Managing the financial aspect of your small business with accounting software comes with a great productivity hack and profit-making automation to accelerate the sales of your products or services within a short period.
According to Xero, “Companies that rely on cloud accounting has five times the number of customers than businesses that do not”.
With accounting software, this helps to cut the inaccurate human errors made when using spreadsheets to record financial transactions.
What Is Accounting Software
Accounting software is software that assists bookkeepers and accountants in recording and reporting a firm’s financial transactions.
It also assists in the managing of clients, reconciliation of bank accounts, and generation of helpful financial reports that help your business grow continuously.
Why Accounting Software Is Important for Businesses
Using bookkeeping software is exceptionally important for your small business for many reasons. Here are some of them:
To perform your accounting tasks, which saves you time and money.
Helps you gain complete visibility into your company’s financial health. So that you can make wiser decisions.
Helps you manage financial procedures as a business owner.
Ensures greater speed and accuracy in the processing of accounts.
Accounting systems also make paying your taxes easier. You’ll have access to all the tax forms and instructions you need.
Employees tasks and payrolls are being monitored.
How Accounting Software Can Help Reduce Cost
Accounting software is a very helpful tool in reducing costs. There are various ways through which accounting software can save your business some money.
With data input being done with the help of accounting software, it reduces labour costs.
Bookkeeping software also helps in reducing costs by eliminating data errors. And thereby saving the time and resources that are being used to produce accurate accounting reports.
It enables you to identify wasteful spending. When you have a proper accounting system in place, you’ll begin to notice the excessive costs associated with all your non-productive expenses.
How Accounting Software Improves Productivity
Usually, in business, you need to create and produce at a high quality and speed. Failure to include these two variables usually leads to some setbacks.
Accounting software helps businesses set up the best accounting practice that ensures they are working at the desired speed and quality. Below are various ways an analysis software could improve productivity.
Accounting software saves time for entrepreneurs: Apart from the fact that accounting software provides access to knowledge that most entrepreneurs don’t have, it has the added benefit of improving productivity by saving time and money.
Track expenses and income: When you use accounting software, you don’t need to input any of your business transactions manually. This saves you the time and energy you could use to do other things for your business.
Manage inventory in one spot: Accounting software usually can track products and also send you reminders when you are low on stock. Once again, you don’t need to manually watch your stock, to know when you are running low when could be doing other things to improve your business.
Run reports and create financial statements: With accounting software, you can keep a pulse on your business financial health, as it generates profit and loss statements, sales tax reports, income statements etc.
Top Accounting Softwares for a Small Business
Here is a list of top online accounting services that you can take advantage of in your small business now:
1. QuickBooks Online:
This is a software that replaces a retailer’s cash register, tracks its inventory, sales, and customer information, and provides reports for managing its business and serving its customers.
QuickBooks products are usually geared toward small and medium-sized businesses, so it’s perfect for you.
Wave is also an accounting software that works perfectly for small businesses. Its features include invoicing, accounting and receipt scanning.
FreshBooks is a web-based software designed for freelancers and small business owners. It is a simple and intuitive solution, so accounting isn’t intimidating.
With Free books, you can create professional invoices, capture your expenses and track your time towards projects. Plus, all your data is being stored in the cloud, so you can work wherever you are, on whichever device you’d like.
Sage is another accounting software suitable for small businesses as it simplifies and facilitates a very diverse range of accounting tasks, allowing accountants and bookkeepers to work faster.
The Sage software is being used for everything from the simplest jobs to managing complex financial systems.
This is an accounting system designed for small and growing businesses. Xero connects small businesses with their trusted advisors and provides business owners with instant visibility of their financial position.
Another benefit Xero possesses is that it can be accessed from any device with an active internet connection.
6. Slick pie:
Slick Pie is another auditing software for small businesses. It allows users to begin invoicing customers immediately upon signing up for the software.
It also helps users to record, track and reconcile income and expenses through an online dashboard.
ZipBooks is a simple billing software that is completely free to use. The software lets you send professional invoices, get paid via credit cards or PayPal, handled automated billing, manage bookkeeping with bank reconciliation, create reports, and also track your business performance.
Where to Download Accounting Software for Free
A lot of accounting systems allows you to subscribe for a free trial version before you conclude which solution is best for you.
The free version of any of the above-listed accounting software can be downloaded on the internet. You can also get them from Softonic.
Accounting Software vs ERP
ERP (Enterprise Resource Planning) refers to a resource management system. Aside from monitoring the business’ financials, it also tracks things like tangible and intangible assets, human resources, and business materials.
ERP software has the features of an accounting solution, plus more.
Accounting software strictly handles the financial aspects of your business, but with an ERP, Intangible parameters which include working hours, product life cycles, key performance indicators, and customer relations are being taken into consideration with the business’ financials.
These intangible materials are essential to your accounting as they impact the finances of your business.
Benefits of Accounting Software
There are so many benefits that are being derived from using auditing software in your small business, they include:
It saves you a large amount of time, effort and costs
Enhances your decision-making process
Minimizes error in your day-to-day accounting activities.
Helps in taxation matters
There is increased collaboration between departments through a centralized database.
Tracks your expenses and categorizes them, so you can see where exactly your money is going.
And so much more…
As emphasized above, if you want to increase productivity in your business, getting accounting software is a need for you. With any of the 7 solutions listed above, you can be guaranteed, easier and faster accounting tasks in your business.