Why Small Businesses Should Be Using Accounting Software

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Every small business owner wants to save time and money, right? The first step toward that goal should include small business bookkeeping software that can fast-track your financial work, freeing up time to run your business, whether it be a downtown boutique or a landscaping company.

In addition to keeping you organized and compliant, effective accounting software for small businesses makes tax time so much easier. You simply make a copy of your ledgers or reports and grant access to your accountant for easy processing. So whether you want to manage bills for your small business or track inventory to keep your shelves fully stocked, pinpointing the most efficient accounting software will help drive your business toward success.

Solutions provided by accounting software

Managing your business finances isn’t as simple as reconciling your account at the end of the month or sending out invoices. You need to track where and how you spend money as well as what projects provide the best return on investment. Here are a few ways professional accounting software for small businesses can help you track your company finances, making your job easier and instilling growth for the future: 

  • Monitor accounts receivable to keep cash flow consistent.
  • Keep an eye on your business’s current financial performance to stay on track for future goals.
  • Produce professional invoices, accept payments, and automatically deposit money into your account.
  • Track incoming funds against your expenses to ensure you have money to pay bills.
  • Identify ways to save money so you can bank some bucks for future investments.
  • Sync your bank accounts and credit cards to automatically upload data from your financial institution.

Additionally, accounting software for small businesses can provide a quick and easy way to give your finances the daily or weekly check-in they require. With a few clicks of the mouse, you can request reports about incoming and outgoing funds, cash flow, and profit and loss, so you can stay on top of financial strategies.

How your business benefits

In addition to managing finances, a business owner must also oversee all the tasks associated with running a small business. That includes answering emails, calling customers, marketing your services, managing employees, and crafting workflows. These are just a few ways small business bookkeeping software can indirectly assist your business:

  • Frees up time to focus on producing or providing quality products or services
  • Helps you save money to invest in employee benefits and lock in a powerful and reliable workforce
  • Proves business viability to loan offers and potential investors
  • Allows you to share information easily with your tax professional to save them time and you money
  • Guides future business development by identifying  the most lucrative services or products
  • Provides peace of mind when you clock out at the end of the day

How to choose the best accounting software for small businesses

Selecting the ideal small business bookkeeping software boils down to many different factors. First, you must consider a program’s individual features and how they can uniquely benefit your business. For instance, can the software help you manage bills for your small business? Does it have a user-friendly interface? Does it provide easy-to-read reports so you can quickly assess your company’s current and future financial health? 

Second, you’ll want to evaluate the price of each program. Does the accounting software provide the right benefits for what you’re paying? Comparatively, are you paying less for a program that doesn’t provide the data and services you need? For instance, if you spend hours matching receipts to their corresponding projects, you may consider investing more in an accounting software that automates that process. Here are some additional details to consider:

  • Accessibility: Many modern accounting solutions offer a cloud-based option, allowing you to access financial information anywhere. Are you on a job site and need to pull up the project’s expense report? Maybe you found a good deal on that piece of equipment you’ve been looking for but need to check your budget before purchasing. Simply open your software’s mobile app to make good business decisions on the fly.
  • Growth: If your operation is expanding and you decide to hire additional staff, make sure you can add those new users to your accounting software. This is especially important if multiple employees invoice clients or need financial reporting data.
  • Scalability: Once you invest the time to input all your data in a program, you’ll likely want to stick with it. That said, select an accounting software that offers the option to upgrade when your business needs it.
  • Integrations: Choose an accounting software for small businesses that integrates with third-party apps and tools, such as Amazon Business, Shopify, Paypal, Square, or SOS Inventory. It’s also advantageous to use a time-tracking app to document employee hours for easy payroll processing. 

Features to look for in accounting software

Accounting software for small businesses can automate or simplify many tedious tasks associated with bookkeeping. Take expense tracking and account reconciliation, for example. If your accounting software automatically inputs the whos and whats of a sales receipt, you don’t have to enter each individual expense. Simply email your receipt to the software and it does the rest, potentially freeing up hours of your time for paying projects or new client recruitment. Additionally, when you balance your account at the end of the month, compare your statement to the reconciliation ledger in your accounting software, make a few clicks, and you’re done. 

Here are some additional questions to consider when identifying the best small business bookkeeping software:

  • Does the software have a mobile app?
  • Does it offer digital invoicing and payment processing?
  • Can you track your costs and manage inventory?
  • Will it keep track of your tax obligations?
  • Does the accounting software offer quality tech support?
  • Can you generate optimal financial reporting?

Well-managed finances are at the core of your business’s success, which is why it’s vital to have reliable accounting software for small businesses that will allow you to execute financial tasks and manage bills for your small business in a timely but efficient manner. 

Plus, as your business grows, your financial data can become more complex, so you want to start out with a small business bookkeeping software that can expand to your needs. Adapting to business growth is as easy as securing the right accounting software.

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