The 7 Functions An Accounting Software Can Do for a Small Business

Running so many businesses out of their own little space in the world can make it hard for someone who owns a business to keep track of all their finances. So many different apps and programs run these financials and accounts, but not everyone can afford these high-end solutions. A lean company might want to branch out on its own without having to pay an exuberant amount of cash to do it. Since there are many accounting software options for small businesses, we decided to look at the seven functions of accounting software for a small business.

1. It Gives Your Business Credibility with Accountants

Accounting software isn’t something anyone can run out and buy because not only do you need the right kind of knowledge about how to make it functional, but you also need some basic understanding of accounting principles. This makes most accountants happy because when they see someone using good accounting software for their small business, they know what they are doing when running a company’s finances. Get training on Xero about using Xero Accounting Software and how it can benefit your business. Knowing this will keep any accountant from trying to run your small business, and it will give you credibility when you need to get your books overseen for taxes or other issues.

2. Invoicing Software Keeps Track of Your Invoices

Nothing is more annoying than keeping track of invoices when you run a business. Receiving payments can be tricky because tracking them all down isn’t very easy when they’re in pieces in different parts of your house or office. These invoices get lost and mixed up so often there are even people who will take an older invoice, copy it, change the date, and use it again. The best way to do this is by keeping all your invoices in one place without losing sight of them or mixing them in with other bits of paperwork. With accounting software, you don’t have to worry about losing any documentation because it’s backed up on their servers which are much more secure than trying to back things up at home.

3. Expense Tracking Software Keeps You Honest

The following function an accounting software does for a small business is something many don’t think about but should. Expense tracking software lets you see where all your money goes to precisely what is being put into the company and what isn’t. This means that when tax season gets closer, you won’t have to worry about where all the money has gone because you can easily see it in one place rather than rummaging through old documents and receipts trying to find everything. Good software helps you figure out how to slash costs that don’t make sense for your business’ spending, like unnecessary membership fees or subscriptions.

4. Security with Automatic Backups

When your accounting data is on your computer, there is always a risk of losing everything because you never know when something wrong can happen to it. Your computer could crash, and all those numbers you worked so hard on could be lost forever if you didn’t back them up somewhere else or didn’t code them into something safe from an accidental delete button push. Automated backups are a huge plus for having an accountant manage your small business and keep everything safe. Good accounting software will automatically back up any changes made in real-time right onto its secure servers so nothing can ever get lost by accident again.

5. Reports for Taxes or Showing the Current State of Business

An accounting software’s last function for a small business is something you can’t live without as a company owner. Some companies might sell products and need to know what their inventory looks like at all times, while in some cases, it could be better to see comprehensive reports on how your company is doing financially. No matter what type of company you run, reports are necessary to show you where your small business stands so improvements can be made or any management changes can be decided upon. These reports don’t have to take long either because the automatic backups help ensure that they happen quickly and efficiently.

6. You Can Access Your Financials from Any Device

Now that you have all your financials in one place can be backed up and protected and ready for any report you need in accounting software that can easily give you this access with just a few clicks of the mouse. Everything is online, so it is much easier to work from anywhere or share information because there isn’t any extra stuff needed to help it work. If you’re considering a more integrated business management system, a Netsuite implementation could be a viable next step, as it combines various business functions including accounting, in one platform. You don’t need paper files anymore (be they saved on your computer or printed), which means no more losing track of anything ever again. A good piece of software works nicely on most devices like tablets or smartphones regardless of whether it’s iOS, Android, Windows Phone, or anything else that’s out there that could want to keep tabs on your business’ activity.

7. Accuracy and Security of Financials

When it comes to accuracy, accounting software can do something that no human accountant could keep track of for every transaction even if they had a photographic memory: record everything happening right then and there. A piece of good software records each transaction as soon as it happens with the accurate date, time, amount, price, tax, and a discount percentage if needed. Unlike humans who would need to wait until your next day in the office to fill out these forms or review their files to even have a chance at accurately recording what happened. On top of this, accounting software is highly secure because it has a good firewall protecting the information from people with bad intentions who want to damage your small business. Also, keep out those unwanted guests that could potentially harm your company’s data.

In the end, having accounting software do these seven functions for a small business is a win/win situation. You get accurate, secure information from the convenience of anywhere you have an internet connection. It helps those who don’t want to do the work themselves because of how hard and time-consuming it can be. Accounting software will save your business money and headaches by doing this without any supervision or input needed on your part.