Is it time for small business accounting software?

Are you at a point where you are considering the need for small business accounting software, like QuickBooks? Maybe you’re asking yourself, “Do I really need it?” or “Why do I need accounting software?” To better make that decision, first, ask yourself these questions:

  • How much time are you spending figuring out how much cash you have on hand and available?
  • Are you using handwritten notes or Excel spreadsheets to calculate or monitor activity?
  • Who needs to be receiving this financial information?
  • Are all the people who need your financial information receiving it?
  • Do you feel like you can make decisions quickly if opportunities arise?

Consider your answers to the questions. If it’s hard for you to verify your data, you fear you have potentially inconsistent data, or you are not evaluating your data in a timely matter, these issues can get in the way of growing your business. It might be time to simplify your life by bringing in a small business accounting software. Here are a few reasons why using accounting software is a good idea.

1.       Gain confidence in your cash position

As they say, cash is king. If you don’t know your cash position, how can you make any decisions at all? Businesses struggling with cash, or even knowing where they stand from a cash perspective, will have issues accomplishing anything else.

Remove the guesswork and provide a foundation of confidence in your cash position. The first step is using accounting software to track, manage, and reconcile bank accounts. This keeps you on top of verifying cash and credit activity, as well as your balances.

2.      Add method to the madness

Every business has data entry functions that are fundamental to its operation. Using small business accounting software will help you add a system to performing these fundamental functions. Software programs come with steps you have to follow. Following predetermined steps, and minimizing manual entry, limits data entry errors.

The systems that are present in accounting software not only help you reduce error, but they also increase speed of entry. Integrations can also help with efficiency and accuracy. For example, several accounting software programs allow for bank connections, whether it’s by download or via a direct feed. Either method will help you streamline your entries and keep you from making mistakes between accounts. If your bank account amount and accounting software amount don’t line up, you’ll see it immediately and have an easier time fixing it.

3.      Make reporting and budgeting easier

Small business accounting software can also help when it comes time to do reporting and budgeting. Preparing reports manually can get cumbersome. More importantly, when prepared manually, reports are more likely to have errors or be inconsistent. With software, reports like the Balance Sheet and Profit & Loss statements are provided at the click of a button. They can even be adjusted by date range. This enables you to review your financials quickly and compare information easily. Preparing budgets can be made easier along the same lines.

4.      Increase the likelihood that your data is reliable and comparable

Reliability and comparability are key to being able to both review financial data and extract information on which you can base your decisions. Accounting software is more reliable than humans (this point should be obvious, but is worth repeating). Software also enables you to compare information more quickly and in more combinations than you could do by more manual means, like entering data in a spreadsheet.

5.      Control who can access your information

Using accounting software means that you’ll have better access to your data. Most programs have mobile versions and online platforms that work across operating systems. However, another great advantage to using small business accounting software is having the ability to control who else can access your information. Most accounting software allows for the master administrator to define the parameters for who can access what information. Some people within your business might need to view information, whereas others may need unlimited access. Those adjustments can be made within the software.

Can you afford not to have accounting software?

The systematic performance you receive with accounting software allows for a smooth transition from data entry to valuable and insightful reports.  These are accessed with ease, versus a time-consuming, manual process without software.

In summary, accounting software can keep you updated on balances within accounts, streamline processes, minimize data entry and human error, provide reporting efficiently, and allow owners to manage control of who can see certain financial data.

Is it time for your business to make the switch? Book an appointment with our QuickBooks expert today.