Whether you’re a small business owner, a contractor, or a sole trader, it’s important to choose an accounting package that suits you and your needs.
You may need an accountant to take care of your bookkeeping and payroll for you, or maybe you’re just looking for some friendly advice.
Either way, you want to consider all your options before committing to anything, and this includes comparing different quotes to ensure you’re getting the best deal. In this article we’ll explain a few things to consider if you’re trying to decide whether an online accountant or a traditional high-street approach is best for you.
What is the difference between online and traditional accounting?
Nowadays, keeping track of your accounts is easier than ever through online accounting. This often makes the whole process simpler and gives business owners better access to their records.
You can still do your accounts the traditional way though – going to see an accountant in-person on your local high street – and for some people it’s the better choice. It all depends on your specific needs.
Let’s go into a bit more detail to help you understand the key differences between online and traditional accounting.
What is online accounting?
There’s sometimes some confusion between online accounting software, and online accounting services.
The software is just that; it’s accounting software which is hosted online using multiple secure locations, as opposed to being downloaded to a single device. This not only makes data more secure, but also more accessible.
You can update your bookkeeping records anywhere (and on any device) as long as you have the login and an internet connection.
This kind of software deals with record-keeping, so you might still need an accountant even if you use online accounts software.
An online accountant is just like any other type of accountant, but rather than visiting them in-person you can talk to them online, by phone, or with video calls.
How does online compare to traditional accounting?
A traditional (or local) accountant won’t necessarily need to see you in-person, but you’re more likely to have the option to do so. This can be good if you prefer to do things like talk about tax face-to-face.
It might also mean you can just drop off your records and receipts, and they’ll turn this into bookkeeping records and then into a proper set of accounts.
Although at this point it’s worth mentioning that most online accountants offer a bookkeeping service, and lots of high-street accountants will provide you with bookkeeping software. The gap between the two is much narrower these days!
Access to software
This access to online software can be incredibly useful whether you end up with an online accountant or a local one, especially if you need to keep financial records digitally so you can comply with Making Tax Digital requirements.
Without it, you’ll have limited access to your accounts and won’t be able to make changes yourself. Instead, you’re relying on your accountant to get back to you and to send you any reports, which can obviously take a bit of time if they have other clients to look after as well.
Should I choose an online or high-street accountant?
Even with a local accountant, you might find that you don’t need to see them in-person all that often – if at all. Even signing documents and carrying out identity checks can be dealt with online, so the real choice comes down to whether or not you feel more comfortable at least having the option to call in on your accountant if you want to.
It’s a very personal choice!
Before committing to that local firm though, just double-check that they do indeed offer in-person meetings. Lots of traditional sectors are moving to an online-first way of servicing clients.
Tips on finding an accountant
Would you believe that in the UK, literally anyone can call themselves an accountant? Yep, the title isn’t legally protected in the UK. Don’t panic though, because there are ways you can spot legitimate accountants.
Making sure your accountant is appropriately qualified
The easiest way to do this is by looking for specific qualifications.
For example, you could look for a Chartered Certified Accountant (commonly abbreviated as ACCA) or a member of the Institute of Chartered Accountants in England and Wales (ICAEW).
Now, if you’re a freelancer or have recently formed a new company, you’ll probably be more worried about the price than anything else (like experience, level of expertise, etc.)
This is completely understandable, but you still want to make sure the accountant you pick is qualified to do the job and can be trusted with your sensitive information. Otherwise, it could end up costing you more – in the form of fines!
You also want to find the right accountant for you.
Consider whether you’d be fine with a generalist accountant who covers all the bases, or whether you’d benefit from having someone with specialised knowledge. For instance, if you need a landlord or forensic accountant.
Lastly, you can also just check things like reviews and comparison pages to give yourself a better idea.
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.
