The majority of business owners, at some point in their careers, used spreadsheets to manually keep track of their finances. That can be a cost-effective strategy to start with. However, as one’s business expands, staying on top of all your transactions using a manual accounting process will almost surely become a burden. That is when accounting software comes into play.
What exactly is accounting software?
Accounting software helps you categorize and keep a record of transactions, However, there are many programs that also allow users to conduct a wide array of financial activities, like paying bills, raising invoices, handling payroll, etc. right from one platform.
There are different types of accounting software available in the market. While some major organizations employ customized accounting software programs, various startups and small enterprises mainly rely on off-the-shelf solutions to keep their accounting procedures on track. So, how does an accounting software program benefit business users? Let us find out.
Accounting software allows you to access your business’ accounting data from any location at any time, irrespective of the type of device you are using. Most online accounting software can be accessed from all devices, including smartphones, laptops, or tablets. An internet connection and a browser are all that you need to get started.
This leads to numerous benefits for enterprises of all sizes. For instance, you can prepare and raise invoices immediately from your smartphone.
All you need is just a few clicks and there you go: generate, download, and view financial reports. This gives you freedom and eliminates instances of stress, especially during tight deadlines.
Collaboration made easier
One of the most lucrative benefits of accounting software is its seamless collaboration facility. With online accounting software, everyone in your team will have access to real-time financial and accounting data. All your employees need to do is simply log in to the software platform and complete their assigned tasks. No more bottlenecks mean no more time lost.
What’s more interesting is that online accounting software programs enable multiple users to work on the same accounting data in real-time without the need of interfering with one another.
You can also assign customized access levels to different users. This allows you to grant user permissions based on the accounting tasks that each user needs to do.
Whether you are using a cloud-based GST billing software or income tax software, the biggest benefit is that your accounting data is securely stored in the cloud. All your information is protected by multiple layers of advanced encryption algorithms. This particular functionality keeps your data far safer than what you could expect from a hard drive. And guess what, your data is always synchronized, keeping it updated on the go.
Generate professional-looking financial statements
We all know how important it is to produce professional-looking financial reports. The financial statements that you share with your potential investors or valuable clients must be appropriately prepared, precise, and delivered on time. If you fail to do, they will provide an unfavourable impression about your business and its financial situation. More importantly, you may even lose out on opportunities.
Thankfully, you wouldn’t have to worry about your financial statements’ quality, as cloud-based accounting software are designed to generate professional-appearing reports instantly. You can choose from a wide range of templates and let the software do its work on your behalf.
Payroll made easier
Let’s be honest! Every business needs to eventually adopt a dedicated payroll system. However, thanks to the availability of exceptional functionalities, accounting software programs can help small firms manage payroll seamlessly. As it stands, you need not spend too much on acquiring a license for a costly payroll system.
With the right kind of software, you could not only automate employee payments but also calculate insurance and healthcare contributions, in addition to acquiring accurate payroll tax information. That’s a lot of power in your hands!
Gather valuable in-depth information
You can use accounting software to track transactions based on various filters, like individual departments, specific projects, business locations, and so on. All you need to do is ensure that your account charts are properly set up.
This particular functionality helps you develop more specific and accurate reports, besides allowing you to make key strategic decisions. One of the most interesting features of financial software is that it provides you with a clear view of where your money comes from and the different sources of your expenses. Now, that’s what we call total control of your finances.
Save money and slashes costs
Using accounting software can save your company approximately 300 hours per year on average. This includes time spent on things like repetitive duties, correcting accounting errors, and preparing financial reports, to name a few.
Besides, just imagine how much it would have cost you if you had chosen to go with ERP software. It could have easily drained away hundreds of dollars each month. In comparison, accounting software nearly does perform similar functions, yet it costs a fraction.
As it stands, cloud-based online accounting software can prove to be the most cost-effective accounting solution for a small business.
Simplified tax filing
No more hassles as you can easily file your returns and compute available tax credits with accounting software. Most of these platforms have in-built packages for GIST billing and income tax. So, you need not spend extra money on buying Income Tax software. An investment in accounting software is all you need.
Reduced inventory errors
Nearly all major accounting software consists of in-built inventory management capabilities that automatically updates itself to display the number of products you have in your inventory. It also keeps an accurate track of your sales volume and alerts you when you must refill.
It’s a given that human data entry can be an erroneous process at times. Deploying accounting software means you always have access to real-time, accurate information, as far as your stock levels are concerned. And we all know, information is money.
So, as you can see, using accounting software can lower human error and help your business grow. If your organization has been flooded with unlimited inbound requests for financial information, now might be the perfect time to switch to an accounting platform. With the correct accounting software, you can reply to invoice requests with superiorly accurate, well-presented information. Also, the software will ensure that you stay compliant with various taxation laws.