Many small business owners are aware of the importance of using accounting software. And then you have those who are stuck in the past, using a “pen and paper” system because that is what they have become familiar with over the years.
While there is no rule saying you have to use accounting software, once you make the change you may look back and wonder what took you so long.
Fox Business recently discussed seven of the top reasons to use accounting software. Let's take a look at three of the reasons why this is important for small businesses:
1. Organization. Let's face it: there is nothing worse than a business that doesn't have a strong grasp on its financial situation. With accounting software it is easier to stay organized, ensuring that you know where you stand at all times of the year.
Note: this also makes it easier on you come tax time, especially if you are handing your information over to an accountant. Accounting software should also integrate with your payroll service.
2. Easy input. Time is money, and for this reason you should do whatever you can to become a more efficient operation. With accounting software, it is easy to input information without wasting a lot of time. Can the same be said for those who have a paper ledger?
3. Accurate history. Did the company perform better this year than last? Did you add more clients than you lost? Do you know where you spent your money? These are the types of questions you can answer with the help of accounting software. Best yet, you have a history of every day, month and year dating back to when you implemented the system.
Your small business is not required to use accounting software, but with so many benefits, combined with a variety of options, it is an idea to consider.