In an increasingly high-tech world of business, it seems that every task can be completed via an online app; and accounting is no exception.
Brands such as QuickBooks, Xero and FreeAgent provide cloud-based software to small businesses and sole traders that are affordable, simple to use and convenient.
However, whilst cloud-based accounting apps are undoubtedly useful tools; it is important not to underestimate the value that comes with the expert advice and consultancy offered by an accountant, especially with more complex matters such as tax.
Take a look at our 5 reasons why hiring an accountant is better for your business than using accountancy software alone:
1. An accountant has the expertise to save you money
Chartered accountants are qualified professionals who have dedicated time to building up expertise in their field.
They will be able to keep you informed about any tax relief or other benefits available to you which may save you money.
Accountancy apps won’t, for example, be able to let you know whether you’re eligible for research & development relief credits or enhanced capital allowances. An example of this would be being able to claim 100% first year capital allowance on a product if it’s on the Energy Technology List (ETL) at the time of purchase. A chartered accountant would be able to advice you of this scheme to make sure you take advantage of this relief.
2. An accountant can spot mistakes before they cost you money
Mistakes on your tax return will cost you money. A wrongly placed decimal point, an extra zero, a figure in the wrong box; it’s so easy to do – especially when filling data in digitally.
There is a penalty of up to 30% of underpaid tax if HMRC deems a mistake to be due to ‘careless behaviour.’ Of course, you could also end up paying more tax in the first place if a mistake is made.
A chartered accountant will be able to look through documents before they are submitted to prevent potentially expensive mistakes being made.
3. An accountant will save you time
Even when using an accounting app, data still needs to be entered regularly which can be a time-consuming task in itself. Extra time will then be spent checking over figures ahead of filing a return and going back through data to rectify any mistakes. Time will also be spent interpreting the data and creating reports which tell you how your business is preforming.
Business owners could find that managing their own accounts prevents them from spending time on growing their business. These tasks are also often carried out over a weekend or in the evenings as there’s just not time to do it during the working day.
By using a chartered accountant, you’ll be freeing up valuable time to focus on your business. They will be the ones to check over figures and make sure they’re ready for submission.
4. You will build a relationship with a trusted business advisor
A good chartered accountant can assist with so much more than the core accounting areas of bookkeeping, payroll, self-assessment and VAT.
Many leading accountants can offer business advice, strategic financial planning and tax saving advice.
Building a relationship with your accountant will allow them to get to know your business and offer bespoke advice and support to help it grow.
5. With an accountant, you get the best of both worlds
Many chartered accountants work seamlessly alongside several online accountancy software tools to ensure you’re getting the most out of them. This means that you can use the best software as well as having access to expert advisors.
Ormerod Rutter also has its very own digital portal, OneClick.
Our OneClick portal allows you to work with us closely and efficiently.
Accessible from your computer or mobile device, OneClick allows you to send, review and authorise documents, securely transfer financial data and submit VAT returns. There’s also an easy to use messaging facility which means that access to our experts is at your fingertips.
We’d love to show you our OneClick portal and illustrate how we at Ormerod Rutter combine 35 years expertise in accounting with the most up to date technology to give the best possible service to our clients.
Come and see us at the Hereford and Worcester Chamber of Commerce Business Expo on March 12th at the Three Counties Showground where we will be showcasing OneClick, giving demonstrations and answering any questions.
