Accounting software has given many businesses the ability to manage and track their finances with little or no help from an accountant. Today’s top accounting software is loaded with features that make most accounting tasks a breeze. However, no amount of accounting software could truly replace a competent accountant. Accounting software no matter how advanced could be considered a one-stop shop for all your accounting needs. There are still some things that only professional accountant could bring to the table.
Handle Your Taxes
Accounting software can help you greatly in determining how much you owe in taxes. Although this is far from being rocket science, we all know how complex the tax codes could be. This is why enlisting the help of an accountant is the best way of avoiding costly penalties and over-payments.
A certified public accountant can help you make smart financial decisions in terms of optimizing your business for tax purposes. They could help you determine true asset value, payment periods and other factors that could ultimately determines how much taxes you should pay. Accountants could also save you from the trouble of audits.
Accountants are not only experts in crunching numbers but are also excellent sources for sound financial advice. The only person that knows the ins and outs of your finances except for you is your accountant who knows all your transactions. Nothing tells how your business is performing like solid numbers. An accountant could quickly identify your businesses’ strong points and areas that could be improved.
Accountants are adept in explaining difficult financial concepts through charts and reports. This gives you better options on how to create better strategies for growing your business. Accountants could help you understand how a business loan, buying against leasing and other transaction could affect the health of your business.
Accounting software makes it easier for you to correct simple inaccuracies. It makes complex accounting tasks easy with its simple interface. But even the best accounting software would not be able to catch discrepancies or catch fraud. However, an accountant could conduct an audit to determine the accurateness of data being entered.
Auditing is considered a good business practice. It ensures accuracy and builds confidence among creditors and investors. Accountants provide professional auditing services allowing you to spot any errors and inaccuracies. Auditing as a project management tool assures that all projects are on track and provides you valuable data for improving the process.
Accounting software makes quick and easy work of your accounting needs. But it still does not eliminate the need for human intervention such as entering and interpreting data. And the size of your business determines the amount of time required for managing your finances. While smaller businesses might require less management, medium and large-scale business needs more hands to keep track of their finances.
There have been lots of discussions on whether accounting software could replace the services of an accountant. While accounting software has made it easier for businesses to manage their financial transactions, it still does not provide all the services that an accountant could provide. Accounting software was not created to replace accountants. However, this could be used to complement the work of an accountant to improve the efficiency of your business.