QuickBooks and other similar accounting software vendors spend millions on trying to convince business owners like you that their software is super simple (and the best).
This new online way of doing things is a lot easier compared to the old clunky accounting software of the past – but that does that mean you can do away with accountants completely if you use QuickBooks?
We admit, bookkeeping is simple, but it is not easy.
Do I need an accountant if I use QuickBooks? Most small businesses will benefit from having an accountant even if they use QuickBooks. Working with an accountant has many benefits as they bring years of experience and knowledge to your business allowing you time to concentrate on what you do best.
The average small business spends 15 hours per week doing bookkeeping. Whilst you can use QuickBooks for a limited company, you could be using those hours more productively in your business… without the risk of making accounting mistakes.
Whilst it’s not a legal requirement to use an accountant, a time may come when you do need to think about the expertise and knowledge they will bring with them.
Getting this wrong could prove costly from a financial and time point of view. Running a business is a stressful time for you. Do you need to compound that by trying to learn the rules and nuances of not just how to use QuickBooks, but also law relating to accounts just to save a few pounds?
It’s a false economy in the long run.
QuickBooks or any other bookkeeping software to the best of my knowledge cannot replicate this. Even if it could how could you trust and rely on something you may not understand?
At best you might get some numbers wrong. At worst, you could end up being investigated by HMRC if you use QuickBooks to submit false information, even unintentionally.
We are pretty sure you did not set up a business to become a part time bookkeeper or accountant which can very quickly become a reality. The average micro-business spends 15 hours per week or 19% of their time doing financial admin tasks.
You should consider hiring an accountant if you need help with your statutory accounts, corporation tax, VAT, payroll, and self-assessment.
There are several things to consider, all of which we’ve outlined for you below.
How does QuickBooks work?
QuickBooks is an online accounting/bookkeeping software system designed for small businesses to make the process of bookkeeping and financial management for your small business as efficient as possible.
QuickBooks can connect to your online banking, refreshing every day, to help you keep on top of your income and expenditure. You can easily identify who owes you money and who you owe money.
QuickBooks essentially becomes your online version of any manual accounting and bookkeeping records you have been keeping. Having a system that manages the sales ledger, purchase ledger, payroll, VAT, bank, and reporting in one system will help you keep track of the financial health of your business.
QuickBooks will help you keep on top of your statutory and regulatory responsibilities as it can calculate your PAYE and NI on payroll and submit VAT returns. Whilst QuickBooks can do these tasks on your behalf as the business owner you are still legally responsible for them.
As QuickBooks online is online it is accessible 24/7 if you have an internet connection. No more waiting for accounts to compile and distribute reports.
Do I need QuickBooks for my small business?
You might need QuickBooks for your small business given the how the introduction of Making Tax Digital by the government is almost forcing the hand of small business owners to make the move to an online bookkeeping system. You will need to submit digital returns.
QuickBooks can help you with that.
Whether you need an accountant if you use QuickBooks will be up to you though…
You do not have to use QuickBooks for these submissions there are plenty of other software solutions out there and there are some that will act as bridging software to convert your Excel records into digital format should you prefer to continue working in that way.
There is a lot to be said for using QuickBooks or another digital system, we have listed some of the major features below, this may assist you in deciding whether you need QuickBooks.
QuickBooks Features
| Invoicing | Payroll | Bank integrations |
| HMRC self-assessment | Time tracking | Expenses |
| VAT | CIS | Mileage |
| Cash flow insights | Tax calculations | Inventory |
| Scan receipts | Accept online payments | Telephone support |
- VAT peace of mind – QuickBooks will automatically sort and calculate your VAT, submitting your tax return directly to HMRC. Set up reminders so you always know what tax you owe and when its due. QuickBooks error checking software will highlight any potential errors before you submit, for complete peace of mind.
- Payroll simplicity – with QuickBooks you can streamline your payroll with auto-mated pay runs, pension auto-enrolment and auto-file with HMRC.
- Financial clarity – stay on top of your finance with the compete picture. Connect to your bank and run real-time reports to track payments and forecast cash flow. Customer reporting ensures you have the right data to make those important decisions.
