You may consider accounting software for your small business unnecessary or a waste of precious capitol. As an owner of a small business, your time and money are precious commodities. And, while you may think accounting software will have little or no benefit because of your lack of knowledge about it, the fact is that such software can save you both time and money. Below are 5 reasons to consider accounting software for your small business.
1. Record Keeping at the Click of a Button
Rather than write down every business transaction, accounting software will permit you to download activity with the click of a button. Even if you would prefer typing in activity by hand, doing so is much faster and easier on a computer, especially since most accounting programs maintain a memory of frequent transactions and will recall those transactions with only a few keystrokes. The ease of putting transaction information into a computerized ledger will save you time and permit you to focus your efforts elsewhere, such as on obtaining new clients.
2. Easy Tax Preparation
Preparing your businesses' taxes come tax season will be easier with accounting software. Some accounting software programs are designed to be compatible with other software programs that will prepare and e-file your taxes. This means that you will have to do very little work to prepare the company's taxes. If you hire an accountant to prepare your taxes, printing out the reports she will need is as easy as a click of the button. Many basic reports, such as the company's income, expenses and salaries paid, are pre-programmed into the software prior to your purchase.
3. View Where the Money Goes
As a small business owner, you must keep a close eye on your company's cash flow. Accounting software enables users to divide up transactions into different categories and run different reports all with a few clicks of the mouse. This means that at any time you can view where and how your company is spending its money. Possibly, this can lead to you reducing overhead or restructuring your businesses cash flow to a better, more productive system.
4. Inexpensive Cost
With the number of users on the rise and competitors offering comparable software, the cost of accounting software has decreased significantly in the past few years. This means that the investment is truly not a large one and, most likely, one your company can afford. Additionally, many software programs come with warranties and a year or two of free upgrades available through Internet downloads.
It must be noted, though, that as the number of users of these software programs increases, more and more banks are charging fees for downloading transactions. The typical fee to access bank transactions through accounting software programs is $5.00, and so this amount must be added to the total cost of the product. However, this small cost can be more than recouped by how simple it will make other aspects of running your business.