Do I Need an Accountant if I Use QuickBooks?

Yes, you do need an accountant if you are already using QuickBooks. Relying on software can cause losses, even for a small business. 

In Q4 of 2023, the ‘critical’ financial distress levels rose over 25% compared to Q3 2023. This exponential rise caused 47,000 UK businesses to experience a near collapse in Q1 2024. The core cause behind such distress is mismanaged and prone to error financials.

This article revolves around why you need an accountant using QuickBooks. Why relying only on accounting software is not a good idea, and how combining both can help your business thrive. 

The Power of QuickBooks

QuickBooks is an all-in-one solution for businesses lacking accounting solutions. In addition to its numerous features, its invoicing and expense tracking capabilities stand out. 

QuickBooks offers you valuable insight into your financial health and operating performance. Here are some of the most potent tools of QuickBooks:

• Profit and Loss Report
• Balance Sheet Report
• Sales Report
• Accounts Receivable Aging Report
• Accounts Payable Aging Report
• Cash Flow Statement
• Project Profitability Report
• Inventory Valuation Report
• Customer Transaction Detail Report
• Vendor Transaction Detail Report

Why You Need an Accountant Beside QuickBooks

QuickBooks is an excellent tool with exceptional features but no replacement for an accountant. 

Here are some highlights on why you need an accountant besides QuickBooks. 

Specialised Knowledge

Successful accounting professionals can offer specialised skills and knowledge despite varying accountant duties. 

• Tax planning, financial analysis, and regulatory compliance. 
• Optimise your QuickBooks setup, insights on financial data, and accurate reporting. 
• An accountant can retain accurate transactional records, evidence, and business strategy advice. 
• Compliance with regulations.
• Guidance on processing general entries. 

All accountants, in one way or another, have natural aptitudes in these and other areas. Exploring such resources to uncover the accounting benchmarks you will need in the future. 

Tackle Complex Financial Scenarios

Building and maintaining finances with just QuickBooks can be challenging when dealing with complex financial scenarios involving uncertainty, variability, and interdependence. Scenarios like:

• Multiple entities or locations
• International operations
• Build modular and flexible models
• Sound financial advice on the latest tax legislation
• Seek feedback and validate
• Payroll processing with many employees
• Identify key drivers and assumptions
• Incorporate uncertainty and probability

A Human Touch

While QuickBooks handles most of your basic bookkeeping and reconciliation automatically, an accountant monitors the automated processes and gives them a human touch. 

Here’s how our expert accounting insights can add value to your experience with QuickBooks: 

• Exception Handling: An accountant identifies and addresses exceptions that may occur in your financial data. From reconciling discrepancies to resolving payment issues, an accountant is dedicated to ensuring that your records are accurate and up-to-date. 
• Continuous Monitoring: Continuously monitor transactions and financials, proactively identifying any anomalies or discrepancies that may require attention. By being vigilant and responsive, an accountant can help you mitigate risks and maintain the integrity of your financial records. 
• Customised Support: Every business is unique, so an accountant’s customised support tailored to your needs is vital. Whether you require assistance with complex transactions or specialised reporting requirements, you need an accountant’s support and guidance. 
• Timely Resolution: With an accountant by your side, you can trust that any issues or concerns will be addressed promptly and effectively. An accountant ensures that you have confidence in the accuracy and reliability of your financial data. 

Why Using Just QuickBooks is Not Recommended

Of course, you can go through some excellent QuickBooks guides to learn more. However, what happens when you get stuck? How frequently can you contact the QuickBooks support team with your accounting software problem? 

Here are some of the areas where QuickBooks is not that good:

• Handle Receipts: You may need more time to upload expense receipts. You risk failing HMRC compliance checks, and once the HMRC gets a check back, you don’t have time to gather evidence.
• Reports Interface: If you use QuickBooks, you may notice the unfriendly interface for reports. If you need customer sales with addresses on them, you cannot pull them out of QuickBooks Online Accountant, which was much easier with the Desktop app. 
• Review QuickBooks: Though you have successfully managed your bookkeeping, you must have your accounts reviewed by a professional. 
• HMRC Submission: Using QuickBooks for HMRC self-assessment can help the process, but having an accountant can provide additional benefits. Here’s why you might still need one:
  • Maximise deductions or manage tax implications of various financial decisions.
  • An accountant can handle the self-assessment process for you, allowing you to save time.

When HMRC has questions or disputes, an accountant can represent you and handle communications with the tax authorities.

If you have enough time at the cost of running the business, it may be a viable option only to use QuickBooks.

Conclusion

While QuickBooks is a powerful accounting tool, there may be better decisions for your business than relying solely on it.

For a more comprehensive approach to managing your finances, consider partnering with a professional accountant who can provide expert advice and ensure your books are always accurate and compliant.

Ready to advance your financial management? Connect with our experienced team today to get a quote, and let us handle the complexities so you can focus on growing your business. 

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