If you own business, then you have to keep track of taxes, payroll, payable accounts, receivable accounts and other financial obligations that is associated with entrepreneurship.
As you have many things to deal with, you will always need a simple way to maintain your financials in order. Well, in this case, what would you do? Hire an accountant or go for an accounting software for these important tasks.
1. Cash Budgeting
It doesn’t matter if you have an established business or a startup enterprise, your company works only when manage and budget your capital efficiently. In case you are using software, you can easily manage the financial aspects of your company and get exact outgoing costs.
If you have hired an accountant, it comes with less certainty regarding expense. You have to make your own fee structure. In case you have agreed to a flat rate, you might end up spending more than you initially thought. Therefore, software programs remove the potential for sudden shock.
2. Managing Complex Accounting Issues
Along with significant experience, an accountant brings expertise to the corporate table which will be extremely beneficial due to his work for years in similar businesses. Even with increasingly sophisticated, software can’t provide an answer to every question you stumble upon.
When it comes to large and complex business, they need an accountant on staff. However, for a less complex task, you may definitely benefit from purchasing the software. For example, you can track estimates, generate invoices and create client quotes. In the case of heavier and complex jobs, you can assign them to your accountant.
3. Increasing Company Efficiency
Software which is web-based, allows you to complete accounting tasks without any external intervention. Whether it comes to invoicing clients, reviewing the Q4 budget, or preparing your corporate taxes, it reduces the time to a significant extent. For example, if you need any task to be completed within an hour, you won’t have to wait for someone to act on your request.
4. Internal Audit
Internal audits are standard procedure that business owners prefer to protect their business from fraud, mistakes, and many other hazards. A certified professional accountant can perform audits with better precision and depth than software.
Having said that, the modern software comes with multiple safeguards against omissions and errors. Such software executes constant audits and alerts you in the case of potential issues. So if you have a small business, you won’t have to hire an accountant.
Regardless of the type of your business, consider all the reasons stated above before hiring an accountant or purchasing an accounting software. If your business needs can be met by web-based accounting software, then you don’t have to increase your staff by hiring an accountant.
Did you find these reasons helpful to decide what to do? Let us know by submitting your views in comment section.