Majority of SME owners don’t wish to manage their financial affairs themselves. They believe they could use their valuable time developing the core of their businesses rather than getting into the hassle of bookkeeping. But who would they choose to do this job? An accountant or an accounting software? Well both of them have advantages and disadvantages; though the winner is clear. Read till the end to know the answer.
In preceding years, hiring an experienced accountant was one of the basic requirements of starting a new business. The guidance and support of an accountant towards all the concerned matters including the launch and formation of a new venture was considered indispensable. However, the advent of accounting software has raised a question on the importance of an accountant’s role in business finances. Accounting software have made it simpler for SMEs to keep their business records methodical and well-regulated. Besides, there are several reasons behind the rise of accounting software and the way they have impacted the outmoded role of an accountant.
Earlier, the expense of hiring a professional accountant was crucial for operating any business. These accountants used to charge heavily on monthly, per hour and even per minute basis just to take care of all your bookkeeping needs. Nonetheless, they used to be a substantial burden on the revenue generated by a business. On the other hand, accounting software like LedgerMax only starts from Rs.15000/month and provides a comprehensive range of services from billing, invoicing, attendance, payroll, inventory management and CRM. LedgerMax is an accounting and finance software for growing SMEs which offers enterprise-level features and modules on the most affordable prices.
An accountant works on set schedules mostly from 9 to 5 while an accounting software works 24/7 without any holiday or break. Hence, the rigid nature of an accountant’s working hours can be frustrating for any business owner. This becomes more terrible when there is a close deadline and you need the accountant’s assistance. In this situation, these accountants usually charge overtime which further stresses the business proceeds. LedgerMax is an accounting software that has no time constraints. You can use it round the clock without paying any extra charges.
Regardless of the possibility that your accountant has signed a confidentiality contract with your organization, there are certain chances of privacy breach. The exclusive information relating to your business strategies and future tactics are being disclosed to a third party which can lead to the disclosure of information. On the other hand, an accounting software like LedgerMax does not violate your information security and keeps the data within the business and confidential.
Business owners are directly or indirectly dependent on their accountant in terms of financial affairs. This is because majority of them lack accounting knowledge. However, an accounting software like LedgerMax allows business owners to take control of their finances effortlessly. Its user friendly interface does not necessitate the users to have any familiarity with accounting. Furthermore, it benefits SME owners by keeping them informed about their finances at less than half the cost of an accountant. Also, business owners can achieve business performance rewards by controlling the finances of their organization set against contracting them out to an accountant.
Authorizing all financial matters of the company to an accountant discourages the engagement of business owners in well-organized financial administration. When they assume responsibility of financial dealings inside the business, it promotes collaboration and alliance across the organization in terms of improving the financial performance of the company. LedgerMax lets you become more familiar with the financial activities within your organization as compared to than when they are under the control of an accountant.