As a small business, you may have wondered whether you really need to invest in accounting software. Do I really need to pay for a program when I can use spreadsheets and a calculator? Can accounting software really save me time? Yes, it can. In fact, it can have a number of benefits for businesses of all sizes. Here are just some of the major reasons to consider using accounting software.
Automate expense tracking
Accounting software can automatically link up with your business bank account and track every expense (providing you pay by card and not cash). This allows you to more easily budget how much you’re spending, as well easily tracking expenses for tax deductions. No need to trawl through statements or count up receipts!
Simplify tax management
Dealing with tax is one of the most daunting business tasks and accounting software can greatly simplify this process. You can automatically calculate how much tax you owe and also automate tax deductions based on expenses. Specialist applications like VAT return software can meanwhile help streamline the VAT return process.
Increase data accuracy
Human error can be costly when filing tax returns or budgeting – causing you to underpay/overpay tax or inaccurately forecast how much money you have to spend. By using software you can accurately calculate how much you owe and how much you have to spend. As your business grows, this data accuracy could become more important.
Budget efficiently
Accounting software is a great tool for budgeting. By automatically tracking how much you are spending and projecting how much you are likely to earn in the future, you can create budgets in seconds. This allows you to make financial decisions more quickly and more intelligently (the fact that you can often access accounting programs through an app on your phone even allows you to budget on the go).
Improve invoicing
You can also automatically generate and send invoices using many forms of accounting software. Such programs are able to quickly fill in templates and email these to clients for fast and accurate billing. Some accounting software even allows you to automate follow-up emails for late payments.
Make more calculated forecasts
Working out how much you are likely to earn in the next few months can be difficult. Software can allow you to use data of past sales and past spending to more accurately predict what your revenue and profit will be. This can all be laid out visually in the form of easily interpretable graphs. This helps you to plan ahead more strategically – which could include knowing when to adjust prices or invest in growth.
Keep financial data secure
Many modern accounting software applications are cloud-based and can help keep your financial details secure in the event of a cyberattack or physical burglary of devices. This can be great for peace of mind.
Conclusion
There are many perks to using accounting software such as helping to automate many tasks, improve accuracy and keep financial details secure. Compare reviews and prices of accounting software programs online and choose the best application for you.