Choosing Between Accounting Software And An Accountant
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Posted On :
Aug-25-2011
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Article Word Count :
482
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Is it necessary to use accountants to monitor the business accounts and transactions, or can an accounting software package alone be able to fulfill this role? Let us try and make a comparison between what each can do.
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As we all know, accounting is a very vital component of every business. It covers the flow of transactions, tracks expenses and employee benefits and taxes due to the government. With its help, businesses are also able to evaluate their own strengths, weaknesses, and potentials. And in a company, this function is generally handled by one or more accountants.
There are some business owners today who want to reduce the number of their employees, and prefer to manage the accounts of their businesses on their own. This is possible with the help of accounting software applications. These applications are proven by software vendors and business owners alike to be efficient and beneficial for their businesses.
However, is it necessary to use accountants to monitor the business accounts and transactions, or can an accounting software package alone be able to fulfill this role? Let us try and make a comparison between what each can do.
Using An Accounting Software
An accounting application can address all accounting functions, depending on its type. There are two main types of this software. The first type is the traditionally-installed software which could be accessed from just a single computer or a local area network only. The other type can be accessed through the Internet, which is also popularly known as Cloud Accounting.
An accounting software for business only requires very basic accounting knowledge. Anyone can use it, given that he/she is properly trained on utilizing the software. The company needs to purchase the software and pay for any maintenance and updates. Using a non-accountant to operate the software will be significantly cheaper then engaging a trained professional.
Hiring An Accountant
An accountant is a trained professional who takes care of all accounting and bookkeeping responsibilities.
The accountant, whether he/she is an additional staff or offers outsourced service, needs to be paid periodically for professional fees or salary. This is an additional expense for the company. Accountants cannot work continuously since they require breaks and holidays. If they ever have to work beyond their normal hours, additional fees can be incurred.
However, the accountant can make decisions, adjustments and solve problems relating to the company's transactions and circumstances.
A Good Solution: Choose Both Accountant And Accounting Software
An accountant of course can also use an accounting application in conjunction with their specialized knowledge. While anyone who is not an accounting professional can still operate the software, he/she may not be the best person to make decisions and adjustments and solve any problems that may arise.
Hence the best solution is to use a combination to get the best value. Use a non accountant who is properly trained in using the accounting software to do the data input and day to day tasks and use an accountant to assist with the decision making and problem solving.
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Article Source :
http://www.articleseen.com/Article_Choosing Between Accounting Software And An Accountant_76593.aspx
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Author Resource :
Geobradley Hinchcliffe works for Shoebooks, premium provider of accounting software solutions for SME businesses in Australia. Check out Shoebooks business accounting software and experience the advantage of our bookkeeping accounting services for businesses. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn, Victoria, Australia.
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Keywords :
accounting, accountant, accounting software, business accounts, business transactions,
Category :
Business
:
Business
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