How can accounting software can help?
Many small business owners would agree that running a business can be a bit like a crazy plate spinning act, working out which parts (or plates) to prioritise so that everything doesn’t come crashing down. Sometimes when you really want to be focusing on your company’s growth and future you find that you’re bogged down with laborious tasks such as salary payments, stock levels and unpaid invoices. Accounting software can help rebalance your priorities, freeing up some of your valuable time to concentrate on other things and allowing you an invaluable insight into your financials.
If you’re a small business owner, follow this quick guide to Accounting software to find out how it can help you run your business effectively and efficiently and achieve growth at the same time.
Accounting software in a nutshell
Accounting software is a computer program that helps business owners automate all their financial transactions and easily create instant financial reports. Programs vary from supplier to supplier but most include the following basic modules:
- Invoicing - to help you create, print and send invoices to clients
- Accounts Payable - to help you pay bills and create purchase orders etc
- Accounts receivable – to help you keep track of money received
- Inventory - to help you keep track of stock levels and sales
- Payroll - to help you create employee profiles, benefits, deductions and track hours and in some packages allow set up of automatic payment or electronic payment to staff
- Reporting -to run reports on an ad hoc basis to understand what is and what isn’t working for your business.
Other, more sophisticated packages or modules may include features such as Project and Job Costing, allowing you to ensure projects stay within budget and more commercial features such as Tracking and Tracing Returns, enabling you to manage returns efficiently and identify trends.
Which accounting software solution should I choose?
There are some important choices to undertake when selecting an accounting Software package and supplier and it is important to take the time to find the best solution to suit your company’s needs. Your main considerations should be:
- Your business sector -There are various accounting software solutions suitable for different sectors and it is important to choose the right one so that it offers the particular features and flexibility that are perfect for your company. For example, there are programs specific to banking, construction, medical, not for profit and retail.
- The size of your business – If your business has fewer than 50 employees, you can opt for a more basic software program. Larger companies will need a more robust, more complex program.
- Your current software offering – If you already have an accounting software package installed and you’re upgrading to a new one, you need to consider how you will transfer everything from your old software package to your new one. Ensure that your new Accounting software provider can provide help and support with this transition and make sure your old is compatible with your new solution.
What are the benefits of accounting software?
Accounting software can greatly benefit the day to day running of your business and its expansion. Some of the advantages are:
Reduced overheads - Accounting software can help reduce staff overheads but allow you to still keep track of the financials, enhancing your business’s overall productivity and efficiency.
More time to concentrate on other things - Accounting software can automate the laborious tasks such as invoicing or payroll to free up your time and allow you to concentrate on other aspects of your business.
Tidy up your finances – Accounting software allows you to easily organise your company’s financial information by storing it in a central location which can be accessed at any time. This helps you keep on top of things and not allow important issues to be missed.
Better financial decision making – Accounting software can offer you budgets, forecasts and financial reports almost instantaneously, allowing you to better understand your business and make solid financial decisions. This kind of access to relevant and critical business information at the touch of a button can make all the difference to the success of your business.
Running a company, whatever the size, is not an easy job. Buying an accounting software package for your business will help you become a little less like a circus plate spinner and more like a successful business owner, allowing you to concentrate on the important things, like growing your business and making more money.
Originally written by Iris Accounting software.
