Gone are the days when you have to manually record your business transactions on a journal or ledger book. Even spreadsheets have become a thing of the past unless you want to stay low, you have too much time to spare, or there are just too few transactions to record.
Unless you intentionally want to challenge yourself by doing it the hard way, you don’t want to be buried by transaction backlogs, do you? If you want to consider making your life easier and focus on more important things, here are just a few reasons to try accounting software for small businesses:
To Save on Cost
Businesses, regardless of their size, are established to gain profit, and there are basically two ways to achieve this: by maximizing revenues and minimizing costs. Software for small business accounting helps you achieve the latter.
If you are paying a bookkeeper per hour to record every aspect of your business, your salary expenses could have significant adverse effects on your business. As you know, a manual recording could take hours to accomplish, depending on the volume of transactions. This leads us to reason number two below.
To Save Time
As mentioned, another factor to consider in minimizing your costs is saving as much time as possible. As previously pointed out, why spend on personnel or professionals to do things for you for a significantly longer period when you can get things done with just a few clicks? Nowadays, automating your business is the way to go!
Another point to consider is the urgency of the results needed. Manpower has its limitations in terms of productivity regardless of your willingness to pay.
And let’s face it: businessmen are always on the go. Even entrepreneurs of small startup businesses can be preoccupied with how to optimally run a business. Marketing your business’ products and services would be most likely be your top priority at the moment—not plowing through a pile of paperwork every day and recording them.
To Sort Out and Track Income and Expenses
Claim up to $26,000 per W2 Employee
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- This is not a loan. These tax credits do not need to be repaid
Unless you are an accounting professional yourself, you won’t enjoy this part of your business: manually recording your daily transactions. You’ll gladly designate bookkeeping to someone else—or better yet, you can get a bookkeeping software.
Accounting programs nowadays are so advanced and sophisticated that even capturing and storing images of all the receipts and invoices is possible. So say goodbye to those piles of papers in your office filing cabinets.
To Provide the Status of Finances at Any Given Time
In manual bookkeeping, you would most likely track your financial position on a monthly, quarterly, and yearly basis. Wanting to see it in real-time would seem like a tedious task.
With the use of accounting software, you can get your data in real-time with just a few clicks.
To be able to Identify the Strengths and Weaknesses of the Business
Free accounting software like Wave have the capability to generate reports whenever you need it. Know your outstanding obligations, your receivables, inventory, and even the current value of your assets instantly.
By being able to generate these reports at the soonest possible time, you can promptly act on any issues that could affect the smooth flow of your operations.
To Get Accurate Results
“To err is human, to forgive is divine”—or so they say. However, while you can forgive yourself or your bookkeeper for minute errors that may potentially affect your business standing, revenue and tax agencies can be relentless.
Doing bookkeeping manually may result in misrecording, Excel formula errors, and the like. Accounting software not only stores your business transactions, but they do the calculations for you in an accurate manner.
To Secure Your Records
How would you like to protect your business’ records? With accounting software, you get an extra layer of protection through password-protected storage.
What’s more, most accounting software can be cloud-based. Laptops and PCs can be stolen or destroyed. By having the option for online backup, you can rest easy that if something happened to your records, you can always retrieve them and start where you left off.
There can be a plethora of excellent accounting software that could provide you with the services that you need. Most can even be customized to suit your specific requirements.
If you are a small and upcoming business, testing the waters first can be a good idea. Free software can be as useful as their paid counterparts, especially for firms with fewer transactions and those that don’t maintain inventories like service providers.
While wanting to stay in your comfort zone is not a bad thing, dipping your toes in the waters of technology from time to time never hurts. You might even realize that it’s perfect for your business and that you can focus more on the things that really matter.