There are multiple different types of software available to make life easier for a small business owner, from marketing to accounting, or even project management. So how do you decide which software to buy? How do you prioritize which type of software you need the most?
Arguably finance is the most important aspect of running a business. It is also a task that requires extensive knowledge or technical training. Account software helps you make up for your lack of expertise without the immense expense of hiring an accountant.
- It saves time – handling your finances is a very time-consuming and sometimes tedious task, but with accounting software, you save hours and hours of work each week on manual bookkeeping by making all these processes automatic. You will not need to download CSV files from your bank accounts or manually enter data onto spreadsheets – account software pulls all your data automatically.
- It generates key financial reports instantly – no more waiting around for your admin assistant to put together monthly reports, no more sifting through paperwork and combining multiple spreadsheets. Accounting software has built in reports that are automatically updated and reports can be produced at the click of a button.
- It promotes data accuracy – manually updating cells in multiple spreadsheets is not only incredibly tedious, but it also opens you up to human error. With accounting software, your reports and statements will be automatically updated to reflect any changes you make at any time.
- It reduces inventory error – all accounting software includes basic inventory management that automatically updates the amount of product you have to hand.
- It produces professional-looking documents – once you start to issue external financial statements it is important to present documents that look professional. If you are dealing with potential investors, the reports you share need to be accurate, correctly formatted, and delivered quickly. You do not want to give a negative impression of the state of your finances!
- It synchronizes all your data – your financial data is spread out across various bank accounts, credit card statements, and payroll services which means it can take hours to go back and forth between platforms to collect all the data you need. Accounts software will automatically sync all the data from your online accounting tools, meaning you do not need to download separate pieces of information and spend hours on tedious data entry.
- It streamlines tax filing – having accurate, categorized data makes it much easier when it comes to filing taxes meaning you can ensure you pay the right amount of tax the first time and do not miss out on any available tax credits.
- It simplifies payroll – you will most likely need specialized payroll services at some point but many small businesses use accounting software to handle payroll whilst they are still growing. You can automate payments to employees, calculate national insurance and pension contributions, as well as automatically apply tax codes.
- It gives detailed insights – you can use accounting software to track your transactions by department, project, or location, giving you a clear picture of where your income is being used and areas of expense. This can help you make informed business decisions.