Accounting was once a practice of hunching over a desk, surrounded by stacks of papers and calculators, trying to make the numbers work. Even though most businesses have at least moved their accounts from paper ledgers to spreadsheets, many are still spending more time and money than they need by not investing in accounting software. While it may sound counterintuitive to spend money in order to save it, investing in accounting software has many long-term benefits for your business – financial or otherwise.
Automate time-consuming tasks
One of the biggest advantages of accounting software is that it automates many of the repetitive, time-consuming tasks that could be taking you or your accountant hours or even days to complete. If you’re finding your time taken up by invoicing, logging transactions, reporting, and budgeting, you need an accountancy software tool that can do all of this for you. The extra time you’ll have once these tasks are automated means you can focus on the areas of your business that actually drive revenue.
Cut labour costs
It’s possible that you are doing your accounting yourself or you may have hired an accountant to do this for you. With the right accounting software picking up the slack, you won’t need to spend as much money on salaries either for staff that must replace you while you balance the books or for your accountant. Some businesses don’t need an accountant at all once they start using accounting software, while others find that their accountants are more effective and can get more done in less time.
Reduce the chance of error
We all make mistakes, but mistakes made in our accounting can be disastrous for our businesses. The last thing you want is an audit because a number was typed in wrong. Accounting software significantly reduces the chance of error since everything is automated. No more Excel sheet miscalculations or formula errors.
View real-time reports and analytics
Trying to get a glance at your business’s finances so that you can plan for the future is incredibly difficult if all of your accounts are managed on paper ledgers or a complicated spreadsheet. Dashboards and real-time reports and analytics enable you to view your finances at any stage. This makes planning, budgeting, and forecasting easier and more accurate, making it easier for you to cut costs and increase revenue in the future. It also means you can review your accounts more regularly – a must for businesses if they want to keep ahead of their finances.
Secure data in the cloud
System crashes, corrupted files, and lost paperwork can be detrimental to your business’s financial health. Nowadays, however, businesses that use accounting software have all of their files and records kept safely and securely in the cloud. Not only does this mean you can access your accounts from anywhere, but it also removes the chance of files getting lost or being corrupted. Business owners can breathe a sigh of relief that their important tax documents won’t get lost in the shuffle or destroyed in a computer error.