If you are like most small business owners, you might have initially used a spreadsheet to record your finances. While there is nothing wrong with that, a spreadsheet may not be a sufficient tool for keeping track of the finances, especially if your business is growing. Manual accounting systems oftentimes fail to provide for the growing accounting needs of a startup. If you want a more efficient option, then it is time to consider getting accounting software.
Custom developed accounting software is designed to make recording and categorizing financial transactions quick, precise, and easy. They allow users to manage payrolls, send customer invoices, and pay bills easily and accurately.
Accounting software packages for startups offer a wide range of benefits. Here are some of them.
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1. Time-saver
Once your accounting software is set in place, it can handle your bookkeeping and accounting processes automatically. As a result, you can save significant hours of work each week. For instance, when reviewing transactions, there is no need to download CSV files from your credit or bank accounts and manually input the data on a spreadsheet. Your accounting software will automatically do the job for you, which means you have more time for more important business chores.
2. Easy financial reports
Preparing regular reports can be quite time-consuming, as well. Good thing most accounting software can have built-in reports with automatic updates. You are only a click away from the balance sheet, cash flow statement, and profit and loss statement. If you are required to prepare and submit a certain type of report, you can customize your reports easily and save the settings for future use.
3. Synchronized financial data
When data is stored on various platforms, it often requires time and effort to collect the data that you need. But this would not be the case if you have an accounting program in place. The software syncs all data from online accounting tools, which means it is easier and faster to complete a financial record. There is no need to access financial information from each source and manually enter data.
4. Professional financial statements
Financial statements need to be not just accurate, but also professional-looking. This is especially true when dealing with potential investors. When you have accounting software, you don’t have to worry about this aspect. Accounting software has features that provide standard financial statements with the right format and are easy to customize. Once you get requests, it is easier to provide them with a professional-looking, formal, and impressive financial statement.
5. Convenient payroll processes
Payroll is another area where accounting software can help small businesses. These tools allow businesses to automate their payrolls, compute healthcare and insurance contributions, and get accurate payroll tax details. While you will need a special payroll system soon, accounting software’s automated payroll features can help a lot while your business is still growing.
6. Detailed insights
You can also use your accounting program to monitor your transactions on different levels and areas. This feature helps you to know where your income is coming from and where your expenses go. When you are sufficiently informed about these matters, it is easier to make specific reports. More importantly, it is easier to make decisions for the success of your business.
7. Painless tax filing
Tax filing is one area that can be quite daunting for small businesses. Fortunately, accounting software gives you quick access to standard financial statements and accurate data. This allows for more streamlined computing for available tax credits and filing for returns. Furthermore, some accounting programs even have built-in reports for sales tax and payroll tax to make filing as convenient as possible.
These are the reasons more and more startups use accounting software. Through these innovative business programs, small businesses can save time and energy in processing data and monitoring transactions. This allows them to focus on the most important thing – growing their business.