Do You Need An Accountant If You Use Xero or Quickbooks

The question has been asked many times before: Will tools like Xero, Quickbooks, FreeAgent, Sage—or any of the other accounting software tools out there—finally replace your accountant?

It's a valid question. And, in fact, many bookkeepers and accountants probably felt the "pinch" in their pockets as a result of some of these tools before they discovered their value to their businesses.

Long gone are the days of a solo entrepreneur who sticks all their receipts in a shoebox and then, once a year (or once every quarter if they are VAT registered), they call their accountant and say, "Help! My file is a mess. ”

How are tools like Xero, QuickBooks, and FreeAgent actually working?

Bookkeeping is an act of noting one's income and expenditure in books—or "books." The most popular system to do this is the "Double Ledger" system, which requires that every debit in the ledger be followed by a credit entry in the corresponding ledger.

So, for example, if you buy a new computer, your cash is debited for, say, 500 pounds, but your assets are credited for 500 pounds.

Accounting, on the other hand, takes these "books" and prepares sophisticated and detailed reports for them:

  • Statements on P&L (profit and loss)
  • Balance of Sheets
  • Ancient creditors
  • Ancient Debtors


Is Xero, Quickbooks or FreeAgent going to replace accountants?

Well, first of all, accountants use these tools as well! The creators of Xero, Quickbooks, Sage, Cashflow and any of the other accounting software tools around the world have not only made these tools for end-users, but also for accountants.

Each of the above tools has an "Accountant" version or provides a special login for your accountant to come in and check your books.

Just as these tools save time for people, they also save huge amounts of time for accountants and accountants! Now, accountants and accountants can serve, probably, a hundred clients when they could serve only twelve or so clients in the same amount of time.

Technology is helping everyone.

Accountants are specialists in their fields of activity. They also need to keep up-to-date with the latest legal developments in HMRC regulations, such as the requirement to make tax digital, forcing all businesses to submit their VAT returns online.

Well, do you need an accountant or don't you?

So, do you need an accountant if you use Xero, Quickbooks, or any other tool for your VAT returns, tax returns and accounting?

A similar question might be whether you need a mechanic you can always go to when your car breaks down, or a designer when your website needs an upgrade.

Just as technology has made everyone more efficient, so accountants have become more efficient. And there are numerous packages for every budget that accountants are now able to offer as a result of the rise in technology.

So It's always a good idea to hire efficient cheap accountants in London to manage your VAT, bookkeeping, Qucikbooks etc.

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