Bookkeeping and accounting software is now an extremely popular way to run your business.
As a small business owner, it can be really easy to get sucked into the day to day operations. Preparing invoices and recording your expenses can take a lot of your valuable time.
By using accounting software you can streamline your bookkeeping so you can get back to the important things. Check out our 5 reasons to use online accounting software.
1. It automates your accounting
Automation makes accounting tasks simple, therefore saving you time. It depends on the accounting software you choose (we recommend Quickbooks), but it can add totals, compile statements and generate invoices. You can enter all your product/services prices and set your vat charge rate.
Automated figures save you the hassle of calculating totals by hand. Automatic totals are more accurate than hand-calculated figures. There’s less room for error when the software computes income and expenditure totals for you. This means you have a clearer picture of how your business is performing.
2. Improves efficiency
Many accounting software allows you to complete your bookkeeping in a few easy steps. You simply enter your business transactions and the software computes the totals. What’s even better is that most accounting software is cloud-based now. This means that you can do your accounting/bookkeeping from anywhere with an internet connection.
You can link your bank account to your software. This allows the software to pull all expenses and income straight from your bank. Most accounting software has a recurring invoice feature, which allows you to recur invoices weekly, monthly, yearly, it’s customisable.
You won’t waste time digging through paperwork and spreadsheets!
3. It gives you a running history of your business
Accounting software makes it easy to form realistic and achievable goals for your business. With a software program you have the ability to view financial history, track progress and plan ahead.
Most accounting software will allow you to create reports which can help track your business and set goals for the future. There are the standard reports available, ageing summary, profit & loss statements, but you can make custom reports too.
Looking at past records can help you plan cash flow. By comparing your businesses income and expenses from one year to the next, you can project cash flow.
Having all of this information about your business at the click of a button can really help you to meet your targets and goals. By having this information on hand you can focus on growing your business.
4. It simplifies tax filing
Disorganised records can cost you when you file your accounts. If you hand over a box of receipts and invoices to your accountant still, it may be worth looking into getting accounting software.
Incorrect or missing information on your tax return could land you with fines, penalties and possible legal issues. If your accountant charges you by the hour, you will pay extra for the hours spent making sense of your records. With this, it’s easier to miss out on deductions that your business is eligible for.
Accounting software keeps your business transactions organised. Your accountant can easily access your books to complete your tax return. Your accountant will also spend less time sorting through your paperwork and more time getting you better tax benefits.
2. Your accountant can access all your records.
As mentioned in 4, your accountant can have access to your software. You can usually invite them as a user through your profile. This is Brilliant! However savvy you are on your accounting software, giving access to your accountant will definitely save you time and money.
You can have your accountant do as little or as much as you like. If you’re really good at keeping track of your invoicing and payments but not so good with expenses, your accountant can help tidy up the books for you! They can file your vat returns for you or just review them. Having accounting software that your accountant can access makes the whole process more flexible.
Having instant access to your records your accountant can be there to help you grow and strategise your business.
So…there you have it! Our top 5 reasons why you should use online accounting software.