Do I need accounting software for my small business?

Even if your business is small, already has an accountant or both, accounting software can help you in many ways. Running businesses means paying close attention to details on document entries. Accuracy is crucial to being able to see and understand cash flow, expenses and revenues of small businesses. Your accounting software shouldn't replace your accountant, but it can streamline your entire operation, and make your accountant's job that much easier by helping ensure they get the right numbers and data they need. Benefits of small business accounting software include:

Accurate data

The fast data processing available with accounting software makes crunching numbers a quick, easy task for small businesses, and removes the risk of human error. Assuming the data presented to the accounting software is correct, all extrapolated data will also be correct. This means human calculations and manual data entry can be bypassed in favour of faster, more accurate computation.

Data export

You'll likely need multiple accounting files in various formats. Accounting software can smoothly and effortlessly generate spreadsheets, PDF files, CSVs and other file formats. In many cases, a simple click on a drop down menu will allow you to export, save, and print your data in an easy-to-understand format.

Data security

A high-quality business accounting software will have impeccable security, protecting private financial information for the companies whose data it handles. Access can be configured to only allow access to people within the accounting department, or access from specific authorised devices. Limited access can be granted to departments to input their data, but all other information already in the system will be kept siloed.

Report generation 

Accounting software can make getting a both a broad picture and a more granular image of your company's finances easier. The reports that are generated by your accounting software can be used for invoicing, auditing expenses, tax calculations, employee payroll, benefits and more. Small businesses can use this organised financial information to plan ahead for lean times, and anticipate regular hills and valleys that may be tied to seasonal demand.  

Accountant satisfaction

There's nothing an accountant hates more than being handed a stack of illegible, beverage-stained papers and a box of faded, crumpled receipts, By using bookkeeping software, you can implement a data-entry plan that keeps all expenses and transactions within the company up to date and hand off your impeccable digitised accounts to your accountant with confidence. Your balance sheets will always be pristine, with everything from payroll services data to credit card payments noted and accounted for.

Scalability

When you have accounting software, your internal departments won't be overwhelmed if you begin to scale rapidly. By streamlining data input and using software to handle the heavy computing, you free up employee time to focus on growth. A startup business that invests in accounting software can quickly get into the habit of online invoices and scanned receipts to help ensure assiduous record-keeping with minimal hassle. Your accountant will be able to easily keep pace as your business grows, and you can hook your payroll software into the mix for further coverage and compliance.

Business accounting software doesn't eliminate the position of your accountant, but instead frees them from repetitive work and helps them do the best job that they can for you. By implementing accounting software, you can achieve greater efficiency in gathering data for accounting, speed up calculations and avoid income losses tied to data inaccuracies. By letting accounting software handle the repeated small tasks, you can provide the best end results before you pass the reports on to your accountant, who can parse the already collated and sorted data to reach a truly sound conclusion.

Need expert financial guidance and business solutions for your small business? Contact Wilson Porter & Associates Chartered Accountants today.