It’s no secret that computers play a huge role in businesses, as they are becoming widely popular both at workplaces and in homes. They can be used to manage sales and stocks and even handle finances and staff.
Accounting is the detailed recording of a business’s financial transactions. It is used in many forms, from accounting for small to large-scale companies.
Nowadays, many roles in industries are being replaced by computers in operating production lines and as personal assistants. So it is time to consider whether you should hire an accountant for your business or start replacing them with accounting software.
Let us look to better understand the pros and cons of hiring accountants and using accounting software.
Accountant vs. Accounting Software
You can’t run a business without accounting. It helps keep track of income and expenditures and provides the government, management, and investors with financial information to make the right decisions.
Businesses are required to file their financial statements with the Registrar of Companies, stock exchanges, and tax authorities.
Whether your business is big or small, keeping your financial records up to date and clean is essential. Maintaining such financial records will help keep your business afloat, and it’ll help you make decisions without pushing your business down the hill.
You’ll have to do accounting for every financial year. Accounting can be in the form of self-assessments for sole traders and partnerships and year-end accounts for limited companies.
Most business owners want to control their own finances, and that’s how it should be. But hiring an accountant wouldn’t seem like the right idea during the early stages of starting a business as their cash flow will be limited.
If you look at the bigger picture, you’ll understand that hiring an accountant can help you keep costs low and provide various benefits for your business. In addition, accountants will provide you with advice that will assist you in making positive business decisions as they understand many aspects of tax laws.
Hiring an accountant is the first step to starting any business, but there are many accounting software to help you deal with your business’s financial operations. Accounting software is an essential tool for managing financial data and offers many benefits to optimising your business.
Accounting software can automatically capture business data, including expenses, sales, inventory, payroll, and many more, with less human involvement. It can also reconcile bank accounts, manage clients and generate financial reports.
To maintain proper financial accounts, you need to find the balance between both options and bring out the best for your business.
In that sense, you might assume that you wouldn’t need an accountant to help you out. But that’s not how it works.
Why Do You Still Need to Hire An Accountant?
There’s certainly a difference between letting a human handle your finances and putting software in place to work its way.
Hiring an ACCA or CPA-qualified accountant for your business will allow you peace of mind, knowing that you have a qualified person who can help you understand financial matters.
As a business owner, when you deal with company finances, it is better if you have someone who will be able to help you understand and translate it so you can make better financial decisions regarding your business.
This interpretation of financial information which helps in planning, can only be done by accountants and not by accounting software. This is because only accountants can put the data into context and present it clearly to help you gain maximum benefits. Also, accounting software cannot sit there and discuss your business’s operations with you.
Accounting software makes decisions that are based only on pre-programmed rules. Therefore, they can make suggestions based on the data but will not be able to converse with the business owners on how to make decisions.
Most business owners end up doing the accounting for their business during weekends and lose interest as they don’t get to spend much time with their family and friends.
That is why you need to hire an accountant to take care of the bookkeeping. You will definitely need a helping hand to grow your business by identifying savings and meeting tax obligations. Moreover, you also get to enjoy your weekends.
Hiring an accountant need not be expensive, and you just need to find the right and trusted one. Use the accountant for important business needs where human expertise is necessary, such as preparing the financial statements for the end of the year, submitting tax returns, and managing cash flow.
An accountant for your business seems like the best idea as you can engage and discuss your business’s finances and make good decisions. In addition, there is nothing like having a one-to-one discussion with a human who has spent years sharpening their skills, right?
Why you need to hire an accountant:
- To give your business’s finances the attention it deserves.
- Provide accurate records of finances.
- Tax planning services help reduce the amount of tax you have to pay. This helps to lower the tax burden.
- Improve your cash flow and invoicing.
- Helps the reduction of unnecessary costs and boosts profitability.
- Helps improvement of your business by determining what drives revenue and profit.
- Helps the assessment of business performance.
- Helps avoidance of unnecessary interests and fines.
- Helps make sound business decisions.
- Handle growth transitions.
- Lessens stress by reducing your workload.
- Saves you time and money.
- Provides support for your business plans.
- Give financial advice.
- Eliminate errors.
- Enables you to plan ahead and manage growth.
- Helps you to stay ahead of regulations and trends.
- Handle your payroll.
- To alert you to available opportunities.
- To manage operations and process improvements.
- Helps improve customer relations.
- Helps to warn you of potential risks.
- Helps you take advantage of expert analytics, presentation skills, and forecasting.
Undoubtedly an accountant will add value to your business in numerous ways. Boost the growth of your business by hiring a knowledgeable accountant.
Since only you know your business well, you know the right thing to do regarding everything about it, even accounting. There are many tools to sort and provide a helping hand to help keep your accounts organised.
Choosing accounting software is not a prime necessity, but its benefits can outweigh the costs. But in terms of experience and knowledge, you may need to hire an accountant to look after your business.
Just because you use software doesn’t mean you can’t hire an accountant for your business. Accountants and Accounting software can work together to provide better service.