If a business were a human body, then finance would be its lifeblood. Effective financial management is not just important – it’s essential for survival. After all, the key question is simple: Is your business making money or losing it?
Managing business finances is like steering a ship – you need the right tools and expertise to navigate successfully. This is why it has become essential for businesses to hire an accountant. An accountant brings expertise and strategic insight that no software can provide. Here are some of the most common benefits of hiring an accountant.
1. Catch Errors Before They Cost You
No matter how careful you are, mistakes happen – and even small errors in data entry, such as misplaced numbers or incorrect column entries, can have serious consequences.
According to a 2021 Gartner report, poor data quality costs businesses an average of $12.9 million annually. Additionally inaccurate financial reporting can lead to:
- Wasted time and resources
- Cash flow issues
- Bad business decisions
- Penalties and fines
- Credibility loss
- Inflated debt levels
- Even bankruptcy
While QuickBooks and other accounting software helps automate financial tasks, it can’t detect subtle mistakes or fraudulent activities – because it doesn’t “understand” intent.
What accounting software Misses:
- It processes data as entered – if you input the wrong numbers, it won’t recognize the mistake.
- It can’t apply logic or business context – meaning it won’t flag suspicious patterns.
- It doesn’t detect fraud or missing transactions – which could lead to compliance issues.
Thus, while accounting software is helpful, it can’t account for user error and wasn’t created to see the bigger picture. Human accountants, on the contrary, can scan documents/records for intent and use logic and reasoning to understand the data.
Additionally, the accountants who have been working with you for some time are also familiar with your business’s history and will know the areas that need careful investigation. Therefore, it makes sense for you to hire an accountant even if you are using accounting software.
2. Personalized Financial Advice
Although tools and accounting software can process data and create detailed reports, they cannot interpret the data to give you personalized advice based on it. In contrast, a human accountant provides tailored advice to help businesses make informed decisions.
For example, human accountants can create and share monthly reports with you. These statements will showcase how you are spending money, the amount of money you are making, and whether you have made any profits or not.
These monthly reports will let you know the issues. You will also be able to fix issues involving cash flow before they become too big. The reports can also assist you if you run into complications or issues with the IRS. This is why businesses resort to outsourcing accounting services.
However, outsourcing often results in huge expenses. Hence, it makes sense for businesses to hire remote staff instead. Remote staff specializing in accounting also offer strategies to grow your business if you are stuck. Your remote accountants can offer strategies to attract more investors, form meaningful partnerships, and suggest the risks worth taking.
3. Handle Taxes
Taxes are one of the most dreaded aspects of small businesses. Businesses often struggle to do their taxes. Moreover, tax software makes it even harder to file taxes because the software wasn’t designed to guide you on whether you are filing correctly. It also wasn’t created to help you find ways to minimize liabilities.
This is why you should hire an accountant. An accountant ensures accurate tax filings and helps you identify ways to minimize liabilities. The accountant also offers support and reassurance that everything is done right – giving you peace of mind. Support from an accountant also becomes essential if your business is going through financial changes like mergers, expansions, takeovers, or acquisitions.
Besides, by having an accountant or bookkeeper, you will be able to handle the IRS seamlessly, stay organized, and receive all your deductions.
4. Regulatory Compliance
A primary responsibility of the bookkeeper is to help you avoid audits. Audits can happen for several reasons, including tax law changes, form mistakes, errors in charitable deductions, and more. Having an accountant can help you in the event of an audit.
The accountant will have all the information available for the IRS and will be able to communicate it in a language the IRS understands. The accountant can also help expedite regulatory compliance and save you from unnecessary hassles. They can also help you stay updated with changing tax laws and financial regulations.
5. Less Worries
As a business owner, there are several things constantly vying for your attention. You might find it difficult to focus on everything. Outsourcing accounting services can take this worry off your daily routine – helping you dedicate more attention and energy to other core business verticals.
When you hire remote staff to take care of various financial tasks, you will feel less burdened. Accountants and bookkeepers can handle payroll, pay and send invoices, and track sales. They are the perfect solution for small businesses, as they allow you to focus your limited resources on core areas.
Final Words
Finance is the lifeblood of every business. Hence, having the right tools and personnel to handle finance is essential. In this context, it is important to understand that accounting software and tools are valuable for managing daily financial tasks. However, they cannot replace the expertise and strategic guidance that a professional accountant brings to the table – essential for your business’s success.
Outsourcing accounting services through Remote Resource offers a cost-effective way to access top talent, allowing you to focus on what you do best growing your business. Remote Resource lets you hire top talent in different domains, ranging from virtual assistants to finance professionals, at a fraction of local hiring costs. We give you the flexibility to hire full-time or part-time resources as per your needs. Moreover, you can scale as required and save on overhead expenses through this process.
