While using tools seems to be an easy task, it comes with several drawbacks too. The same is the case with accounting tools. While it may seem like an easy way to keep track of your finances, there are several downfalls to using these types of tools.
In this blog post, we have shared a few comparisons between hiring an accountant and subscribing to accounting software for your small business.
#1 Human Touch
When you hire an accounting firm or accountant, you receive personalized attention for all your financial matters. This is in contrast to using tools, where you don’t get such a benefit.
There are many reasons why the human touch is necessary for handling your accounting matters.
First and foremost, accounting is a very personal process. You are dealing with people’s money, and so you need to be able to build trust with them. This can only be done through human interaction.
Secondly, accounting is a complex process, and so you need someone who can explain it clearly to you. A human accountant can do this much better than any software program.
Finally, human accountants are simply more intelligent than computers. They are able to catch errors and make sure that everything is correct before it goes out the door.
Accounting tools may be a quick and easy way to keep track of your finances, but it lacks the personalized advice that an accounting company can provide. When you hire an accounting company, you get the benefit of their attention and valuable advice. They can help you budget your finances and make sound investment choices.
An accountant can help you change your strategies according to the dynamic nature of your small business. This is because they understand the numbers side of things and can offer insights into where your business might be losing money or not making as much profit as it could be. They can also help you make changes to your pricing, marketing, and other areas of your business in order to boost your bottom line.
Although accounting software is designed to streamline the process of tracking and managing finances, there can be occasional glitches that may cause problems with your financial records. In order to avoid any potential issues, it is advisable to hire an accountant who can keep an eye on your finances and ensure everything is in order.
#4 Data sharing
When you subscribe to an accounting tool, your financial data is stored in a shared space. An accountant will make sure that your data is protected and never shared with any online platform. This way, you can be confident that your information is always safe and secure.
Hiring a professional accounting firm or an accountant is always cost-effective as compared to subscribing to an accounting tool. This is because a professional accountant or accounting firm can provide you with expert advice and service that can save you money in the long run. In addition, they can help you stay organized and keep track of your finances, which can save you time and hassle.
#6 One-stop solution
An accountant can provide you with other required services such as corporate secretarial services, auditing services, income tax filing, company formation & company closure services. But in the case of an accounting tool, you just get the basic accounting & bookkeeping services.
An accountant can offer you peace of mind that your finances are in good hands. They will work with you to ensure that your books are accurate and up-to-date and can offer advice on financial planning and management.
An accounting tool may be less expensive initially, but over time the cost of maintaining it and ensuring its accuracy can add up.