The rise in the adoption of small business accounting software directly corresponds with the growing number of start-ups navigating the business landscape. A lot of these start-ups already have excellent ideas, products, and services. Often, all they need to succeed is the right set of tools to manage businesses more effectively.
Accounting software can help small businesses and startups attain the efficiency, professionalism, and seamlessness that corporations with larger budgets display.
Now, let’s take a look at the Accounting Software advantages:
1. Convenient data entry for team members
Some small business accounting software options come with avant-garde tech that allows users to simply take a picture of a bill, receipt, or invoice in order to enter data. Your team members need not sacrifice hours they could have otherwise spent being productive on data entry. They simply snap it and then the system generates an entry in data format – the entry can also be edited.
2. Hassle-free approvals
Besides easy capture of data, small business accounting software allows business owners the amazing convenience of at-a-click approvals. As your business expands and you round up a bigger team, you might want to delegate approvals to team members whom you have grown to trust. Most accounting software will allow you to add expense approves and even add tiers to the approvals process.
3. Elimination of human error
Accounting software is able to automatically capture data from images, as we discussed earlier, and also from emails, online sources, and other accounting software. This automatic data import can eliminate human error to a great extent because it does away with the need for the accountant (and the rest team) to enter numbers manually.
4. More efficient tax management
Business owners – small business owners in particular – often admit that they miss out on claiming a fairly large chunk of tax deductions in a year. A ton of dinner meetings bills and transport tariffs go unaccounted for and therefore, claimed. Many small business owners pick up receipts with genuine intentions of filing them as tax deductibles, but more important things get in the way. The snap feature in accounting software solutions can help you bleed less capital from missed tax deductions.
5. Improve accountant’s efficiency
Additionally, your accountant’s tax management also stands to improve because you should typically be able to sort suppliers based on tax.
Categorization and sorting are in fact some of the most well-known abilities of accounting software.
Another amazing benefit that your accountant can derive from the accounting software is more efficient record keeping:
- The system flags up anomalies and discrepancies in data.
- Duplicates are recognized and removed from the system
6. Professional invoice management
Small businesses are very often still in the process of cementing SOPs and formats associated with their paperwork. However, a lack of standardization in paperwork (or even worse, errors!) reflects poorly on the company. It may seem minor, but impressions are everything when you are looking to build a name, a face, a reputation, a brand.
System-generated invoices can assure you of standardized, professional, and error-free invoicing.
7. Easy tracking
Accounting software gives each of your clients a front-end dashboard. The client can easily reference their relationship with you and it becomes very quick and easy for you to track and highlight any pending payments or paperwork to your client.
Additionally, as your client relationships expand in scope, you can track the time devoted to various projects and bill sbd/or negotiate accordingly.
8. Business insights
The best small business accounting software options will offer you periodic, spontaneous insights into how your business is performing. You are thus better equipped to make sound decisions.
All of the on-the-go data that you access is live and up to date. Unlike referring to painstakingly prepared offline spreadsheets, you’re not making decisions based on last month’s or last week’s data.
9. High level of security
Data protection and security are understandably a huge concern for business owners across the board. Sensitive company financial data must be secured at all costs.
Accounting software is most often password access controlled and therefore offers a good level of internal security. Firewalls – or double firewalls in some cases – make for robust protection from external data breaches.
Accounting software is also extremely relevant in today’s context because remote working is far more popular. Smart small business owners are rapidly picking up scalable business accounting software that synchronizes with other accounting software for a more professional business personality and a more efficiently managed business.
Are you a small business looking to streamline accounting for your firm? Click here for the best accounting software.