As a small business owner you’ve invested in the latest accounting software, and it’s working well to save you time and money, but does that mean you no longer need to hire an accountant?
In most cases, no. While accounting software can be an extremely valuable, time and money saving investment, it doesn’t necessarily remove the need for expert guidance from an accountant.
Let’s look at this in closer detail:
What is accounting software?
Helping you to track income, expenditure, send invoices and keep a record of receipts and expenses among others, accounting software also gives you an overview of your tax liabilities. Some popular accounting software available today include QuickBooks, Xero, and Wave.
Giving you a clearer and more accurate picture of your businesses finances, they allow you to see how well your business is doing in real-time.
Why do I still need an accountant if I have accounting software?
Having accounting software can certainly help you improve efficiency and keep your finances on track, but keep in mind that it won’t actually manage your accounts for you or do your bookkeeping. There are many things it can do, such as simplifying your costs and automating invoices, but ultimately, your tax responsibilities remain, and it’s up to you to manage them as best you can. If you’re not experienced in accounting and prefer to save money by outsourcing your requirements in this area, this can be a great solution.
If you’re self-employed, for instance, you’ll either need to organise and file your own end of year company accounts, or hire an accountant to do it for you. And if you’re preparing a self-assessment tax return, accounting apps can only guide you, they can’t prepare and organise your accounts, make sure all the information is correct, and submit your tax returns to HMRC.
What an accountant can do for you that accounting software can’t
There’s no doubt that accounting software can be a wonderfully effective tool, but it can only ever work at its best when complemented by the services of an experienced accountant. An accountant – remote or otherwise – can offer you expert advice that’s tailored towards your specific business and its needs, and can help you minimise overheads, improve your profit margins and even grow your business. Not only that, but an accountant will ensure that you’re always in compliance with tax laws, and will advise you in a timely manner, of any potential tax changes that could impact your business.
Investing in accounting software still has value, and in fact, when paired with the services of an accountant, can be extremely beneficial for businesses of all sizes.