What Stress Should the Best Small Business Accounting Software Alleviate for Founders?
Being a business owner has its perks, but it also comes with its fair share of challenges. Money-wise, entrepreneurs must account for every dime earned and spent at the close of each day or fiscal year, which can be challenging, especially without background knowledge of accounting.
Small business accounting software isn’t going to run your business for you. It will, however, allow you to track cash flow and run your business better so you can focus on the things that matter. This post walks through the features you should look for from a software (hint – if it’s bundled with essential services, you’re golden.)
Signs That You Need Accounting Software
Once you’ve been in business long enough (sometimes only a few short weeks), it reaches a point where manually keeping books isn’t viable anymore. You must either adapt or become buried in manual work. Some of these scenarios include when:
- Your business is growing: Admittedly, spreadsheets can work wonders during the initial phases of business budgeting. However, as the business grows, the financial responsibility increases such that it becomes physically and mentally challenging to keep up with demands. Accounting software helps manage all financial aspects, from invoices to cash flows and reporting.
- You need faster access to information: Business owners rely on data to make sound financial decisions. If the information required is in spreadsheets and paperwork, it may take longer to derive insights from the data, which creates a roadblock for the growth of the company. The best small business accounting software has the necessary tools to help you obtain detailed summaries of cash flow, profit, and expenses at the click of a button.
- You find increasing errors: Research shows that 88% of spreadsheets contain errors. If you’ve been manually recording and updating financial data, including the date, customer name, invoice number, and amount, the room for error is significant. Cloud accounting software, unlike humans, is programmed to perform complex tasks repetitively without getting tired or making errors.
Features to Look for in Accounting Software
The features to look for in accounting software depend on your business’s financial responsibilities. More complex operations require sophisticated technology that’s also easy to use. To be on the safe side, always prioritize:
Every business has different financial obligations and goals. As such, the best software should cater to the unique needs of your business without overcomplicating the process. This way, you can analyze and manage information without restructuring or reimplementing software.
Business and market demands are constantly changing. Therefore, the software package you choose has to cater to your present needs while also considering future changes. All this to say, you need software that can grow with the ever-changing nature of your business as it grows.
When it comes to the cost of accounting software, it’s always best to stick to the side of caution. Don’t sign up for software that you’ll never fully utilize, as it can be expensive to service in the long run. Instead, pick a package that your business will fully benefit from, now and in the future as your business grows.
Numbers are crucial for any business, especially seeing financial figures in a useful format. You will want to identify a software that has simple and useful reporting capabilities.
Manually filing tax forms can be a struggle that is time-consuming. The right software package provides instant access to commonly used forms such as 1099 and 1096. Certain software can also assist with populating data and filing the forms electronically with the IRS.
Bonus: Account Management
If you have little time to spare or lack the technological knowledge of operating software, it may be difficult to manage software operations alone. In such a case, look for outsourced experts to manage the software for you as they can help prevent/solve problems you run into.
Issues That Accounting Software Helps Solve
Startups face many challenges that business owners must solve. The right accounting software lessens the burden so you can focus on other essential business tasks. Some of the issues the right software addresses are:
- Disorganized financial records: Can’t find a document in the physical or digital financial records? Accounting software puts all your financial information in one area – the cloud, which you can access anywhere with an internet connection.
- Cash flow problems: Accounting software keeps a detailed record of all business financial transactions needed during cash flow projection, whether unpaid invoices, bank transactions, or tax payments.
- Security issues: Paper can easily get lost, while computers may be hacked or damaged. The safest place to store financial information, especially with the increase in cyber security cases, is software with secured servers and encrypted data.
- Budget constraints: You will be able to track your business finances better to maximize profit.
- Numbers problem: Perhaps you’re not an accounting expert. Most software packages come with customer support that you can contact in case you have questions about the software.
- Time limitations: Cloud accounting software allows you to create and file forms within a short period, so you don’t have to waste any more time filing blanks and formatting documents.
Benefits of hiline Services
Besides accounting tools, some of the benefits you stand to gain after deciding to outsource your accounting to hiline include:
A Dedicated Accounting Team
With hiline, you get an entire team dedicated to managing your back office. This removes the burden of having to manage your accounting software. Everyone in our hiline crew is an expert in the software we manage for you. You can rest assured that your financial records will be in top shape. hiline is the one-stop-shop for all things accounting, HR, payroll, and more. Visit our website for more details on our accounting services or contact us for information regarding our services.
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