Wednesday, 20 May 2015 07:21

Can Cloud Accounting & Bookkeeping Programs Replace Bookkeepers

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The popularity of cloud bookkeeping programs such as XERO, SAASU, MYOB essentials, Sage One etc. in today’s world continues to increase as updates are made everyday in order to make it more reliable, quick and user-friendly. Despite its advantages, however, like everything, cloud programs also have their limitations that restrict it from deriving an accurate, complete and reliable result that a bookkeeper can provide.  

What exactly drives small business owners to think bookkeepers can be replaced by cloud programs?

Cloud programs are used commonly to store data on virtual servers instead of a PC making it accessible almost any place from which you can an internet connection.  Not only that, due to such software being available on a subscription basis, it saves business owners the upfront cost involved in purchasing the software outright and installing it on a desktop where its accessibility is limited. These are some of the most common reasons why small business owners choose to switch to cloud programs.

Due to the automation, availability of live bank feeds and real time data, lot of business owners assume they don’t need a bookkeeper anymore.

Can Xero replace bookkeepers?Xero Limitations


My answer is NO!

In spite of the ease of accessibility and cost benefits, other factors also need to be taken into consideration when doing business bookkeeping. Bookkeeping requires precision and accuracy and dealing with complexities of the business transactions such as complex payroll transactions, year-end processes, import GST transactions etc.

Bookkeepers can perform complex the transactions, oversee data and systems or recognise an oversight which a cloud program like Xero can’t do.

I regularly come across business owner who let go of their bookkeeper as they use Xero now and they think they don’t need a bookkeeper. Very often while reviewing their accounts, we can find numerous errors in postings, mix up between balance sheet and profit and loss items etc.

A bookkeeping system like Xero or any other is a means not an end in itself, you still need qualified and experienced bookkeeper who can process the information accurately.


A bookkeeping program cannot replace a bookkeeper, yes an efficient cloud program can reduce the time required for bookkeeping, however in no way it is a bookkeeper in itself.

Got any more question how you can use a cloud program best for your business bookkeeping? Give HS Bookkeeping Service a call today on 1300 664 796 to get the answers.

Read 1949 times Last modified on Wednesday, 27 May 2015 03:13

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