Computer software has revolutionized the way people do business. Accounting software makes it clear that software can improve the way entrepreneurs understand and conduct business. If you still rely on accounting spreadsheets, consider these five undeniable reasons why you should use accounting software.
Online Accounting Software Saves Your Business Money
Hiring a full-time accountant will cost your business about $63,550 per year, and that doesn’t even include benefits or taxes. Outsourcing your business’s accounting needs can also cost thousands of dollars a year.
Unless you have a large business with complex revenue streams, you probably don’t need to spend that much money on an accountant. Instead, you can spend a smaller amount on accounting software so you can direct more of your money toward growth opportunities.
Even if you run a large business that requires a dedicated accountant, software helps that person accomplish more work in a shorter amount of time. Use a program like Wunderlist to help prioritize your workload. The fewer professionals you keep on staff, the less money you have to spend.
Software Helps Businesses Avoid Errors
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One small error or miscalculation can put a business in financial peril. Unfortunately, human error happens much too often in the business world. The more work you or an accountant accomplish by hand, the more mistakes will affect your organization. Software helps businesses avoid those errors so owners and managers can make informed decisions that lead to success.
Many computer programs even review your financial information to detect potential errors. Those alerts save you significant time and money. It’s much easier to run a business when you don’t have to spend all night hunkered over spreadsheets, trying to find an elusive mistake.
You Can Easily Access Your Business’s Financial History
Entrepreneurs who rely on paper or spreadsheets have difficulty accessing their business’s financial histories. That wasn’t such a big deal a couple of decades ago when all businesses experienced access to information. Today, no one has time to wade through reams of paper in their offices. Business leaders need to make quick decisions in the field.
Cloud-based software makes it easier than ever to access your business’s financial history. Using online accounting software from Sage, for instance, allows you to view financial information from any computer or mobile device. No matter where your business takes you, you have easy access to invoices, payments, and financial charts. That’s especially important when you get out of the office and start making personal connections with vendors, clients, and associates.
Whether you’re in the conference room or building relationships on the other side of the world, cloud-based accounting software gives you access to the information you need to make good decisions. It also lets you reference past data on the fly, which is useful if someone asks you a question about your financials.
Accounting Software Automates Important Actions
Business owners shouldn’t waste time attending to menial tasks. Using accounting software that automates important actions reduces the amount of time you have to spend doing paperwork and submitting forms.
Some automated tasks you may need to implement include:
- Processing payments
- Calculating employee benefits and taxes
- Generating monthly finance reports
- Tracking a project’s billable hours
Look for flexible software that matches your business’s unique needs. The more tasks you can automate, the more time you can devote to growing your business.
Online Accounting Software Keeps Your Business Practices Up to Date
Accounting standards changes frequently to keep up with evolving business practices and government regulations. When you use online accounting software, you don’t have to spend as much time acclimating to these changes. The software developers simply make adjustments so that your business conforms to new guidelines without much, if any, effort on your end.
This means that using reliable accounting software not only saves you time and money, but could help you avoid things like tax penalties and IRS audits. No one wants to endure those frustrating experiences.
These five undeniable reasons should convince anyone that accounting software is the best option for businesses of all sizes. For most entrepreneurs, it’s all about keeping costs low, saving time, and avoiding mistakes.
Have you adopted accounting software for your business yet? Which features have contributed most to your business’s success?