Is Xero replacing accountants?

 

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Regardless of your business’ size, Xero can save valuable time and money when it comes to bookkeeping and accounting. It’s a powerful piece of accounting software that was developed here in New Zealand. But, with all its features and capabilities, does it make the role of accountants redundant?

The advantages it offers make it an incredibly useful tool for business owners around the world, and we’ve detailed its capabilities in a previous blog post that you can find here. But, as is the case with most tools, the end result (balanced books and up-to-date accounts in this instance) is only achievable when the operator knows exactly what they’re doing and how to get the most from it.  

You could think of it the way an arborist tackles a huge tree. Most people would say they’re comfortable using a chainsaw after a few minutes practice, and after a couple of small branches they may feel confident to try take down something larger. But when it comes to hoisting yourself up a 10 metre pine and make it fall exactly where it won’t hit anyone’s car or house, you’d likely call in a professional, right?

Although it’s a lot less life-threatening, using an accountant to manage your bookkeeping and accounting, in principle, is no different. Their knowledge of tax laws and obligations of your business allows them to use Xero in a way that identifies savings and helps grow your business. There are a few things they know that Xero can't tell you either. Things like:  

  • Whether an expense can be claimed through the business
  • Whether your books are actually correct or not

  • If you’re falling behind with invoicing and chasing unpaid accounts

  • If you’ve underestimated your tax bill

  • If your returns and compliance paperwork are overdue

With these things in mind, it may be worth considering the help of a qualified accountant to keep your business on track. It also gives you more time to run your business and relax when you aren’t working. Most small business owners take care of their accounts on their days off or over the weekend. But if you’re working on the weekend, does it really count as one?

As Xero experts, we’re no strangers to setting up and managing accounts for clients using the software. We work alongside businesses of all sizes in a number of industries and have been able to create savings and efficiencies that allow our clients to do what they do best. Contact us for more information. 

 

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