Business work for profit, and you would agree with me if I say that – “profit comes only with high amount of risks”.
Risks and business are interconnected, particularly, in the initial stage of business setups where a small fault can result to big losses. Whether you are running a successful business or you have just started, the base rule for both cases is that you must “always keep track of your financial activities”.
And if you want to keep a perfect track of your financial activities, then you must have to use accounting software for your business – doesn’t matter whether it is a small or mid-sized business or big organization.
Even in today’s business world, it is estimated that there are almost more than 50% small businesses, do not use accounting software for their business.
They may be tracking their financial activities by using combination of paper and Excel. Or they may be manually calculating everything such as invoices, purchases, expenses, income and other documents and sending them through mail.
Reasons Why Most of the Businesses Do Not Use Accounting Software
There could be many reasons, why businesses have not moved their financial activities to accounting software. But the estimated three major reasons could be that they might be thinking it’s:
- Very much expensive
- Too difficult to use or
- Accounting software are very much prone to errors
Well, there thinking is somewhat true to some extent, but I totally disagree with it. You should know that with new technology there are always some glitches within it and same things go with accounting software. With some helpful technology, some glitches also come with it, but it is ignored as long as it is working properly and you are benefited from it.
Let us Take Practical Scenario
I have been managing my five businesses with five different owners. In the end of every month, they send me their transaction data (or say bills) in several ways: bunch of expenses stapled together, boxes of receipts or a listing of expenses and purchase in a excel sheet. When I receive the information by these means, I totally get confused and I always keep asking after some deduction that is seems to be missing like credit card interest or bank charges.
But from one of my business owner, when I receive a computerized accounting file that has kept up-to-date that includes every detail of expense and purchases, I am fairly confident that there would be no mistakes in the financial operation.
So, what you have learnt from the above example!
In my opinion, I think all serious business owners must keep accounting software for tracking and maintaining their businesses financial activities. Beside from completeness of data, there are other various advantages for keeping accounting software.
Accounting software, keeps track of your cash flows, transactions, expenses, keeps details of vendors, employees, payments, receipts, performs calculations and creates reports. This is the just the main features of the software, but there are several accounting software that helps in enhancing profitability, operations, effectiveness and also reduces costs.
There are various types of accounting software available out there such as QuickBooks, Zoho Books, Dynamics, Avaza, FastFund Accounting, Officewise, Clear Books, etc for various purpose and sizes of business. However, if you ask me, which accounting software is best for business then I would recommend QuickBooks.
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In today’s business world where competition is very high, accounting software plays important role in business.
So, Here Read The Role of Accounting Software In Business!
9 Reasons Why You Should Use Accounting Software in Business
- The use of accounting software brings regulation in business finances. This in turn results in better financial management.
- It saves time as it makes large and burdensome calculation easily within minutes. Accurate data helps in making decision quickly.
- Online business accounting software help in tracking every day activities, expenses, receipts, payments, operations, procedure and controlling workflow and generates ever day reports. It is possible to generate reports as per different parameters and time periods as per your needs.
- Payroll software generates the salary automatically and hence employers do not need to keep the information about their employee’s leaves, bonus, tax deduction, credits, wages, etc.
- The software also helps safeguarding the sensitive/confidential information of the business or company such as profits, revenues, loans as you do not want outsource accounting process.
- The accounting software can also be customized as per the business types and it helps in evaluating effectiveness and progress.
- The software also play significant role in planning future tasks by using budget and forecast information provided by the accounting tool.
- Information from accounting software also helps in planning market strategies and product planning.
- Other advantages that most of the accounting software has are: they saves time, money, minimizes the entry of duplicate data, reduces errors, makes data sharing with tax agencies, banks and other financial organizations, accountants easier and accurate. You always have the history of business, customers, vendors, employees, etc as well as audit proof of the data.
So, these are some of the very effective role that is played by accounting software and by now you might have understood that why a business or company needs one.
Accounting software brings discipline, makes things easier and automation process to various aspects of business. So, go ahead and grab one of the effective accounting software and makes your complex and difficult accounting process of your business accurate, fast and east.