As a small business owner, it is good to be updated and well acquainted with current trends in the business world. Using accounting software saves hours of time compared to handling the books manually and is usually more efficient than using a spreadsheet. It’s because accounting software reduces or eliminates redundant data entry, like entering the customer’s address on the quote, then the work order, and then the invoice.
Reason to have an Accounting Software
If you are a sole proprietor with no employees, low or no inventory and a handful of customers, you may not even need accounting software, or there are free or low priced accounting software options available. Small business owners who carry inventory, have more customers or employees will save time and have more accurate records if accounting software is used.
Most accounting software is much easier to use than it once was, and some small business accounting software was designed for ease of use by a person with no accounting background at all. One of the emerging issues currently is cloud computing otherwise referred to as web- based accounting or cloud accounting. It is one of the revolutionary things that have swept the world by storm since it has reduced the burden of using the traditional accounting systems that was tiresome and boring.
This is because of the following benefits that many entrepreneurs enjoy.
- It Provides Real Access to Your Financial and Accounting Information
The ease of access to accounting information of your business is what makes cloud computing a must have for your business. All you need in order to access your company’s up to date financial info is just an Internet connection.
When you have the connection, you will be able to see the financial position of your business from anywhere in the world at any time. As the manager, therefore, cloud computing allows you to move around from one location to another but still be informed about how your business is doing as opposed to the past where this information was only accessible in the office.
- Reduces Overhead Cost
Accounting for the longest time has always added extra expenses to any business. This is because the business owner had to hire a service accountant. However, with cloud computing, what you need to do is pay the subscription fees and you are ready to go. This will save you a considerable amount of cash in the long term.
Remember to figure support costs into your accounting software budget. Some accounting software provides fee-based support by email or phone from the moment you start using the software. However, it is common for the cost of small business accounting software to provide support at no cost for a set period of time so you can ask questions when you first start using the software without incurring additional expenses. After that time period, you pay for support annually, quarterly or on a per-use basis.
The accounting software may have a free online user forum where you can ask questions as well. It is often a good option to fee-based support when your question is about how to use a feature.
- Easy and Secure Sharing
The issue of emailing accounting information belongs to the past. Presently, almost every small business owner is using cloud accounting to share the information about the financial position of the business to different business stakeholders. Furthermore, you do not need to back up all the files using the USB stick.
- Data Backup and Security
The cloud computing provider you choose ensures that the security for your data can never be compromised. In case of system failure, the accounting information for your business is always backed up and you should never worry about data loss. To make it even better, you do not have to pay extra fees for the online backups.
- Cost Effective
Doing small business accounting online has been found to be cheaper as compared to other accounting options available. First of all, you do not need to pay upfront fees the way it is done when you buy a desktop accounting package. Secondly, it has real time updates and you do not have to update anything the way it was being done before since updates are included in the price.
- Automatic Upgrades
Using cloud computing for your business will never require you to update it. This is because the provider updates it automatically from the server. Isn’t this a great idea? I’m sure it is because other accounting software will need you to update them from time to time whenever a new version is available. The automatic updates save time and allow you to do constructive work or engage in other activities that would improve the business.
- Enhances Business Efficiency
When all the above benefits are taken into account, you can conclusively agree that the efficiency of the business will be improved. When the overhead costs are reduced, definitely the business will have better savings provided that the income generated is kept constant. On the other hand, you will spend less time collecting and checking the accounting books.
It’s important to note some accounting software is designed specifically for industries such as construction, manufacturing, and wholesale distributors. If your small business is in an industry with specific accounting requirements, there may be accounting software with features to meet those requirements.
Before you buy accounting software, talk to at least three other people who use accounting software in businesses that are similar to yours. Discuss what they like about their accounting software and what needs improvement. You may find that there is no perfect accounting software out there, but do not be discouraged. The goal is to find accounting software that best meets your small business needs.
In conclusion, cloud accounting is an effective way business owners can get the financial information needed. As opposed to a traditional accounting system, this method is far much better than any other accounting method currently available in the market. It is easier, secure, fast and reliable way to manage your business finances. It will go a long way to save you time and money and make it easy for you to access real-time information anywhere anytime.