Accountant vs. Accounting software: what works best for small businesses

Deciding between an accountant and accounting software can be tricky for anyone running a small business, especially sole traders. If you’ve ever searched something like “do I need an accountant or can software handle my books?”, you're in familiar company. Many freelancers, side hustlers, and small business owners face this same question as their finances grow more complex.

Managing business finances on your own can feel overwhelming. You’re logging expenses, chasing payments, and trying to stay on top of tax deadlines, often with tools that aren’t built for how you actually work. Maybe you’ve tested out bookkeeping apps and got stuck. Maybe you’ve considered hiring help but weren’t sure if it made sense for your stage. This guide will walk through your options clearly, using real situations to help you figure out what works.

The importance of accounting in your small business

Accurate accounting keeps your business grounded in reality. It shows you whether your business is actually making money. Without a clear view of your income, expenses, and cash flow, you’re guessing, and that can lead to undercharging, overspending, or missing warning signs until it’s too late.

Good records also protect you. In many countries, tax authorities require small businesses to keep detailed documentation of income and expenses. In the UK, for example, HMRC can fine business owners for missing deadlines or submitting incorrect returns. Even if penalties aren’t on the table, poor bookkeeping can make it harder to secure loans, scale your business, or prove your income.

Clear bookkeeping helps you stay confident, stay out of trouble, and make decisions based on real numbers, not gut feeling.

Who is an accountant?

An accountant is a trained professional who manages your business finances in line with established accounting standards. They organize financial records, prepare reports, ensure tax compliance, and often review or audit your finances. Many are certified and have experience working with individuals, small teams, growing businesses and large corporations.

For independent business owners, accountants can handle a wide range of tasks. They track income and expenses, prepare tax returns, review your financial records, and help set up simple systems to stay organised and often provide personalized guidance on key decisions like pricing, VAT registration, and financial planning for future growth.

Depending on your business needs and growth stage, an accountant may support your day-to-day operations or step in occasionally, such as during tax season or when issues arise. If you’re unsure whether your numbers are accurate or your filings are correct, an accountant can give you the clarity and confidence you need.

What is an accounting software?

Accounting software is a tool that helps you track the money coming in and out of your business. It’s designed to replace spreadsheets, reduce errors, and keep your records organised. Most platforms like Cantant, let you log expenses, send invoices, manage inventory, generate basic reports, and monitor cash flow in one place.

Some accounting software is designed primarily for accounting professionals and may include complex features that solo business owners rarely need. Without a finance background, these tools can feel overwhelming and difficult to navigate. Others like Cantant prioritize simplicity, offering only the essentials you need to manage daily tasks like recording sales, storing receipts, and checking whether you’re making a profit.

Choosing the best accounting software for your business depends on key factors like your business needs, budget, type, growth stage and many more.

What’s the difference between an accountant and accounting software?

Both accountants and accounting software help you manage your business finances, but they do it in different, yet complementary ways. An accounting program is good for tracking daily transactions and staying organised. An accountant steps in when you need expert help, legal compliance, or tailored advice.

If you’re running a small business on a tight budget, accounting software might be all you need. But as your finances become more complex, or if you start to feel unsure about what to do with all the numbers, a combination of software and a human expert can save you time, reduce stress, and help you avoid costly mistakes.

Here’s how they compare:

How to decide if you need an accountant or accounting software 

Even with a clear understanding of how they differ, there are a number of scenarios where business owners wonder if they need an accountant or an accounting software. Here are some scenarios where one works better than the other:

Advantages of hiring an accountant

• Expertise: bringing a trained and certified accountant on board ensures your finances are managed with precision. Their professional knowledge can help you avoid costly errors and stay compliant with regulations.

• Time-saving: delegating your accounting tasks to an expert frees up valuable time, allowing you to focus on growing your business and making strategic decisions rather than getting caught up in financial admin.

• Accurate financial planning: accountants understand how to properly track income, expenses, deductions, and tax obligations. Their insight ensures your books are not only accurate but optimized for future financial planning and decision-making.

• Risk mitigation: a professional accountant helps you avoid financial pitfalls, tax penalties, and compliance issues by staying on top of ever-changing laws and regulations. This significantly reduces the risk of audits or legal complications.

• Personalized financial advice: unlike accounting programs or templates, accountants offer tailored advice based on your business model, industry, and goals, helping you make more informed financial choices.

• Custom-tailored financial strategies: from budgeting and forecasting to tax planning and investment guidance, a professional accountant builds strategies that align with your business’s unique needs and growth trajectory.

Disadvantages of hiring an accountant

• High cost: professional accountants can be expensive, especially for small businesses. Fees often range from tens of thousands of dollars per year, depending on the complexity of your needs and their level of expertise.

• Human error: despite their training, accountants are not immune to mistakes, especially if they’re overworked, under-briefed, or working from incomplete data.

