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Do I Need an Accountant If I Use Quickbooks?

Do I Need an Accountant If I Use Quickbooks?

There is a burning question that many people, especially business owners, have in mind, “Do I need an accountant if I use QuickBooks?” QuickBooks can be considered quite popular among modern entrepreneurs due to its easy-to-use interface that has various powerful instruments. But does that mean I can eliminate an accountant completely in exchange for QuickBooks? In this blog, let’s examine the strengths and weaknesses so that you can decide if you still need an accountant.

What is QuickBooks?

QuickBooks is an accounting software that is used with relative frequency to increase the income of small companies. QuickBooks allows tracking of income, expenses, invoices, and many more, using even a basic version it is possible to run a report. The presented software has been created to help you organize your financial life better, although it also has such opportunities as cloud computing.

QuickBooks boasts on its portal that whether you are a freelancer, a start-up, or a growing business, it has all the tools that can help you manage your business accurately as well as, legally. But does it cover everything? Or will there come a point when you’ll still need to ask, “Do I need an accountant if I use QuickBooks?”

Advantages of QuickBooks for Businesses

Advantages of QuickBooks for Businesses

1. Easy to Use – QuickBooks is created with the mindset of a small business owner. It doesn’t require a person to be a professional in accounting so they can be able to use it. That gives the application a fairly simple and user-friendly interface and you can set up the functions, like invoicing and payments control.

2. Cost-Effective – Since it does not charge high fees, through its available plans, QuickBooks is suitable for businesses seeking to cut costs. QuickBooks can cost less than hiring an in-house accountant, especially if you require basic services for your financial management.

3. Real-Time Financial Insights – QuickBooks has the most basic and easily understandable report-giving features which include a report center; balance sheet; cash flow and finances; and payroll. This helps the business owners to make economic decisions with informed decisions without having an accountant.

4. Cloud-Based Accessibility – QuickBooks Online offers cloud-based so the financial data is available at a time without the need for a computer or laptop. This is especially beneficial to business people since they are most of the time on the move.

5. Third-Party Integrations – QuickBooks also works well with other third-party apps such as PayPal, Shopify, and some payroll services, making QuickBooks your go-to business accounting solution.

See Also: How to Choose/Hire an Accountant for Your Business

Can You Use QuickBooks Instead of an Accountant?

One needs to remember that even though QuickBooks is one of the most efficient software today, it does have its drawbacks. It can perform routine calculations and accounting as well as produce reports, so does that mean the accountant’s services are no longer needed? Let’s explore.

QuickBooks is very useful in performing operations in your day-to-day activities, however, an accountant has better insights and gives guidance. Anyone who has asked a question such as, do I need an accountant if I use QuickBooks, has already gotten a response that depends on the level of the company’s financial activity.

For example, an accountant will be in a position to explain the data that QuickBooks offers. They also provide services in tax consultancy, budgeting, and other strategies including business expansion or handling issues like cash management. Get in touch with us for small business bookkeeping services in USA today!

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Do I Need an Accountant If I Use QuickBooks?

So, do you need an accountant if you’re already using QuickBooks? Here are some points to help you understand the role of an accountant alongside QuickBooks. Now, let’s get to the heart of the matter: “Do I need an accountant if I use QuickBooks”

1. Handling Complex Taxes

QuickBooks enables users to monitor their financial information and undertake easy tasks that are related to taxes without requiring the assistance of tax professionals. Remember, a tax accountant has broad knowledge of tax laws and can help identify tax deductions, credits, and tax benefits that QuickBooks fails to recognize. 

Hiring a tax accountant is also useful because they can always be updated with the new tax laws hence helping your business to be compliant. For one, if you are a small business owner with more than one form of business income or a range of investments, or if you own an LLC or partnership, an accountant can provide specific advice tailored to your situation to ensure your taxes are as low as possible.

2. Financial Forecasting

The current financial data is served efficiently by QuickBooks; however, the tool cannot generate long-term financial projections. Your historical data is valuable because an accountant can use it to approximate revenue and anticipate future sources and uses of cash necessary for future development. 

Budgeting is crucial when it comes to decision making for instance, on hiring of employees, expansion of investments, or acquisition of machinery. An accountant’s knowledge makes it possible for you to establish sound objectives on matters concerning finance, especially the potential dangers and opportunities that lie ahead. 

QuickBooks offers the actual data, while an accountant analyzes this information to provide you with reports that correspond to your business strategy.

See Also: What Does an Accountant Do for Small Businesses?

3. Compliance and Audits

QuickBooks allows financial records to be maintained properly but when it comes to following the laws of taxation, industry standards, or an audit, an accountant is extremely valuable. An accountant keeps you abreast with the legal requirements norm of your business at local, state, and federal law, thus preventing you from incurring penalties or fines, on the same. 

An accountant, for example, can assist in the collection of relevant documents, accompany you in the process of audit, or provide the necessary guarantee that your paperwork is orderly. 

The former is a tool specialized in data organization whereas the latter is a professional who is capable of handling legal and procedural issues regarding accountancy and the company’s functioning within a legally sensible scope.

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4. Custom Financial Advice

QuickBooks just gives you an overview of your business financial position while it doesn’t give you a professional consultation about your business. An accountant provides specific financial advice that involves ways of increasing cash inflow and reducing the amount of cash outflow, especially on debts or reinvestment. They work with QuickBooks data and offer insights that are relevant to the achievement of business goals. 

For instance, an accountant may assist with the decision of whether it is cheaper to hire new equipment or buy them or offer the best approach towards budgeting or the various ways through which one can cut costs. Their advice ensures that your financial decisions are well taken and more specifically they are personal to you.

5. Error Mitigation

Even though QuickBooks is an automated software it cannot eliminate mistakes such as those made when entering data that is wrong or wrongly categorized. An accountant audits your financial statements to make sure they are correct, noting fraudulent activities likely to cause further financial losses or wrong tax returns. 

Some of the everyday mistakes that can arise in bookkeeping are failure to balance cash flow or perform the right tax remittances. In this method of accounting, an accountant can easily tell if there are problems with certain entries or accounts by comparing and balancing them. 

It also has less time consumption and less expenditure in the long run so that the money records can be precise and accurate as per the rules.

So, to reply to your question, do I need an accountant if I use QuickBooks? The quick solution is sure, but it relies upon your business’s complexity. QuickBooks is a first-rate tool for daily bookkeeping and monitoring, but an accountant gives expert advice, financial forecasting, and compliance help that a software solution alone can’t offer. 

 

Why Choose ProfitSpear for Accounting Services in USA?

At Profit Spear, we intend to deal with your finances with utmost integrity and diligence. Whether you’re using QuickBooks or any other accounting software program, we will equip you with transparent financial statements so you could make knowledgeable economic choices and reduce your taxes where possible. Get in touch with us today for small business bookkeeping services in USA.

FAQs

Yes, QuickBooks can handle many basic accounting tasks, but an accountant offers expertise in complex areas like tax planning, financial forecasting, and compliance that QuickBooks alone can’t provide.

QuickBooks is great for day-to-day bookkeeping, but for tasks like tax strategy, audits, and detailed financial analysis, having an accountant alongside QuickBooks is often necessary.

Basic accounting knowledge helps when using QuickBooks, but the software is user-friendly and offers guidance. However, complex tasks may still require an accountant’s assistance.

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