Why Does Your Small Business Need an Accounting Software?

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Despite the digital revolution taking over the business world, some small businesses remain hesitant to embrace technology. The comfort of older ways combined with the fear of trying newer ones prevents them from considering the need for an “accounting software”.

To undestand the need for an accounting software, we would like first explain what is an accounting software. Basic accounting can be handled by a pen and a notebook. Everything purchased or sold has to be recorded. This information is used to construct financial statements and obtain insights that can help the business increase efficiency.

An accounting software automates financjal. Obviously, a software will not offer the same expertise as an accountant but it can create financial statements and help you obtain insight through its immaculate organization of information.

The power of automation should not be taken lightly, especially for small businesses. As a small business, you are already running a tight ship and every operation is tied to a financial constraint. For bigger businesses, success might be synonymous with ways to cut costs, save time, and maximize efficiency.

However, for small businesses survival is synonymous with the same.

If so, then wouldn’t an accounting software increase costs? Well, not necessarily. But this concern is one of the prime reasons most businesses resist technological change.

To help your small business make a logical decision regarding its accounting needs, we will address the main inhibitions preventing your business from incorporating an accounting software.

Financial Constraints

 Like we previously mentioned, financial constraints are a key concern for all small businesses. However, when this concern becomes fear, it can prevent growth rather than spurring it. Although most accounting software do have a cost attached, the cost is minimal and the benefits far outweigh the cost.

Being acutely aware of the movement of money within a business requires careful monitoring. The opportunity cost of manually monitoring the flow of money is time and effort elsewhere, ideally something that requires creativity. Just think of the time you had to spend hours manually inputting invoices in an excel sheet. Or the time you frenetically looked for your receipts to file taxes. These ordeals eat up valuable business resources.

Outsourcing these ordeals to a digital employee like a software would mean not only saving time but also a significant source of stress. In fact, by making your life considerably easier, an accounting software works around the financial constraints you face as a small business.

In addition, you do not even have to purchase a software, Wave, SlickPie, and ZipBooks are highly capable software that you can use for completely free.

The Comfort of Older Ways

You might be convinced a software is superior to traditional ways yet you still prefer the latter. This doesn’t make you stupid. It makes you an honest human being. Human beings are averse to change no matter how appealing it might seem because certainty of older ways brings comfort.

You might also argue traditional ways offer a kind of freedom that you just would not have with a software. You can make infinite categories based on your setup.

accounting software offer a solution to these problems by providing a wide array of customization features. Before you even add information, accounting software allows you to categorize your information based on different departments, manufacturers, and even create custom categories.

You also have the freedom to access your financial information from anywhere anytime using the internet. Being a cloud-based software, accounting software is accessible through any portable device. Considering the same freedom offered by a software, would you not agree that your comfort might be misguided?

If you go on to look at what a software can do that you cannot do on your own, it would become uncomfortable to continue with older ways.

Documenting financial information can occur in many ways. Creating a database of goods sold and bought is something any basic software can handle. However, creating graphs depicting the financial picture of your business surpasses the capability of any basic software. accounting software dedicates an entire dashboard for displaying different graphical depictions of your business e.g. a cash flow chart. This allows you to instantly understand the financial situation of your business.

Talking about instant processes, accounting software Optical Character Recognition feature (OCR) allows you to create 100x invoices simply by scanning a single one. You can use any invoice you might have previously used and use it to create customized newer ones. Describing the time and effort of doing this manually is beyond us. With a software the entire process is reduced to mere taps on a screen.

There are only two constraints to shifting your accounting needs to a software: finances and freedom. By being completely free of cost and providing you the freedom to customize, accounting software eliminates both these constraints, leaving you no valid reason for not using an accounting software and helping your business thrive beyond the limits of traditional ways of accounting.

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