Five Reasons to Use Accounting Software
This year, make a crucial change to your business operations and switch to computerized accounting software. If you are using a manual accounting system, on paper or in Excel, you are wasting time and even putting your company in jeopardy.
According to a recent survey of 700 small business owners by Sage, business owners who do not use accounting software are more likely to struggle with accounts receivables, accounts payable, and invoicing than entrepreneurs who use computerized accounting. Shaquela Tracy, CPA, of Chicago accounting firm The Meekins Group, says that using pen and paper or spreadsheets is often a “complete and utter disaster.”
1> Efficiency: Using a software accounting package will save you tons of time that would have been spent on tedious calculations. Once you’ve learned the basics, it’s infinitely faster to look up past transactions and data and to run reports for loan applications or taxes.
2> Accuracy: Having a computerized system means fewer mistakes. Most systems can sync with your bank accounts, so you can make sure all entries are correct and capture every expense item.
3> Automation: It’s simple to generate reports with real-time data on the state of your business’s finances. Depending on the program, you can create checks, invoices, and budgets with the click of a button. Payroll services can generally be added for an additional cost.
4> Backup: It’s much easier to back up your data using computerized software, especially if you can save it to the cloud. Then there’s no risk associated with losing your paper-based system.
5> Cost: You can purchase accounting software at a remarkably low price, or even utilize a free online service. In the end, the time saved can be reinvested in growing your business. And having clean, accurate financial records will make it easier to make sound business decisions and acquire financing.
This year, make a crucial change to your business operations and switch to computerized accounting software. If you are using a manual accounting system, on paper or in Excel, you are wasting time and even putting your company in jeopardy.
According to a recent survey of 700 small business owners by Sage, business owners who do not use accounting software are more likely to struggle with accounts receivables, accounts payable, and invoicing than entrepreneurs who use computerized accounting. Shaquela Tracy, CPA, of Chicago accounting firm The Meekins Group, says that using pen and paper or spreadsheets is often a “complete and utter disaster.”
1> Efficiency: Using a software accounting package will save you tons of time that would have been spent on tedious calculations. Once you’ve learned the basics, it’s infinitely faster to look up past transactions and data and to run reports for loan applications or taxes.
2> Accuracy: Having a computerized system means fewer mistakes. Most systems can sync with your bank accounts, so you can make sure all entries are correct and capture every expense item.
3> Automation: It’s simple to generate reports with real-time data on the state of your business’s finances. Depending on the program, you can create checks, invoices, and budgets with the click of a button. Payroll services can generally be added for an additional cost.
4> Backup: It’s much easier to back up your data using computerized software, especially if you can save it to the cloud. Then there’s no risk associated with losing your paper-based system.
5> Cost: You can purchase accounting software at a remarkably low price, or even utilize a free online service. In the end, the time saved can be reinvested in growing your business. And having clean, accurate financial records will make it easier to make sound business decisions and acquire financing.
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