Mohammad Khan Yusufzai is Masters in Management, specializing in Economics, Finance and Marketing, with corporate & lectureship exp.
Upgrade your business to OnlineCheckWriter.com and automate the entire payment and accounting procedures of your business for a seamless experience.
Like most business owners, you too might have started with a spreadsheet to track your finances. It seems like a good idea at the beginning. But with your business growing, it has become almost impossible to track and record every single transaction through manual updating of your spreadsheets. That’s why accounting software are so popular nowadays.
Accounting software allows you to record and categorize financial transactions. Popular solutions such as OnlineCheckWriter.com even allows you to pay bills, issue client invoices, handle payroll, and run centralized common reports right from the platform. Large businesses often use specialized accounting software, including customized accounting software or enterprise resource planning (ERP) software. Whereas small & medium businesses and startups prefer solutions like Online Check Writer or Quickbooks, to easily manage all their accounting requirements.
Benefits of Accounting Software
Accounting software costs, as well as the technical knowledge necessary to perform accounting, can be too challenging for certain firms. But keep in mind that accounting software isn't only for accountants. They are specifically made so that it is easier for everyone to do the necessary book-keeping. The benefits of accounting software much exceed the challenges of getting started.
1. Accounting Software saves Time
It takes time to set up accounting software, just as any new software system, but once you do, this will save you hours of labor each week by automating time-consuming manual accounting and bookkeeping tasks. To review your transactions, you won't have to import Data files from your bank or credit card accounts and painstakingly enter the data into your spreadsheet. Accounting software automatically gathers all of the data for you
2. Instant Financial Reports
No more waiting for your monthly reports to be prepared by your administrative assistant: Built-in reports in accounting software systems are automatically updated. You can get your Profit & Loss Statement (or Income Statement), Balance Sheet, and Cash Flow Statement with a single click, revealing crucial information like revenue and expenditures for the month, quarter, or year. If you have more particular reporting requirements, you can generally tailor reports by filtering the data or providing additional detail, and then store them to run again later
If your data is spread across many platforms—Multiple bank accounts, credit card statements, and payroll services—collecting the information you want might take hours of back-and-forth between them. Accounting software will use an API to sync data from all of your online accounting tools, so you won't have to download financial data from each source individually and spend time entering it to create a full financial record.
4. Accounting Software Offers Greater Accuracy
In case you make any changes to your records, you don't have to manually update various cells across several spreadsheets. Instead, accounting software will automatically update any modifications you make to your financial statements and reports, ensuring that your data is error-free
5. Accounting Software creates Professional Financial Statements
When you start getting inquiries for financial statements from outside sources, it's critical to produce professional-looking paperwork rather than do-it-yourself versions. The financial statements you present with potential investors, in particular, must be precise, appropriately prepared, and delivered on time. If they aren't, they will provide an unfavorable image of your financial situation, and you may lose out on opportunities. When requests come in, accounting software generates financial statements in standardized forms that are available to download and share
6. Easy Payroll Management with Accounting Software
While you'll eventually require a dedicated payroll system, many small firms utilize accounting software to manage payroll while they're still expanding. You can automate payment of salaries to employees, estimate various benefits such as healthcare and insurance amounts, and acquire correct payroll tax information with the help of accounting software
7. Provides Meaningful Insights of your Operations
Accounting software can be used to track each department, project, location, or branch separately. If your organizational chart is correctly set up, it will help you to efficiently monitor your business operations. Thus you can develop more detailed reports and make strategic decisions. Proper accounting gives you a clear view of where your money comes from and where your expenses originate from
8. Easier Handling of Taxes
Your tax accountant will find it easier to prepare your return and compute possible tax credits if you have standardized financial statements and correctly classified data. Modern accounting solutions offer Specific tax reports (for example, sales tax and payroll tax)
9. Proper Management of Inventory
Basic inventory management tools are included in some accounting software platforms, and they automatically update to show the number of each product you have on hand, what's been sold, and when you need to restock. Instead of depending on error-prone human data input, accounting software is a simple method to acquire accurate, real-time information on your stock levels.
When should you Upgrade to Online Accounting Solution?
Ideally, you should establish proper book-keeping procedures from the first day of your business. However, most businesses adapt Online Accounting solutions as soon as the number of transactions they are dealing with becomes too much to manually record.
Also, if your business is starting to get a lot of information requests from 3rd parties such as investors, suppliers, vendors, etc, then it is also the right time to adapt online accounting in your systems
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2022 Mohammad Khan Yusufzai