Are you still using the pen, paper or spreadsheets to manage the accounts of your business?
If yes, then we will provide you with solid reasons to switch to accounting software.
Accounting is an integral part of your business. It needs to be handled smartly. Accounting software will help you in this process.
Below is a list of 10 surprising reasons to adopt accounting software.
- Speeding- up the process – In the prevailing fast-moving business conditions, you need to be quick. Accounting software helps you manage your accounts and transactions quickly and responsibly.
Long calculations will not take your valuable time anymore. Just a few clicks and it will be done. This provides you with more time to spend on other important aspects of the business.
- Intact cash management- You can keep a track of all the receivable and payables as and when they occur, using accounting software. This will help you have a better idea of the present cash flowing inwards and outwards from the business.
You will come to know whether your inflows are adequate enough to pay your invoices and bills or not.
Accounting software will also reflect the dates of the bills to be paid. It will save you from unnecessary paying any late fees or overdraft charges.
- Better organization – Manually storing the accounts data requires a lot of paperwork. These paper can be misplaced or lost.
Using accounting software will help you provide better storage for data. You can store data from many units at a centralized location.
You can review and make amendments in data easily. You can use the stored data for future reference. You can easily search a particular data.
The modern accounting software store all the data with a high level of security.
Keep upgrading the software from time-to-time. This will save your data from any upcoming threats and bugs.
- Cuts-down mistakes and retyping- In manual accounting the possibility of error is high. Whereas if you use accounting software, it is less.
In an accounting software, all the calculations are done automatically and accurately. You do not need to write all the information and formulas every time. Enter the data and apply formula once. It can be applied automatically whenever required.
- Accounting on the move – Need to go out of the office for some work and worried about account management? Accounting software is available to help you.
There are many accounting software which is cloud-based. Using this you can manage your accounts from anywhere, on any devices. So, no matter where ever you go, you can update and be updated about your account data.
- Regular Monitoring – In the manual accounting system mostly all the important calculations and work is done at the end of the financial year. For instance, calculation of tax, preparing reports, etc. If you require such data in the middle of the year, it becomes a tedious job.
Accounting software helps to cut down the above-said hindrance. It provides you with all the reports and calculations at any time, throughout the year. Now, you can use the data as and when needed.
- Chasing invoices- Accounting software will reflect all your customer’s invoices which have to be paid by them. You can keep a better track of these invoices.
You can provide a certain rebate to the timely payers. This will earn you goodwill. It will also drive them to be more timely next time.
You can ask the late payers to pay on time. You can provide certain discounts and schemes to urge them to pay fast. This will help you get cash on time so that it can be invested in business purposes.
- Tracking inventory – Accounting software can help you keep a perfect tracking of inventories.
Whenever a product sales order is raised, it will automatically subtract it from the inventory in hand. It will give you a perfect idea of the available inventory in stock. This will help you take actions regarding your purchase of inventory. This will help you to never have shortage or run out of stock.
- Better compliance of rules- The tax policies, rules & regulations, accounting patterns, etc. are subject to change on regular basis. Your accounting software will keep a track of all these changes.
You do not have to worry about manually making changes regarding these calculations. The software will automatically update itself to keep in pace with the prevailing changes.
- Eases expansion and is customizable- The accounting software available nowadays are easily scalable. It is smart enough to cater to your needs for expansion.
You can manage data from your any number of offices in different locations from one location. No matter how far they are.
The accounting software can be customized to suit your particular business needs. You can have required database, invoicing options, banking options, etc.
Hope the above reasons are enough driving factors to make you utilize accounting software.
Make a survey of the accounting software available in the market. Choose the one which best suits your business conditions. Apply. You will definitely like the way it handles your accounts.
Divyanshu Jangid is a Editor at Hyper Drive Solutions. His interests include reading books, researching and reading about new technologies . When he’s not working, he enjoys spending time with his family, friends and playing billiards.