• Overdependence: relying too heavily on your accountant for every financial decision can prevent you from developing a solid understanding of your own finances, leaving you vulnerable if the accountant becomes unavailable or exits the relationship.

• Overspecialization: some accountants focus narrowly on tax or compliance, which means they may not offer holistic financial advice or strategic insights your business needs unless specifically trained or experienced in those areas.

• Limited availability: especially during peak periods like tax season, accountants can be slow to respond or may prioritize larger clients. This can lead to delays in getting critical information or advice when you need it most.

• Needs consistent input from you: accountants work with the information you provide. If your records are disorganized or incomplete, it can slow down their work, increase your costs, and reduce accuracy.

• Reduced financial visibility: when you delegate everything without oversight, you risk losing touch with your financial health. This lack of visibility can make it harder to make informed decisions quickly.

Advantages of using accounting software

• Cost savings: most accounting platforms offer affordable monthly plans making them a practical choice for startups and small businesses. One of the most affordable ones

• Automation of repetitive tasks: software automates key processes such as expense tracking, invoicing, bank reconciliation, and tax calculations, reducing manual effort and the risk of errors.

• Real-time data and insights: access up-to-date financial information instantly, helping you monitor cash flow, income, and expenses as they happen.

• Improved accuracy: built-in error detection, automatic calculations, and standardized processes ensure more accurate recordkeeping than manual methods.

• Easy accessibility: cloud-based tools allow you to access your financial data anytime, anywhere, and from any device.

• Time-saving: automating routine tasks saves significant time, allowing business owners to focus on strategic areas of their business.

• Full control and oversight: provides transparency and control over your finances without needing to rely entirely on a third party. You can see your numbers whenever you need them.

• Scalable as you grow: most platforms offer features that grow with your business, such as inventory tracking, payroll integration, multi-user access, and advanced reporting.

• Centralized recordkeeping: keeps all your financial data organized in one place, eliminating the need for scattered spreadsheets, paper receipts, or email chains.

• Supports day-to-day financial management: helps you stay on top of daily operations like tracking expenses, managing budgets, and maintaining accurate records for reporting and decision-making.

Disadvantages of using accounting software

• Learning curve: some platforms are designed with accountants in mind, making them less intuitive for small business owners or those without a financial background.

• Glitches and technical issues: like any technology, accounting software can experience bugs, downtime, or syncing errors that disrupt workflow or compromise data accuracy.

• Limited personalization: software tends to follow standard processes and templates, offering minimal flexibility for businesses with unique or complex financial needs.

• Can't replace professional expertise: while useful for day-to-day tasks, software can't help with nuanced matters like tax strategy, audits, regulatory compliance, or long-term financial planning.

• Requires ongoing discipline: to be effective, the software depends on regular, accurate data entry. Inconsistent use can quickly lead to inaccurate records and financial blind spots.

Accountant vs accounting software: using the right balance of both

As Henry Ford once said, “A man with a machine is better than a man without one.” In most cases, this holds true. Tools amplify human ability. The same principle applies to managing business finances: accounting software should not replace human effort but complement it. By combining human judgment with automation, you get the best of both worlds—speed, accuracy, and strategic insight.

Think of software as your financial dashboard. It keeps you organised and ready. The accountant steps in when decisions carry more weight e.g. tax season, growth planning, or when things go wrong.

This balance works because it plays to the strengths of both sides. Software gives you consistency. A human gives you context.

The cost of not having accounting software

While it’s true that accounting software helps you save money, that’s actually the smallest benefit it offers. The real value goes far beyond cost savings.

Without accounting software, your business risks:

• Falling behind on finances due to lack of structure or real-time tracking

• Missing critical deadlines like tax filings, invoicing, or payroll

• Making poor decisions based on outdated or incomplete data

• Wasting time juggling spreadsheets, receipts, and manual processes

• Losing important financial and inventory data due to disorganization or poor backups

• Facing compliance issues from inaccurate records or late submissions

• Lacking visibility and control over cash flow, profitability, and expenses

While you may still be unsure whether you need an accountant, one thing is certain: you need accounting software. It's a necessity for any small business that wants to stay organized, informed, and prepared to grow.

Choosing the right accounting software? Choose Cantant

If you're looking for accounting software that is perfect for your business, Cantant is built for you. It is designed specifically for small and midsize business owners who want clarity and control over their finances without the complexity and overwhelm that comes with other accounting tools like Quickbooks and NetSuite.

Here are some of the features you enjoy on Cantant for as low as $10 a month or $78 a year:

• Unlimited invoicing

• Inventory management

• Financial planning and budgeting

• Manage & compare up to 3 businesses

• Add up to 7 users and approve activity

• Know your best day and time to sell

• Know your best selling products by revenue and profit

• Know your top customers

• Over 10 simplified business performance reports

• Over 20 advanced tools (e.g. pricing calculator, project manager, etc.)

Cantant gives you what you need to stay on top of your money without turning it into a second job. If you’re ready to switch from guesswork to clarity, start your 14-day free trial now.