What Can Accounting Software Do For Your Business?
Take a step back in time for a moment and imagine the time when all accounting was managed without electricity, computers and even calculators. It was a time when all entries were done manually into heavy ledgers and where just one mistake could mean hours spent recalculating figures to locate the “missing” money.
Thankfully, times have changed and we now have the power and technology to help us to collate complex accounts electronically and locate and adjust errors in mere moments. But are spreadsheets enough? When is it time to consider a more robust accounting solution and how do you go about choosing the right one for your business? Most importantly, what are the benefits?
Take Control Of Your Accounts
Wouldn’t it be great if you could automate those arduous accounting tasks that seem to take up a lot of the day? Wouldn’t it be even better to have all of your accounting tasks consolidated into one central hub that can be accessed in the office, on your PC at home and even on your mobile phone?
Well, this is the flexibility and agility that accounting software can bring and with cloud-based, software-as-a-service offerings and solutions that offer automation of many day-to-day accounting tasks, you get to keep control of your accounts while eliminating many of the administrative burdens.
Consolidation of Processes and Data
With accounting packages, one of their most important advantages is the time it can save over manual bookkeeping and accounting. Both front-end and back-end transactions are recorded and accessed in the same place allowing you to write checks, run reports, create invoices and prepare financial reports and tax returns without ever leaving the system.
Many accounting packages, and especially those that operate in the cloud, can be accessed 24/7 on any device giving you complete control and visibility of your accounts no matter where you are. All data is consolidated in the system, backed up, maintained and secured in one central database, making it easier than ever to run reports in minutes or answer questions on the go.
Preparing Financial Statements
Using a manual accounting framework to prepare financial statements can be an administrative headache. With accounting software, on the other hand, these often complex proclamations can be created at the touch of a button for any timeframe. That allows for the continuous and accurate monitoring of the position of the business and for any concerns to be addressed before things get too risky.
Better Cashflow Management
When you use an accounting software package to record receivables and payables, it can automatically and accurately calculate the company’s cash flow position for the future. This can be particularly useful if you also input all bills and customer invoices into the system as you can run reports that show whether you have enough money to cover the bills that are due and avoid late fees and overdraft charges. Better to be in the know than in the red.
Human error is sometimes unavoidable, but accounting software can help to reduce and even eliminate many of the common errors that are made. Manual accounting requires carrying out many mathematical calculations by hand. Any incorrect entries made during the process could have a huge impact on the end balance. Accounting systems keep track of every entry as it is made, flagging errors early and even correcting them automatically.
The speed and efficiency that accounting software can bring can often result in reduced operating costs. While these savings will need to be balanced against any hardware and software costs, an accounting program will allow each member of your financial team to do more in less time and focus on other areas, such as reviewing financial strategies and preparing for investment rounds.
As you no doubt already know, preparing business taxes can often be a complex and laborious process. Not only does the process require you to have a good understanding of your finances, but also to keep close track of every single business transaction. From purchasing equipment to entertaining clients, every detail needs to be recorded. Most accounting software solutions either include a tax accounting module or can integrate with other systems. This allows you to reduce the time it takes to prepare your return as many functions are processed automatically.
Investing in accounting software could be one of the best things you do for your business. The primary benefit to business owners is efficiency and the ease of accessing the numbers you need when you need them. From reporting to the board to preparing financial statements, you’ll always be in control, up to date and operating in compliance with government taxes and levies affecting your business.