If you’ve ever looked up accountants in your area, or googled a simple question about tax compliance, you’ve no doubt been bombarded with targeted ads from accountancy software companies. The promise of a hassle-free app providing cheap, easy, and quick solutions might be enticing, but a one-size-fits-all software can’t compare with the expertise, customization, and care of a real-life accountant.
An app makes promises it can’t keep
“One click and you’re done.” “Payroll handled in just a few taps.” “Never worry about your taxes again.” These are just some of the promises we’ve seen from software companies promoting their product. In reality, these statements are as irresponsible as they are misleading.
A good accountant would never promise to solve all your problems with some basic information and a few answered questions. Accountants and bookkeepers train for many years to become experts in our field. It’s not easy, and we would never suggest that it is. Apps want you to believe the answers are obvious because it’s the only way they could deliver on their promises of one-tap tax compliance and trouble-free accounting at such a low cost.
Doing things right is better than doing them fast
It’s not uncommon for a new business owner to try an accountancy app at the start of their journey. It seems like an obvious solution for someone short on time and looking to save money. Unfortunately, the time and money you save downloading software will be spent later on trying to untangle all the issues it causes.
With the rise in popularity of accountancy software, we’ve also seen a rise in new clients coming to us with incorrect data and sorting errors. Often, these problems arise as a result of human-error. You’re not an accountant – that’s not your area of expertise, nor where your passion lies. If the information you’re inputting is incorrect or incomplete, it will result in an inaccurate output. This could result in you overpaying on taxes and losing out on money that could have been invested back into your business or – even more stressful – underpaying on taxes and opening yourself up to an audit by HMRC.
An accountant or bookkeeper has the diligence and experience to carefully and accurately work through your numbers. If they’ve invested in the high-quality, expensive versions of certain software, you’ll benefit both from an app’s efficiency and a watchful eye ensuring everything is being done correctly. This will save you the money and hassle of encountering future problems, ranging from minorly troubling to more serious.
A quality accountant is an investment, but it’s one that will pay for itself many times over well into the future.
An accountant gives unmatched expertise and customization
Your business is special. You work hard on it every single day, making it the very best it can be. Don’t you want an accountant who puts in the same level of care and dedication?
Accountancy software is designed to work simply and fast, with no room for intricacies or complexities. An accountant, on the other hand, will take the time to understand your business as a whole. They’ll be able to tailor their advice to suit your changing goals and priorities in a way an app never could. More than that, an accountant doesn’t just preempt problems; they foresee opportunities that could bring your business to a whole new level.
If you’re considering downloading software to handle your finances, ask yourself:
- How much do I know about accountancy principles and tax legislation?
- Do I understand which expenses I can claim? Which I can’t? Do I know what reliefs are available to me or how capital allowances work?
- What are my obligations to HMRC? What penalties might I face if I get things wrong?
- Do I have the knowledge to protect myself, my employees, and my business?
Educating yourself on all the principles and rules of accountancy is a massive burden to undertake, especially when you have a business you need to run. With an accountant, you have an on-call specialist who will help you understand the why, the how, and the what next of your business’ finances. If you’re ready to find a support network to help you along your journey, get in touch with Tyrrell to learn more.