Do I Need Business Accounting Software?
Accounting software helps you gather business insights and run reports efficiently. Learn how to find the right option for your needs.
- The benefits of accounting software include automation, data management, cost savings, report generation, and more.
- Steps to find the right software:
- Outline your goals
- Create a budget
- Run comparisons
- Watch or schedule demos
- Talk to an expert
Tax time can be one of the most stressful seasons for business owners. Without a dedicated accounting team member, it may be challenging to aggregate documents, follow every rule, and get things in on time. What’s more, taxes require consistent attention throughout the year, so reports are easy to run and understand, and you aren’t left scrambling to get tax paperwork in order.
A solution many businesses turn to is software integration. A good accounting software program can help you get your time back and stay on top of taxes. Here are the benefits of integrating this technology and a few ways to find the right platform.
The benefits of business accounting software
New technology may take time to learn. But modern software solutions are simple to master, and accounting platforms immediately take on a lot of time-consuming tasks so that you can focus on other aspects of your business.
Let’s break down the main benefits of accounting software:
- Automation: Accounting and bookkeeping processes can be done automatically, saving lots of time on calculations and data entry.
- Cost savings: Instead of paying a staff accountant or a contractor to do this work for you, you can save considerable money by allowing software to manage simple tasks.
- Instant report generation: Manually creating financial documents and reports can take significant time, and it must be done regularly and accurately. Software generates many of these assessments instantly and helps you make them look professional for investors and other third parties.
- Data management: Financial information exists in numerous locations. With accounting software, you can consolidate and manage data quickly.
- Easier payroll: Some accounting software platforms can also handle payroll, especially when a business is just starting. Automate tasks like employee payments and calculating paycheck withdrawals. The software also helps keep more accurate payroll tax data.
- Tax accuracy: Tracking financial data efficiently and utilizing automation helps streamline tax preparation and filing. And you can typically rest assured that everything is accurate. Many software solutions can generate tax reports in seconds.
- Better insights: The only way to know how a business is performing is to gather and analyze data. Accounting software helps you view important insights consistently, so you always know what’s going on and which areas need support.
If you’re struggling with bookkeeping and accounting, software integration can be a game-changer. After you’ve decided to automate, it’s time to find the best solution for your needs.
How to find the best accounting software
As with anything new you bring into the business, there will be a period of trial and error, and you may have to try more than one platform to find one that works best for you. Here are a few steps to getting started:
1. Outline your goals
Not all businesses need the same features in accounting software, so identify your needs to get started. What has been your biggest pain point? Which features aren’t necessary, at least for now? Create a clear list of goals for a new solution. For instance, maybe you don’t need any help with payroll but struggle to generate balance sheets consistently.
2. Create a budget
One of the most important factors will be the cost. Determine what you’re already paying for bookkeeping, if anything. Evaluate cash flow to see how much you could realistically spend each month on a software subscription. The great thing about software as a service (SaaS) platforms is that you can start small and scale up when your business grows. And most solutions are relatively inexpensive.
3. Run comparisons
There are numerous accounting software options out there. Make sure you compare options as you prioritize features and factors. For instance, maybe one platform seems to have much better customer support than another company. Or, one software allows for easier add-ons if you want to try new tools later on.
4. Watch or schedule demos
You may have no real idea how a program works until you see it in action. Many providers will meet with you one-on-one to answer any questions and give a demo; others offer online demos. Numerous brands also have online training videos you can watch at your convenience. Make sure to get to know the interface a little bit before making a decision.
5. Talk to an expert
If you’re overwhelmed by all your options for accounting software, consult with a tax expert or business advisor. Professionals know which platforms may work best for you and what to avoid.
Ultimately, an accounting software platform will make life far easier as a business owner. And remember that going with a monthly subscription for a SaaS platform will provide more flexibility without a purchase or long-term agreement.
The Provident CPA and Business Advisors team helps business owners with strategies and tax minimization, helping them grow while paying the least amount of tax legally possible. Reach out to our team to learn more about our services.
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