Accounting software is a tool for business owners that allows them to keep track of finances and tax records electronically. Small business owners and entrepreneurs who don’t have time to manually record each financial transaction benefit from using accounting software.
Whether you’re a freelancer keeping track of your own finances or a business owner who’s responsible for a few employees, the electronic records that accounting software provides can be beneficial to your finances, time, and resources. Review these seven reasons accounting software can help your business and consider how implementing an electronic system could benefit your company.
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When you have an accounting system that offers automation, you or your employees aren’t responsible for manually inputting transactions to keep track of finances. With accounting software, these tasks are automated.
Many systems link directly to your business’s bank and credit card accounts. When synced, the transactions that occurred are automatically recorded, eliminating the need to record every office supply you bought or invoice you paid.
Automated accounting software allows you to:
- Balance your accounts quickly;
- Reduce your labor costs;
- Save your employees’ time;
- Ensure there are fewer accounting errors.
When you use accounting software, your financial tasks are automated and the task of recording these transactions no longer falls on your shoulders or the to-do lists of your busy employees.
2. Tax Season
When tax season rolls around, you may be staring at a huge pile of receipts and invoices that you need to make sense of and sort through. When it’s time to pay your taxes, you may feel stressed and rushed. If you didn’t keep an up-to-date ledger of your expenses or your financial records have been neglected throughout the year, you may be forced to spend extra time and money preparing to file your taxes.
With accounting software, your expenses and other financial transactions are tracked automatically throughout the year. When tax day comes, you simply need to pull the records from your accounting system to accurately determine your expenses and income for the year, saving you time, money, and stress.
3. Digital Invoices
As a business owner, your main priority is probably to ensure you provide a seamless customer experience. Your customer is at the center of your success so it’s important to keep them happy and offer a positive experience as they do business with you. When you send a digital invoice to clients, you make their lives easier.
With a digital invoice, a bill and payment method are automatically sent to your client via email. They can pay the invoice in just a few simple clicks, without ever dealing with the hassle of sending a check in the mail or visiting your office. This makes it easier for clients to do business with you, which also makes it more likely you’ll earn their repeat business and that they’ll refer your business to friends and family members.
4. Cash Flow
Even if you’re a freelancer or contractor, chances are you have cash flowing in and out of your accounts all the time. If your small business is trying to stick to a budget, it can be impossible to know your profits and expenses without keeping constant tabs on your cash flow.
Accounting software keeps track of all transactions related to your accounts electronically, so you don’t have to worry about forgetting to log a credit charge for a business lunch or an invoice you paid for printer ink cartridges. With most accounting software, when you sign into your online account, you can see your cash flow in real time through charts and graphs. This allows you to keep track of your current account balances with one quick glance.
You’re not always in the office, chained to your computer. Sometimes, you may be on a business trip, visiting a job site, or simply out to lunch. With accounting software, however, you always have access to your account balances and finances. Most accounting software is accessible through mobile apps, which can be downloaded to your smartphone or tablet.
When you log into your online account through a mobile app, you’ll gain instant access to your financial data in real-time. You can see the most recent transactions that occurred within your accounts and your current cash flow. Having access to this data no matter where you are saves time and helps you make educated decisions on the spot that could help grow your business.
Whether it’s time to file your taxes or you simply need to know how much money you’ve spent on marketing throughout the year, nothing is more frustrating than unorganized finances. With accounting software, your transactions and cash flow are neatly organized and updated instantly through your online account.
If you’re looking for facts or figures related to your accounting, simply sign into your online account and you can find what you need without sorting through paperwork, sifting through receipts, or endlessly scrolling through credit card statements.
When it comes to making decisions for your business’s future, accuracy is key. You need to know your current financial input and output to better understand the moves you could make to keep your business thriving. When you’re faced with a big decision related to your company, accounting software makes it easy for you to see your financial history.
With this knowledge, you can make better predictions on how the decision will impact your financial future. With accurate transactions and tax history at your fingertips, you’re able to make informed business decisions that you’re sure will contribute to the growth of your company.
Whether you’re interested in raising your business’s credit score, you want to be better prepared for tax season, or you’re simply tired of pen-and-paper invoices, accounting software is an asset to your company’s finances. When you implement the right online accounting system that works for your business, you can save time, frustration, and money while combating disorganization and inaccuracies.
When it comes to all aspects of accounting software for your business, Intuit Quickbooks is our preferred partner who always accommodates their customers’ needs and offers great promotions and new customer pricing. Learn more here.
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