Is Xero a replacement for my accountant?
Many businesses have welcomed apps like Xero and Quickbooks. They have definitely made life easier, and empowered entrepreneurs to manage their own finances. Xero is certainly making life easier for the Get Ahead regional directors! But how far can you go with finance software? When do you need to hand over to an accountant?
Advantages of Xero and Quickbooks
Accountancy apps like Xero and Quickbooks are a great solution for the day to day running of your business. They are quick and easy to use, and connect to your business bank account. They allow you to:
- keep up with invoices and expenses
- pay bills
- claim expenses
- accept payments
- track projects
- manage payroll
- complete bank reconciliation
- manage your inventory
Many of the functions are very clear – ideal for people who know their industry but aren’t financially minded. The downside of this is that some of the functionality is too basic to use on its own, so savvy business owners usually work with an accountant too.
If I use Xero, why do I need an accountant?
The two biggest challenges of doing your own accounts are ensuring you have completed your financial reporting correctly, and ensuring that you’re paying the right level of tax. This is where a real person with the right knowledge, expertise and experience is invaluable. An accountant will cover essential areas which Xero cannot, like:
- financial reporting
- tax efficiency
- business planning
An app can only deal with the information you give it, but a person can reason and evaluate. Your accountant will be able to provide wider financial advice and help you plan for business growth. They will be able to help you improve cash flow, or help you pay the right amount of VAT. Paying your taxes is important, but you shouldn’t be paying out more than you need to. Ultimately, an accountant can save you money – investing in accounting expertise is usually well worth it.
Xero and accountants working together for your business
Many accountants now have a Xero certification, which means they are qualified to do your accounts in conjunction with you using Xero for your day-to-day invoices and expenses. Savvy business owners work with both accounting software and their own accountant to keep their business HMRC compliant and save money.
Outsource your accounting
At Get Ahead, we know there’s no substitute for the human touch, and working with an experienced accountant is key to business success. To find out how Get Ahead can help you keep on top of your business accounts, get in touch today on 01483 332 220.