What Does Accounting Software Actually Mean for Small Businesses?

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In the modern world, the reason that technology has completely amalgamated is due to the fact that it has brought convenience in all business industries. In every organization, either big or small, the presence of accounting system acts critically in book keeping. Therefore, there are different sorts of accounting software which are specially created in accordance with the size of the business. In older days, only big businesses used to perform accounting activities by the use of accounting software but today even small businesses are engaged to use the accounting software.

Accounting software has revolutionized the financial systems of small businesses. Some of the reasons are stated below:

  • The advantage of using accounting software in small businesses is to keep a check on the financial information of the business. The information is easily accessible, secured and sorted out in a particular manner. For instance, if the accountant needs to find out the payment of a bill, then it will be much easier to track every single detail in regard of the transaction. Likewise, if one loses a receipt, the important data or the information is still manageable. Initially, paper recording created a menace for small businesses. But with the accounting software, the receipts can be made effortlessly. Rather than flipping one paper after the other, one can search for data that is secured in an efficient manner.
  • Accounting software specifically designed for small businesses offers numerous focal points over manual frameworks. The software executes all capacities that a manual framework does, yet records and accounts are maintained automatically and the procedure is speedier. For example, with the manual record keeping system, it is difficult to maintain records and it is quite time consuming. By using the accounting software, the record maintenance saves a lot more time.

  • Numerous small business accounting systems are perfect with other programming and projects which are used with the particular business. By coordinating the current accounting software with alternate parts of the business can save money and time. For instance, numerous online organizations can coordinate the internet shopping basket with the accounting software to consequently issue receipts and accommodate the deals from the site.

  • Another point of preference for small business owners to utilize accounting software is the ease of projects. Fundamentally, this can be exceptionally reasonable and of incredible worth. Costs for preparing ought to likewise be considered, however they are generally reasonable for small business entrepreneurs.

  • New components and upgrades are regularly released for your existing software or new accounting software is developed and produces. It is really important to staying up to date with your accounting software to guarantee the business process run smoothly and accurate records are kept. Accounting software developed for small business may offer extended components your business can utilize to save money, save time, and support deals – all this just the tip of the iceberg.

Five Reasons to Use Accounting Software

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Technology is one of the wonders of science. It has made our lives easier and enables us to complete lengthy processes and documents in the blink of an eye. So, why not use it with the most sensitive data of a company i.e. the Accounts department?

Hence, it is time to bring about an important change to your business operations for this year and switch to computerized accounting software. If you use a manual accounting system, in Excel or on paper, you are wasting precious time suited to more productive work and even putting your company at risk.

A survey recently carried out by Sage, of 700 small business owners who do not use accounting software, found out that they are more likely to have problems with accounts payables, accounts receivables, and invoicing than business owners who utilize computerized accounting. “The old methods of spreadsheets and manual pen and paper is often a “complete and utter disaster, " was said by Shaquela Tracy, CPA, from the Chicago accounting firm, The Meekins Group.

Following are five reasons to convince you to use accounting software for your small business:


1. Efficiency

Using a software accounting system will save lots of time that would have been spent on boring, time consuming calculations. After learning the basics, it takes no time at all to run reports for taxes or to look at past transactions.

2. Accuracy

Using a computerized system leads to fewer mistakes. You can make sure all entries are correct and record every expense item, as almost all systems can synchronize with your bank accounts. This means that you can save your time easily even at work.

3. Automation

It is extremely easy and fast to generate reports with real-time data on the condition of your business’s financial system. With regard to the program used, you can create budgets, invoices, and checks with a single click. For an additional cost, you can even add payroll services.

4. Backup

Unlike a paper based system, there is no risk as the computerized software can easily back up your data to the cloud. So it is easily restored whenever you want.

5. Cost

You can buy accounting software at an extremely low price, or even use a free service online. At the end of the day, the time saved can be used productively to help your business flourish. And having transparent, efficient financial records will make it a lot easier to make correct business decisions and obtain financing.

Shaquela Tracy says that using accounting software saves you from a lot of useless hassle and also saves a lot of time. It is always necessary to be extremely accurate as the IRS may call and request a report at any time. So it keeps you safe in case you are audited at any time.
So, how do you choose an accounting program that is best for you? Find out more in our next post: Choosing the Best Accounting Software for Your Small Business.

 

When is the right time to get accounting software?

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When you are in the process of starting a business, no doubt the sky is the limit. In most cases, a lot of entrepreneurs start with a well defined plan on how to start, stabilize and scale their businesses and in this tough business environment, in order to be successful as a business you have to earn it. There are so many things that you will need to achieve success but the most crucial element in modern business success is integrating technology in the day to day processes.

The biggest challenge though that seems to puzzle a lot of entrepreneurs is the timing of software integration. If you are not using accounting software at the moment, when is the right time to integrate these systems into your business? Well, here are some pointers to help you make this decision.

How fast are you growing? As your business starts to generate more demand, lock in more customers and bring in more staff, it is time to start automating your financial system. Running a business is tough but running a big business is totally a different story. Without automating your accounting during this period of rapid growth, it becomes practically impossible to track spending, taxes, profits and sales. Ultimately, you will find it harder to manage the business as the days go.

Do you want to go online? – For most brick and mortar stores the going is getting really tough with the rise of online shopping. However, if you are making plans to launch your business online, then you have to get a computerized accounting system.

Remember all online sales are fully electronic and without an accounting tech solution in place, it will be harder and in fact impossible to know how much sales you are generating online, how many people are buying the product and the overall cost of running the online side of the business.

Do you have the capacity to integrate an accounting tech system? As easy as it may look, integrating a full financial software system takes a lot of planning. However, it is always the smart thing to do so in case you feel you have the capacity to integrate and successfully run these systems, you should go for them. A lot of businesses are using technology to be competitive so if you can manage to do that, just get it done as soon as you can.

To be honest it is very difficult to put a time stamp on the perfect time for integrating financial systems. The best thing to do is to roll out and implement the system immediately you have started your business. You can then scale the software based on how your business is growing.

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