Accounting Firms vs Accounting Software: What Is the Right Option for Businesses?

Not so long ago, only a few giant companies had access to legacy software to facilitate complex accounting jobs. Now, there are endless options that businesses can choose according to their convenience. Accounting software is typically more affordable compared to hiring an accounting firm. So, does it mean the end of professionals like accountants or CAs? The answer is no, and let us explain why!!

#1 Accuracy

Accounting software is built to provide useful functionality to improve bookkeeping accuracy. You can use one to avoid calculation goofs and silly mistakes, but it can't catch all types of accounting mistakes and fraud schemes. Accounting firms, on the other hand, can efficiently validate accounting outcomes and correctly code transactions. Having a chartered accountant review transactions and prepare accurate reports gives external parties confidence that the information is correct. Besides, it can also prevent misunderstandings between partners.

#2 Tax Preparation

The complexity of tax laws makes tax planning and preparation highly challenging. Software is undoubtedly smart to carry out basic bookkeeping tasks but not yet fully developed to handle tax preparation. Only a well-educated, highly skilled and experienced accountant can help you with this. Accounting firms in Auckland or other cities optimise the financial strategies of businesses for tax purposes by making intelligent economic decisions regarding:

• Asset valuation

• Inventory costing

• Optimisation of tax year periods

• Cash versus accrual accounting

• Legal entity structure and other factors that might influence your tax burden

Helping clients with tax planning and preparation is not the only area of operations of accountants. Their years of experience and deep knowledge about tax laws also help businesses to avoid penalties.

#3 Financial Guidance

You can always clear your financial doubts with a reliable, friendly accountant. Most professionals are eager to answer their clients' questions beyond the annual consultation. As a result, you will get analytical insights on essential matters like securing business loans, optimising cash flow, growth planning, buying versus leasing, etc. Expert advice on finance-related issues will empower you to make better decisions and secure better outcomes.

#4 Personalised Advice with Human Touch

Human touch is one such benefit that software can never offer, but the question is, how will it help you? Let's understand it with an example. Good family doctors can quickly diagnose his patient's conditions from early symptoms because he is well aware of his patient's medical history. The same thing will also help the doctor prevent potential medical conditions even before they appear. Like a family doctor, an accountant working for several years with you can benefit you in several ways. For instance, he who knows your financial situation and goals well can provide you with personalized tax savings and other financial suggestions.

Conclusion

Accounting software can perform basic accounting and bookkeeping tasks, but it cannot ever replace the need for having an expert accountant on your side. So, in conclusion, we will come down squarely on the accountant's side. Now, the biggest question is, who is the best accountant you can trust to manage your business books? Well, anyone from Elite Accounting. We are one of the best accounting firms in Auckland, offering a full range of services, including:

• Business accounting

• ​​Trust accounting

• ​Investment guidance

• Rental property​ etc.

All our accountants are well trained and highly experienced in managing business accounting. So, if you are looking for a trusted person or team for systematic recording, presenting, and analysing financial information, look no further but us. Contact us now for more queries and help.