Accountancy software like Xero is a game-changer for many businesses.
Helping business owners keep track of daily finances means that you may feel you can do without an accountant.
But if you are thinking that’s a possibility, here are some reasons why it’s better to use an accountant along with software.
Accounting and bookkeeping
Accounting and bookkeeping are not the same thing! If you keep your own books using software, you’re basically entering income and expenditure, which is made much easier with the latest tech.
Accountants then take this information from your books and prepare sophisticated reports for you. While profit and loss statements, balance sheets, aged creditors and other reports can be produced using such software, it isn’t wise to submit them until a professional takes a detailed look at them.
If you’re a busy business owner or self-employed, you don’t have the time to keep up to date with the latest tax legislation and guidance published by HMRC. Some days, there are dozens of updates from them, and then there are changes in government law!
Your accounting software could be the best in the business, but it’s only as good as the information you give it. It takes humans to correctly categorise business running costs and only a human can spot something unusual.
Accountant or software?
Software and computers can do a lot – but they can’t give advice. A good accountant can provide tax mitigation strategies tailored to your personal circumstances, which no software can do.
When it comes to company and personal tax returns and planning, it’s always best to leave it to the experts. An accountant worth their salt will always aim to save you more in reduced tax liability than the cost of their fees.
Time = money
If you’re spending all your time inputting data, you aren’t focusing doing what you do best: running your business.
Should your car break down, you call a mechanic. When your computer is faulty, you get the IT team in. The same applies to your accounts.
You might be able to do some of it yourself, but you’re best getting in the pros. It will save you money in the long run and also time. That’s time you can spend building your business and making more money. And that’s more than likely why you started in the first place!
• If you want help interpreting the figures in your business, contact the team at Concept Accountancy today.