As technology is reshaping the global economy, businesses are being pressured to become more efficient, agile, forward looking and adapt faster. Many business owners are not able to fully grasp the financial fundamentals of their organisations due to lack of sufficient reporting and tracking of transactions. In reality, it is vital to know where your business is heading so as to create a successful venture. We need to be aware that information has to be timely and accurate for it to be truly valuable.
For some businesses, using spreadsheets or even handwritten ledgers will suffice. For most, accounting software make it the better choice because of its ease of use and the efficiency it generates. In fact, when you use accounting software right from the start, it sets your business up for success down the line. It is far more beneficial to begin using accounting software from the first day than to implement one after months, or even years, of using spreadsheets. However, it is always better be late than never.
As such, we summarised here on why accounting software is beneficial to business owners.
Benefits of Accounting Software
Accuracy – Accounting software can significantly reduce human errors made in the financial transactions. The data-input points in most software will correct or ask for confirmation if something appears to be entered wrong. This feature alone can save hours of labour in reconciliation.
Speed – By automating most of the recurring transactions or functions, the time taken for producing the same result is greatly reduced. The time save can be spent on more value added activities, such as analytics, planning and forecasting.
Cost – The benefits resulting from the speed and efficiency of accounting software often go hand-in-hand with reduced overall costs.
Mobility – Cloud accounting software is particularly useful for business owners who are always on the go and are too busy to sit down and manage the books at a computer, because you can use your accounting software anytime, anywhere on your mobile phone or tablet.
Decision Making – Most accounting software have reporting functionality. This allows the company owner to assess the present state of business at any given point, with just the click of a button. The enhanced flexibility of having precise data enables the user to make informed financial decisions. Computers haven’t taken over the role of accounting and even though someone still needs to input the data, extra time can now be spent on analysing reports and data.
Tax Compliance - Many businesses find themselves rushing through their indirect tax and direct tax returns when due dates are nearing. Many accounting software has integrated tax compliance functions within the software, so as to ease the preparation of returns for submission.
Having listed the benefits of an accounting software above, you may now be more convinced that an accounting software will help you as a business owner to save time and better manage your finances which in turn save you costs, improve in your efficiency and ultimately let your business grows effectively.
So which accounting software should you choose? Here are three questions to focus on when selecting one for your business:
1) How much are you willing to pay?
2) What is your main purpose of getting an accounting software?
3) Which features in an accounting software does your business requires?
At Biz Square, we offer 2 accounting software. QuickBooks Online and MYOB. Both accounting software have their own pros and cons, therefore it really depends on your business needs. Click the buttons below to find out more or get in touch with us now at +65 97515871 or Solutions@BizSquare.sg for guidance on which software best suits your business!