Advantages of using an accountant

Accounting professionals are responsible for preparing your accounts.

They should check and analyze the financial affairs of your business.

They will provide you with more security.

You don’t have to worry that you might be doing something wrong without even knowing it.

Business accounts can be scary. Financial issues are something most of us try to avoid.

An accountant provides relief. You can trust the professional.

He will make sure that your business is following all legal measures.

They will provide you with free time.

You will be outsourcing much of your financial work.

You will have more free time to focus on your entrepreneurial and business strengths.

If somebody else does the work for you it will save time.

You don’t have to check through and ensure that your financial reporting is correct.

Managing the finances of a small business isn’t always easy.

As an entrepreneur, you likely don’t have a passion for managing your books.

Learning on the job can be difficult.

However, having a solid accounting system in place is the first step in growing a successful business.

You should know which financial tasks to outsource to a professional.

That gives you a competitive advantage. And it will free up your time.

They will help you to sleep better at night.

With the help of an accountant or bookkeeper, you will ensure that your finances are in order.

And your taxes are correctly filed. The financial affairs of your business are in order.

An Accountant does more than crunch numbers.

He will balance your books.

He can also offer expert advice.

He can, for instance, help determine pricing structures and get financing.

Or you might decide, sometime in the future, that the business needs to be sold or closed.

They can give you some tips on how you should proceed.

This great input is invaluable, particularly when it’s your very first business.

Disadvantages of using accountants

They are not free and can cost you more than you can afford.

You’ll have to pay an accountant for any work they’re doing.

Sometimes, this added amount might break the budget.

The rate of an accountant will vary based on the work he does.

But usually, you can pay at least R500.00 an hour for an accountant and often more.

It also helps if you have a good relationship with the accountant.

But you’ll be increasing your business’s overhead, even if you’re using them only part-time.

An accountant is human and not tested software.

No matter who you hire, they are human.

They still may make mistakes.

If they make a small error, and it’s easily corrected, this usually won’t be a huge deal.

But it also could spell disaster.

An example is if they are putting your business expenses into the software and they miss a key expense.

If this isn’t caught, you may be paying more come tax time because you’ve lost a very valuable deduction.

You also must give them the correct instructions.

Accountants generally work according to what they have learned.

You might get bad advice if you don’t realize that and give instructions outside their experience.

You can Lose Touch.

If you use an accountant for your small business, you will save time.

But make sure that you are still hands-on.

Even so, the accountant you hire is doing the work.

You must still check things regularly.

Make sure that things are running as smoothly as possible.

You should have a partnership with the accountant, and each of you should have an active role.

Look at the current needs of your business.

This is the best way to decide whether you want to hire an accountant or not.

If you don’t like accounting, you might want someone else to take a look at the direction of your business.

But if you have the know-how and time, look into buying accounting software and do it yourself.

Only you know what’s right for you.

Advantages of using accounting software

Your books will be automated.

Today, you need to have access to real-time information.

It becomes essential as we are living in our digitally connected world.

With an automated financial system, you can immediately access your financial information.

All with a click of your finger. This is essential to making informed business decisions.

Also, you can timely report and analyze your business performance.

You will be compatible. You can share information efficiently and quickly.

You will have enhanced features & functions.

Accounting software exploits certain features that make your accounting system easier.

An example of this is the OCR function.

OCR is a function that allows your computer or smartphone to “read” texts.

With this system, you can digitize documents. making the recording of transactions quicker and more efficient.

You will have different access platforms.

With accounting software, you can access your accounting files via different platforms.

For instance, with your tablet, mobile phone, or iPad anytime, anywhere.

They are generally cost-efficient. Depending on the level of depth you need.

It is possible to find accounting services either for free or at an affordable price.

This cost is usually lower than the average cost of an accountant.

Generally, they are simple to use and reliable.

Disadvantages of accounting programs

They can be open to potential fraud.

Not all accounting software has enough audit trails to prevent fraud.

There can be technical issues.

Make sure your service provider can give you all the technical help you might need.

Summary

As a business person, you know you need to be able to have control of your business.

You need to be involved to keep up the budgetary soundness of your organization.

Along these lines, you have many alternatives accessible to you to deal with your funds.

You need not do it all without anyone else’s help.

Having a strong bookkeeping framework set up is the initial step.

You need to realize what to redistribute to a bookkeeper or accountant.

Recruiting an accountant may appear to be an enormous advance for your business.

It also will free up your time to concentrate on your business aptitudes.

The key is realizing what errands to keep in-house.

Which undertakings warrant proficient help.

You want to take care of the essential day-by-day errands needed to oversee a private company.

For this, you need a good accounting program.

Have a look here for some suggestions of the best accounting programs for small businesses.

But now and again, significant occasions emerge.

They might need something beyond dexterity and information.

This is the point at which you may consider employing an accountant or bookkeeper.

He will help you to control the financial affairs of your business.

Managing the finances of a small business isn’t always easy.

As an entrepreneur, you likely don’t have a passion for managing your books.

Learning on the job can be difficult.

However, having a solid accounting system in place is the first step in growing a successful business.

Once you have decided which financial tasks to outsource to a professional, you will have a competitive advantage.

It frees up your time.

An accountant or bookkeeper will ensure that your finances are in order.

And your taxes are correctly filed.

You will gain from involvement.

You need to keep up the budgetary soundness of your organization

You have many alternatives accessible to you to deal with your funds.

You need not do it all without anyone else’s help.

Having a strong bookkeeping framework set up is the initial step.

Realizing what to redistribute to a bookkeeper or accountant as your business develops is the next.

The key is realizing what errands to keep in-house.

And which undertakings warrant proficient help.

You can take care of the essential day-by-day errands needed to oversee a private company.

But now and again, significant occasions emerge.

They need something beyond dexterity and information.

This is the point at which you may consider employing an accountant or bookkeeper.

I personally use an old version of SAGE accounting (PASTEL), and I have an auditor.

I do the accounts up to trial balance with PASTEL.

My accountant/auditor will do the final annual accounts and submit them to the tax authorities.