If you own your own business or if you’re simply trying to keep your financial house in better shape, you might resort to using an accounting system. While accounting systems can prove invaluable, you may be wondering whether or not you, your business and your finances could be doing a lot better if a certified accountant were operating your accounting system. Take a look at some of the advantages and disadvantages of using an accounting system by yourself.
Cost
You might think that you’re saving money by using your own accounting system, but they can cost just as much as the professional services of an accountant. Not only do you have to buy the actual accounting software, there might be licenses that you have to buy if there will be several individuals operating the software or if you need the software on several different computers. There might also be upgrades or updates that you could need for your specific purposes, which will more than likely cost extra. If your current computer doesn’t support the accounting software that you require, you might have have to update that as well.
If an accountant is operating your system, they might be able to take care of your accounting needs without licenses or updates. They could already have the software on their computer, which means there’s a chance that you don’t have to upgrade yours.
Computer Reliance
If you happen to accidentally download a virus on your computer, or if your hard drive crashes, you’ll be unable to use your accounting software until you’re back up and running. If you’re a business owner, being without your system for even a day can be catastrophic. Not only will you not be able to put in new numbers and information, you won’t be able to access your old numbers and information either.
If an accountant is operating your software, or if they’re simply handling your finances, it won’t be as big of an issue if you ever have computer problems since you can just ask them to pull up any information that you need.
Fraud
Most accounting software calls for increased security to combat instances of embezzlement and fraud. The reason for this is that account software makes it easier for individuals and business owners to alter their financial data. Something else to think about is the fact that individuals and business owners who use accounting data will be under more scrutiny from internal auditors who are checking for inaccuracies in financial data.
We talked with Yudichak CPA about this very subject. They said, “By having an accountant operate your accounting software, there could be less of a chance of you being audited when tax time rolls around. An accountant can keep you from making mistakes that might otherwise act as red flags to auditors if you aren’t aware that you made a mistake in the first place.”
Simple Human Error
Should you ever write down a single incorrect number, it can prove disastrous, especially if it’s a mistake that you don’t notice until it’s too late to do anything about it. It’s easy to become too comfortable using accounting software and even easier to trust that the software will fix all of your mistakes for you. If you allow an accountant to operate your software there’s less chance of their being a mistake. Even if your accountant does make a mistake, they’re more than likely to know exactly how to remedy the situation and what you should do next.
Accounting systems are a wonderful thing to have for your business and personal use, but they’re the most effective in the right hands. If you truly feel that you don’t need an accountant to operate your software for you, it’s a good idea to at least have an accountant look over your numbers and data every now and then to make sure you’re doing everything correctly and to the benefit of your business.
Visit the AICPA website to find a Certified Public Accountant in your area.
