Accountant or accounting software: the real cost

In short: software costs less to buy, but the real cost is measured in time spent and the risk of error. For a simple case, software may suffice; as soon as things become more complex, an accountant often recoups their investment through tax savings and errors avoided.

"Why pay an accountant when software costs a few dollars a month?" That's a good question, and the honest answer depends on your situation. Let's really compare, beyond just the subscription price.

How much accounting software costs

Accounting software typically costs between a few dozen and a hundred euros per month. That seems inexpensive on paper. But the software doesn't do the work for you: it gives you a tool. The real cost lies in everything else.

• The time you spend capturing, categorizing, comparing, and producing your statements.
• The learning curve : taxes, spending categories, end of year.
• The risk of error : a wrong VAT return, a forgotten deduction, and the bill climbs.

The time you spend on your numbers is time you're not spending on your business.

What an accountant costs, and what they bring in

An accountant for a small or medium-sized enterprise (SME) in Quebec costs on median approximately $2,000 per year, ranging from $500 to $6,000 depending on the sector (see the Bankeo Barometer ). In return, they save you:

• time , which it gives back to your activity;
• taxes , through deductions and optimizations that you are not aware of;
• Peace of mind, because your declarations are made correctly and on time.

For many entrepreneurs, these savings outweigh the fees. Therefore, the accountant's services are not compared to the price of the software, but to its net return.

The right choice depending on your situation

There is no single answer. Here are a few guidelines:

• Very simple case, few transactions, comfortable with numbers : software may suffice, at least at the beginning.
• Increased volume, incorporation, multiple revenue streams, taxes : an accountant quickly becomes profitable.
• A common solution : software for day-to-day tasks, plus an accountant for year-end management, taxes, and advice. The best of both worlds.

The important thing is not to confuse "cheaper to buy" with "cheaper overall".

How to decide without making a mistake?

If you're unsure, the easiest thing to do is talk to a professional who can assess your specific situation. Bankeo will introduce you to an accountant, free of charge, who is suited to your industry and budget and has already been vetted for the essentials (see the Bankeo Index ). You can then make an informed decision and agree on a price directly with them.

Not sure if you need an accountant? Talk to Bankeo for free.

In summary

• Software costs less to buy; its true cost is measured in time and risk of error.
• An accountant compares himself to what he brings in (time and taxes saved), and not to the price of a subscription.
• Simple cases: the software may suffice. As soon as things get more complex: the accountant's services become more cost-effective. Price benchmarks: the Bankeo Barometer .