Small Business Accounting Software: 5 Reasons Businesses Need It
Small business owners are busy people, and unless they’re accountants themselves, it's unlikely they want to spend much time tracking finances. Investing in small business accounting software can help time-strapped entrepreneurs by automating, simplifying, and tracking critical financial information. Here are five reasons professionally designed accounting software is a good investment for small business owners.
1. To organize income and expenses
No one enjoys collecting, storing, and then inputting receipts, invoices, and bills. An accounting system that is easily accessible from desktops, laptops, and even mobile devices can enable small business owners to ditch the shoebox filled with scraps of paper. The ability to capture images of invoices and receipts with a smartphone app makes it simple to enter information, and helps keep items organized.
2. Provides a real-time snapshot of finances
With small business accounting software, business owners have everything that they, their bookkeepers, or accountants need right at their fingertips, 24 hours a day, 7 days a week. With login credentials, accounting and finance staff can access all the information they need immediately, and perform bank reconciliations, create financial statements, and complete double-entry accounting as needed.
3. To store sensitive financial data securely
Paper-based accounting and bookkeeping systems expose businesses to the risk of sensitive information falling into the wrong hands. With cloud-based small business accounting software, businesses enjoy robust security when it comes to protecting data. Automated back-up and top-level authentication help limit unauthorized access to information, and encryption of critical data such as credit card and bank account numbers helps keep business information secure.
4. To easily spot trends and patterns
Small business accounting software makes it simple to create reports showing trends and patterns in business activity, accounts receivable, expenses, and even inventory. For example, a quick scan of an Aged Receivables report shows all customers who owe money, and breaks the delinquencies down into time periods, such as over 30 days, over 60 days, etc. This makes it easy to view customers’ payment histories and spot troublesome trends with collection activity.
5. To save time and money
Easy-to-use dashboards, automation, access, and report-generating capabilities make it quick and simple for small business owners and staff to input financial and accounting information — a task that could take a bookkeeper or accountant hours to complete manually. These time-saving features also save business owners money and free them to focus on running their business instead of spending precious hours on tedious accounting tasks.