank Dinucci has seen owners learn and become experts in keeping their finances and not outsourcing the work.

“It’s the freedom and money saved that drives them to keep their own finances; it’s very rewarding when they see what a difference it does for themselves and their business.”

Source: Web Presence LLC


Categories: Financial Accounting, Accounting, Financial News

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