Should You Hire a Bookkeeper or Use Cloud Accounting?

It does not matter whether you are a small business owner, a freelancer, or managing a large company; at the end of the day, what you need is a clear understanding of your overall income, expenses, and, of course, tax obligations. Now, the question is whether you should hire a bookkeeper or rely on cloud accounting software. To find out the same, read the blog and explore both options.

The Role of a Bookkeeper

A bookkeeper is a person who essentially looks after your day-to-day financial records. His job is to keep track of your sales, payments, receipts, and purchases. He will also make sure your accounts are accurate and up to date, so you know exactly where your business stands.

Pros of Hiring a Bookkeeper

Hiring a bookkeeper has some advantages. If there is anything unusual in your transactions, he can spot it and inform you. He can remind you of the important deadlines. For example, VAT return deadlines, Self-Assessment tax return deadlines, etc. If your business has complex finances or you prefer not to dive deep into numbers, hiring a bookkeeper can prove to be helpful.

The Rise of Cloud Accounting

In recent years, cloud accounting software has become immensely popular in the UK. It enables you to view your finances in real-time from anywhere. Using software means they will automatically pull in bank transactions, match invoices, and even prepare your VAT returns. They also store everything securely and keep backups. So you don’t have to worry about losing your valuable data. However, you still need to know what you are doing, or at least be willing to learn, so that you do not end up making errors while entering your data.

When is a Bookkeeper Best?

You might prefer a bookkeeper if:

•Your business deals with a high volume of transactions.
•You have multiple income streams or operate in several currencies.
•You don’t enjoy dealing with figures and prefer to delegate.
•You want someone to offer tailored advice and spot potential issues early.

When Cloud Accounting Works Well

Cloud accounting could be a better choice if you are tech-savvy and eager to keep your costs low. It will also work well if your business is small or your finances are simple. Nowadays, countless business owners use cloud accounting, but still prefer to hire an experienced accountant for numerous tasks, such as tax planning, HMRC compliance, business advice, and so on.

Try To Find the Right Balance

It doesn’t always have to be one or the other. Some business owners use cloud accounting software and also hire a bookkeeper to have a personal touch. This way, you get the best of both worlds – modern technology with a human eye for detail.

Still, if you are unsure which route to take, start by looking at your budget. Then get in touch with a reputed UK accounting firm. They can help you choose the approach that keeps your books accurate and propels your business.

Lastly, make the time-saving choice, which keeps you compliant and supports your growth.