Resources for Small Business Finance Software

Accounting Software Business Guide: Payroll and Expense Reporting to Billing Software

Accounting may seem like a complex burden for business owners to bear, but the development of accounting software has greatly eased the necessary task of keeping business finances in order. Maintaining a good accounting system with the help of key software that tracks expenses, sales, and other items allows businesses to run more efficiently and without delay.

Benefits

Maintain an Efficient Records System

Having immediate and ready access to all of your important financial records is integral to organizing your business. Details often make the business, allowing you to anticipate future outcomes of current expenses and improve relations with clients. A small-to-medium business may not have the budget and staff found at large businesses to maintain an accounting department and personnel to handle official records. Small businesses do have the option of turning to comprehensive accounting software that can keep track of invoices and customer information. Accounting software provides instant access to all your information needs in one convenient setting so you can manage your business as needed and without confusion.

Consolidate Tasks

Accounting is a multistep system that involves such tasks as invoicing, budgeting, transactions, updating vendor lists and more. For owners who don’t have much time, accounting can become a delicate balancing act of goals that may not be actualized in time to prepare for future transactions. Proper accounting software eliminates this separation of tasks and helps consolidate them into one, manageable list. Being able to compile all your accounting needs into one system will greatly improve your efficiency as the owner of the business.

Reduce Costs

For new and small businesses, creating a separate accounting department or acquiring the services of a certified accountant can be a costly, ongoing investment. A number of different software can help take on nearly or all of your business accounting needs without the hourly expense. By incorporating accounting software into your daily routine, you will be able to manage your business better, control outgoing expenses, and keep track of incoming payments. Staying aware of your business records on a daily basis results in a reduced chance of messing up your monthly budget or incoming transactions.

Improve Operations

Client relations are an integral part of running a successful business. Many accounting software allow you to maintain a complete record of your vendors and customers, in conjunction with all the necessary contact information. This can be incredibly useful when you find yourself needing to make contact with a customer over potential shipping issues or when you require clarification from vendors on the nature of an expected shipment. Accounting software helps you prepare for potential setbacks and continue your smooth business operations. 

Pitfalls

Limited Functionality

Not all software is created equal. Some may offer limited functionality for managing inventory, while others are more suited for service-oriented operations. Other accounting software may not offer much in the way of keeping track of employee records and payroll, which may not be useful to businesses with a medium to large staff. Knowing what you need from accounting software ensures that you make the right investment in the end.

Software Familiarity

Relying on accounting software to keep track of your business needs can maximize time and efficiency as long as the software is easily navigable. If you are not familiar with common accounting tasks or computers in general, it may be difficult to find the benefits of using certain software. Opting for a program that offers a streamlined format for multiple tasks, understandable functions, and a simple layout can save you a great deal of time initially. If you can’t manage to familiarize yourself with the particular software, the efficiency of your business may be affected.

Not Receiving Adequate Help and Support

Business owners who anticipate the need for initial help from software developers to get the hang of it are better served by choosing accounting software that comes with extensive customer support. Being able to communicate with live personnel via telephone conversations, e-mails, or online chat support can go a long way in helping you become acclimated to all the various accounting goals you wish to accomplish.

Pricing

The cost of accounting software largely depends on how comprehensive it is. Some software focuses on nearly all aspects of running a business from payroll to shipping. Extensive, feature-rich software can run upwards of $2000 and is suitable for medium to large businesses. Small companies with reduced budgets can benefit from choosing software that focuses on a certain feature or function. It is also possible to customize some accounting software with add-ons and other upgrades that you may feel is necessary for running your business. Extras like customer support usually require a subscription for access. The initial investment may appear costly, but acquiring accounting software in lieu of an actual accountant ultimately saves time and money.

Without taking care of various accounting tasks, a business would not be able to run at maximum efficiency. Accounting software helps consolidate these tasks so that you can maximize time and money spent on running your business. Some software offers a great deal of control over nearly every aspect of the business with extensive features and records that allow you to keep track of your inventory, employees, customers, and more. The initial upfront fee rivals an investment in an offline accountant.