Not every small-business owner has accounting skills, yet accounting is a necessary part of every business. If you’re struggling with this task, it might be time to consider using accounting software. Keep reading to learn how other small-business owners put accounting software to work for their business.
12 Reasons Business Owners Say to Use Accounting Software
1. Improving information accessibility
All of the important data is stored online and you can access it anytime anywhere. Also, software has pre-made templates you can use even if you’re not an expert in accounting. A lot of the processes are automated, which saves time significantly. I have experienced the importance of having everything online during the pandemic since we were all remote and couldn’t meet even for the simplest tasks.
-Nick Chernets, CEO of Data for SEO
2. Being ready to scale
Accounting software was something that I decided to invest in on the recommendation of an entrepreneur friend of mine who said I would be glad to have it during the scale-up stage of my business, when it would seem like I would have no time for anything other than meeting with clients and investors. He was absolutely right. My favourite part about accounting software is how easy it makes expense monitoring; I don't have to worry about my bookkeeping come tax time, and I know where every penny is going as well as its origins when coming in.
- Trevor Larson, CEO of Nectar
3. Informing the price for services
One of the unexpected benefits of using accounting software was helping clients determine their pricing for services. In one situation, I was working with an interior designer who had been charging the same fees for nearly 40 years. She sought out accounting services because [she] wanted to be able to hire a full-time employee so she could take summers off to travel.
After running a few reporting scenarios in the accounting software, it became abundantly clear to her that in order to design a business that supported her lifestyle, she was going to have to give herself a raise! Within three weeks of working together, she charged $9,200 for a project that she normally would have charged $4,500. By the summertime, she had a new hire and was spending three months in Europe.
-Danetha Doe, Founder of Money and Mimosas
4. Increasing earnings
You can get up-to-date reports on customer payments with accounting software that focuses on invoicing. The reports can tell you which consumers owe you money and how much they owe you. This might assist you in efficiently managing and controlling your finances. You might request that late-paying customers speed up their payments to reduce losses. As a result, accounting software can offer you accurate information on payables and assist you in increasing earnings.
-Martin Seeley, COO of Leaf Gutter Guards
5. Maintaining inventory records
Many excellent accounting software solutions can now maintain product inventory and provide up-to-date statistics on the amount of stock in hand, according to recent accounting software developments.
They may keep track of inventory while product orders are being processed automatically. Furthermore, they can predict when you are likely to run out of goods, allowing you to place further orders ahead of time. As a result, this inventory tracking feature can provide precise information while also saving time.
-Erick Riddle, Founder of Driven Wheels
6. Streamlining processes
Using accounting software has helped us to be more efficient by streamlining the collection of information. We were able to eliminate some expenses like data entry, and now we have a clear picture of where our business stands at any given point in time.
Accounting software saves us a lot of time previously spent on reporting and tax filings and additional training required for handling more complex processes. As a result, my partner and I can spend this extra time working on other important company priorities.
-Megha Barot, Founder of KetoConnect
7. Decreasing a company’s liability
Since software is made by trusted professionals, you don’t have to rely on your interpretation of laws and legislations and fear you might be missing something. That said, you can easily avoid paying hefty prices for unintentional mistakes.
-Emma Miles, Co-founder of PawsomeAdvice.com
8. Providing a sense of safety and security
Using accounting software has allowed me to feel safer about my business' financial data. Sensitive data regarding business finance is important to keep safe and secure. A lot of accounting softwares have security protocols in place to keep all information encrypted and properly backed-up to reduce the risk of any sort of cyberattack or data loss. For small businesses, a data breach or cyber attack could have a major effect on productivity, revenue, and reputation. More protection is always a good thing!
-Kristen Boling, Founder of SecurityNerd
9. Reporting on the road
I don’t like paper. It clutters up the office, or more often my car, and it’s easy to lose track of. Accounting software that lets you photograph receipts makes it much easier to keep track of expenses. This is especially true when you’re on the road. Nobody wants to be traversing the country with their back pocket stuffed full of receipts.
Real-time accounting has its advantages. I think it’s useful to view the month as a whole instead of opening up the books on random days. However, sometimes you just need to check a number quickly. Accounting software with real-time updates makes this easy.
-Rick Hoskins, Founder of Filter King
With plans starting at $15 a month, FreshBooks is well-suited for freelancers, solopreneurs, and small-business owners alike.
- Track time and expenses
- Create custom invoices
- Accept online payments
10. Enhancing environmental consciousness
We originally used accounting software to increase the accuracy but we did not expect to also be able to save paper and storage space from having to note down or print out our statements to make sure that we have records. We don't have to dedicate storage space to paper financial records. It's also a lot more environmentally friendly.
-Shawn Plummer, CEO of The Annuity Expert
11. Gaining efficiencies in integrations
My personal #1 unexpected benefit is the opportunity to integrate accounting software with other business suites, procurement management, and billing solutions in my case. Connecting an accounting system (e.g., QuickBooks) to such software eliminates manual data entry by automating order and invoice processing.
From my experience, the integration approach decreases human error probability, increases the workload speed by 300%, and frees loads of time for the accounting team.
-Andrew Zhyvolovich, CEO of Precoro
12. Improving collaboration with accountants
Previously, I used to get into many arguments with my accountant with regards to late receipts, tax filing inefficiencies and payroll problems, among other issues. Ever since I installed accounting software, all these worries have been put aside. Since all my finances are now organized in one central location, my accountant’s job has become much easier, and our collaboration has become very efficient.
Since the software allows my accountant to have access at all times, all the tedious tasks that used to take days are now completed within hours, freeing up time to concentrate on the more important everyday tasks, such as billing and inventory management.
-Neil John from One Computer Guy