Running a sole proprietorship in Belgium means wearing many hats, from sales to marketing to customer service to accounting. Managing finances in particular can be overwhelming. But thanks to advances in technology, help is at hand. There are plenty of accounting tools available that can streamline the process. But is an accounting tool really a replacement for a professional accountant? In this guide, we examine the pros and cons of both options so you can make the best choice for your Belgian sole proprietors.
1. What is an accounting tool?
An accounting tool is a software package or an online service that helps entrepreneurs manage their financial accounts. These tools can help you track income and expenses, prepare invoices, manage debtors and creditors, file vAT declarations, and much more. With an accounting programme, you can keep all financial information from your company in one place and make it accessible.
2. Benefits from accounting software ✅
There are many advantages to using an accounting package for your sole proprietors:
- Efficiency: Accounting tools can automate many of the time-consuming tasks involved in manually managing an accounting system. For example, creating and sending invoices and quotations.
- Accessibility: With online accounting software, you can access your financial data anytime and everywhere.
- Accuracy: Accounting software reduces the risk of errors that can arise from manual data entry.
- Insight: These tools provide real-time insight into your financial situation, allowing you to make better business decisions.
3. Disadvantages of Accounting programs ❌.
However, there are also some disadvantages to using accounting software:
- Internet dependence: If you use an online accounting programme, you are dependent on a stable internet connection.
- Learning curve: It may take some time to learn how to use the software, especially if you have never used an accounting programme before.
Tip:
Fortunately, the accounting tool from Dexxter has been made super accessible. Each concept is clearly explained and the platform is easy to navigate in, so much so that you can get started with your own accounting right away!
4. What does a Bookkeeper do?
A bookkeeper is a professional who specialises in preparing and managing companies’ financial records. A bookkeeper can help you set up and maintain your accounts, file tax returns, advise on taxes and business issues, and much more. Also, be sure to view our blog article on everything you need to know about an accountant.
5. Benefits of hiring a Bookkeeper ✅
Hiring a bookkeeper can have many benefits for your sole proprietor:
- Expert advice: An experienced accountant can give you expert advice based on your specific situation and needs.
- Time savings: Although you have to pay for an accountant’s services, the time saved by not doing your own bookkeeping can outweigh the cost.
- Peace of mind: Hiring a professional can give you peace of mind that your accounts are managed correctly and that you are compliant with all tax laws and regulations.
6. Disadvantages of hiring a Bookkeeper ❌.
However, there are also a few disadvantages of engaging an accountant:
- Cost: Hiring a professional bookkeeper can be expensive, especially for small companies and sole proprietors with limited budgets.
- Less control: While an accountant can take a lot of work off your hands, it also means you have less control over your own accounts.
7. Choosing between an Accounting Program and an Accountant
There are a few important questions to ask yourself when you are hesitating between an accounting tool and an accountant:
1️⃣ How much time do I have?
If you have enough time to do your own bookkeeping and learn how to use an accounting program, an accounting tool can be a good choice. However, if you are already overwhelmed by the demands of your company, hiring an accountant can save you valuable time.
2️⃣ How complex is my financial situation?
If your financial situation is relatively simple, an accounting programme may be sufficient. But if you are dealing with complex tax issues, or if you have employees and need to keep payroll records, an accountant may be a better choice.
3️⃣ What is my budget?
Would you prefer to spend as little as possible, but still be okay with all legal requirements? Through Dexxter’s accounting tool, you’ll pay €180/year. Or are you prepared to spend an average of €900/year on an accountant? Also be sure to view our article on the cost of an accountant so you can already estimate how much it will cost for your specific statute.
Tip:
Try out an accounting programme free of charge, via a 30-day trial period. This way you can test whether the accounting platform is suitable for your sole proprietor!
8. Considerations when selecting an accounting tool ⚖️
If you decide to use an accounting tool, there are some important factors to consider when selecting the right tool:
- Functionality: Make sure the tool offers all the features you need for your accounting needs.
- Ease of use: Choose a tool that is intuitive and easy to use.
- Cost: Compare prices from different tools and make sure you select a tool that fits within your budget.
- Support: Select a tool that offers good customer service and support.
Did you know.
Dexxter has an average score from 4.9/5 on Google Reviews. This is because, as a customer, you can contact both the customer service and the Dexxter community with all your questions!
9. How to choose a bookkeeper
If you decide to hire a bookkeeper, there are a few things to look out for:
- Experience: Make sure the accountant has experience with similar companies like you, so they can answer questions that are specifically characteristic of sector you are enabled in.
- References: Question references and search for reviews from previous or current customers to see what their experiences are.
- Communication: A good accountant should be easy to reach and communicate clearly/timely.
- Cost: Make sure you acknowledge the accountant’s costs and that they fit within your budget.
Not decided yet? View our article on how to choose the right accountant.
10. Combining a bookkeeper and accounting software
Choosing between an accounting tool and an accountant is an important decision that can have a big impact on your company. Most importantly, choose a solution that suits your needs, budget and comfort level with bookkeeping.
Choice stress? You still have the option to choose both. By selecting both an accountant and an accounting programme, you can benefit from the collaboration between human expertise and technological efficiency, which can lead to improved financial control and business success! 🎉
Tip:
You can also use Dexxter’ s accounting platform in combination with supervision from an accountant.
