Accounting software works best with a human element
Businesses are beginning to wake up to the potential of accounting software as a means to streamline procedures, automate invoicing and payment, and get a cash flow overview at a moment’s notice.
However, with software’s full potential having not yet been fully realised, many small business owners and freelancers are plumping for cheap (or even free) accounting software that passively aggregates data and relies on interpretation by the business owner – thus missing out on the benefits of linking accounting software to a fully-trained accountant.
Advanced accounting software such as FreeAgent or Xero may require a little more initial financial outlay, but trying to find value with cheaper software is a false economy.
- impending changes to tax or other legislation
- simplifying the interpretation of data
- flagging up erroneous trends
There is no software that can use independent initiative to warn you of these – but a professional accountant can.
Also, if a business’ accounts indicate that tax has been underpaid, the damaging costs of an audit (with business suspended during the investigation) and the penalty that HMRC will issue if underpaying is proven, will far outweigh the cost of accountancy services.
So, though technology is undoubtedly the future for business accounting, it pays to also have an expert accountant interpreting your data and providing personalised advice, to ensure you get the value for the service that you are looking for.
To find out more about how accounting software could streamline your operations, call on the experts at 3 Wise Bears today.