Can you use QuickBooks for a limited company?
Yes, you can use QuickBooks for a limited company in fact there is even a different price point for limited companies and sole traders based on the complexity and filing requirements of the two types of business.
QuickBooks has a default Chart of Account that means you have the right account codes to use for your limited company. As an example, you may pay dividends to shareholders rather than drawings if you were a sole trader and QuickBooks caters for that.
As a limited company, you’re liable to pay corporation tax on your profits, pay VAT and PAYE and National Insurance contributions to HMRC. QuickBooks can help you collect all the data you need and prepare the relevant calculations.
Handy Hint: Here’s how much you can expect to pay for the services of an accountant as a small business owner.
Do I need an accountant if I use QuickBooks?
If you are using a piece of cloud accounting software such as QuickBooks or Xero, you could be fooled into thinking that submitting a VAT return is as simple as clicking a button.
Well, you would be right. Any fool can click a button on software solutions and submit a VAT return to HMRC. That is where the real fun can begin.
With over 11,500 pages of tax legislation governing the UK tax system and the Companies Act split into 47 Parts with the Contents page alone running to 59 pages that is why you need an accountant.
Accountants spend years learning their trade and become qualified professionals. To retain their professional qualification, they must also complete a number of hours Continued Professional Development (CPD) each year to ensure they are keeping up with the changing business and tax legislation.
Do you have time to do that on top of running a small business? Even if you did, you wouldn’t want to. If you are still not convinced, we have listed some of the top reasons why you need an accountant:
- Saves you time
- Save you money
- Accountability
- Support and advice
- Improve cash flow
- Remove worry
- Reliable management information
- Tax estimates
- Planning, forecasting and budgeting
- Best practice
How much is QuickBooks?
We think it is fair to say that QuickBooks is priced to grab you in. With 90% discounts offered for the first 3 months the pricing is very appealing. The logic being that once you have spent 3 months getting to grips with new software, putting your data in and perhaps changing processes and workflows you are unlikely to move on soon.
There are different price brackets for sole trader business and limited companies.
Limited companies can start from as little as £1.20 a month for the first 3 months rising to £12 a month thereafter. This can rise to £32 a month at the top end before you start adding payroll so be aware of what you need before signing up and what the longer-term cost will be.
Sole Traders from as little as £0.80 a month for the first 3 months rising to £8 a month thereafter.
With so many different options and price points available we would recommend you check out the QuickBooks pricing page to find the right price for your business.
Researching, selecting, testing, and implementing accountancy software into any small business is not exactly top of the list of priorities and not one reviewed on a regular basis. Once it is in then ‘it’ll do’ attitude soon takes over especially if it is an improvement on your current setup.
If you work with a QuickBooks accounting partner, you may find it cheaper than purchasing direct from QuickBooks. Some accountants will not even charge for the software if you use their services due to the perceived time savings, they gain by you completing the records digitally versus manually. Ask you accountant first before making a purchase.
Prices and information were correct at 3rd July 2022.
Do I need an accountant if I use Xero?
If you are using a piece of cloud accounting software such as Xero or QuickBooks, you could be fooled into thinking that submitting a VAT return is as simple as clicking a button.
Well, you would be right. Any fool can click a button on software solutions and submit a VAT return to HMRC. That is where the real fun can begin.
With over 11,500 pages of tax legislation governing the UK tax system and the Companies Act split into 47 Parts with the Contents page alone running to 59 pages that is why you need an accountant.
Accountants spend years learning their trade and become qualified professionals. To retain their professional qualification, they must also complete several hours Continued Professional Development (CPD) each year to ensure they are keeping up with the changing business and tax legislation.
Do you have time to do that on top of running a small business? Even if you did, you wouldn’t want to. If you are still not convinced, we have listed some of the top reasons why you need an accountant.
Can Xero do that?
Whilst we are not knocking Xero or any other accounting software provider for that matter, we need to recognise that they are simply a repository for your accounting records. Xero does not replace the work an accountant does or what they can bring to your business.
Using Xero may hinder your accountant as much as help them. We have all heard the adage of rubbish in, rubbish out, well that is never truer than someone let loose on their own bookkeeping.
