The traditional bookkeeping is no longer feasible an age where the sheer volume of financial transactions, even for small businesses, beggars belief. Individuals and businesses are constantly driving for efficiency and a competitive edge. That often involves automating a large part of some pretty routine business tasks.
My mate Alan from Painters Toowoomba told me about getting an accounting software but I never listened. A few weeks ago I realised the lifesaver these digital tools can be. I wanted to give him a shout out and also acknowledge his efforts against my hard stubbornness.
Using an accounting software really aids in your bid for efficiency. It makes the task of bookkeeping less cumbersome and saves you lots of time. It simplifies your tax filings and tax reporting requirements and ensures your financial affairs proceed as smoothly as possible. The best part is that you don’t have to be a financial expert to use an accounting software. The ease and simplicity of use has helped many businesses save lots of money on their bookkeeping costs. If you are still contemplating implementing an accounting software solution in your financial affairs, here are top five benefits that you will derive from taking that much-needed plunge.
Drastically Cut Down on Accounting Mistakes
One of the biggest weaknesses with manual bookkeeping is the sheer number of accounting mistakes that you find yourself making. Manual accounting work will exponentially increase the instances of errors during the data collection as well as calculation.
Using accounting software will minimize these errors and even eliminate them altogether. Accurate accounting is good for your financial projections and tax reporting. The accounting software automatically does all the calculations with a higher degree of accuracy and the human error factor is eliminated from the equation.
If you are running a busy concern with a high volume of invoicing, the importance of accounting software will become even more apparent. If you have to handle a large number of detailed invoices that include specific items and the billing of worked hours at varied rates, you can do so with accounting software without much strain. The software simplifies the work involved and the accuracy of the accounting process.
Efficient Financial Monitoring
Accounting software offers you real-time financial reporting. This is a world away from the manual accounting where the only opportunity you get to have a big picture view of your finances is usually at the end of the financial year. With an accounting software solution, you can perform the monitoring continuously and at any time you wish to. This allows you to make interventions on your finances long before they grow into a more debilitating financial quagmire.
Cash Flow Management
With accounting software, you can capture the receivables and payables more accurately. Your accounting solution can use this data to project the cash flow position of your business into the future. By capturing all the records of your bills and invoices, the accounting software can therefore be used as an effective forward planning tool that will help you navigate around the shark waters of never-ending financial obligations. For example, it can be effective in helping you avoid the late fees and overdraft charges.
The real-time insights from accounting software allow for a higher standard of financial transparency in the business matters. Most of the accounting software solutions feature a live dashboard that gives you a simple visibility of the important business information. This kind of transparency is quite crucial to the running of your business and enables you to make better decisions on the direction of your business.
Features and functions such as real-time data make it easier for the software to compute all the key insights ranging from cash flow forecasting to asset management.
Short Learning Curve
Accounting software tools are getting simpler by the day. It is easier to master them than it is to master basic accounting concepts. If you are a small business owner without an accounting background, you can easily use these accounting software tools to effectively manage your finances.
You can learn to use them easily and start minimizing the accounting errors in your business that are eating into your margins. Besides, most accounting software tools also come with professional customer support and training to help you get on board as quickly as possible.
The conventional manual bookkeeping is not only complex and cumbersome but also very time-consuming. Doing your accounting manually consumes a lot of time. Not so with accounting software tools. These will drastically cut down on the time required to perform your accounting. The system will record all your financial transactions thereby saving you the time you’d spend to do all of this manually.