Frequently asked questions on do I need an accountant if I use QuickBooks
Is QuickBooks bookkeeping or accounting?
Bookkeeping helps you manage your financial books by documenting transactions, managing accounts, reconciling the bank accounts, and recording financial data such as sales invoices and bills.
Accounting helps make sense of that financial data by interpreting it and helping small business owners make sense of the numbers. Accountants can only do there thing on good quality data prepared by solid bookkeeping.
The roles and responsibilities of bookkeeping and accounting are different. QuickBooks can help with both. As with all good software solutions in the finance space the tool that you use should enable both parties to work seamlessly together.
QuickBooks is both bookkeeping and accounting software.
Whilst accountants may not use QuickBooks for compiling and filing year end statutory accounts and tax there is enough information and reporting within the core product to review financial information, create forecasts and analysis to aid business owners to make decisions.
How do I use QuickBooks as an accountant?
If you wish to know how to use QuickBooks as an accountant, then there is no better place to start than by becoming a certified partner.
QuickBooks can help you get more from the software, boost your skills, and grow your practice. There are several certification courses and webinars.
By joining the ProAdvisor Programme you can enjoy:
- Marketing tools
- Client analysis tools
- Free licence for your practice
- Discounts for clients up to 60%
- Discounts on DocuSign
- Dedicated account manager
- Priority phone support
- Training
Do most accountants use QuickBooks?
In the UK there are over 125 HMRC Making Tax Digital certified accounting solutions. As you would expect there are some big players in amongst those 125 options such as Xero, QuickBooks, FreeAgent, Sage to mention but a few.
QuickBooks is the biggest player in the US market for the small accounting practice. In the UK it is fair to say that Xero has the largest market share with over 1 million subscribers in the UK. With businesses operating in the UK being around 6 million that is a large share of the market.
It is difficult to know with any certainty which software solution accountants are using. Xero published figures on this but stopped several years ago so there is little visibility over which is the software choice of the accountants. On Xero’s website they reference over 100,000 accounting partners but we have no visibility over UK specific numbers.
What we can say is that we are seeing a move in the market away from a one size fits all approach. Accountants are less likely to put all their eggs in one basket and more likely to find the right software solution to fit the client’s needs.
Is QuickBooks as good as an accountant?
To answer the question of whether QuickBooks is as good as an accountant if you use QuickBooks, we need to unpick what it is that an accountant does for a small business.
We have listed some of the top reasons why you need an accountant:
- Saves you time
- Save you money
- Accountability
- Support and advice
- Improve cash flow
- Remove worry
- Reliable management information
- Tax estimates
- Planning, forecasting, and budgeting
- Best practice
Can QuickBooks do that?
Whilst we are not knocking QuickBooks or any other accounting software provider for that matter, we need to recognise that they are simply a repository for your accounting records. QuickBooks does not replace the work an accountant does or what they can bring to your business.
Using QuickBooks may hinder your accountant as much as help them. We have all heard the adage of rubbish in, rubbish out, well that is never truer than someone let loose on their own bookkeeping.
Conclusion
With over 11,500 pages of tax legislation governing the UK tax system and the Companies Act split into 47 Parts with the Contents page alone running to 59 pages that is why you need an accountant. QuickBooks or any other bookkeeping software for that matter has not yet been able to interpret and build that into their product.
Accountants spend years learning their trade and become qualified professionals. To retain their professional qualification, they must also complete a number of hours Continued Professional Development (CPD) each year to ensure they are keeping up with the changing business and tax legislation.
Do you need an accountant if you use QuickBooks?
No.
No.
Not having an accountant working with your business could mean you make mistakes which could cost you time and money which could have been avoided. There is a tendency when running a small business that you want to do things yourself and save the cost but what is the costs in the long run to your business of making mistakes?
A good accountant should be viewed as an investment to the business not a cost. Any good accountant should save you more money than they cost even if that just equates to the time, they save you from doing things yourself.
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Jon has been in business since 1999, and in that time worked with more than 300 small business clients. As well as being an accountant, he is also an early adopter of tech, and has helped small businesses to leverage the power of their computer systems by creating software to automate and simplify accounting tasks.
