If you are the owner of a small business, you may be wondering how accounting software fits in with your plans. You might be aware that most businesses are making the switch over from spreadsheets, but knowing when to take the leap can be tricky. Before you make any decisions, let’s explore exactly what this software is.
What Is Accounting Software?
Accounting or accounts software helps you to manage your books in one easy-to-use system. It can automatically calculate your taxes and display a clearer view of your income and outgoings. Some accounting software is even based in the cloud, offering additional security and easier access.
When You Should Make the Switch
Now you understand how accounting software can help you, here are some signs it’s time to make the change.
Your Business Is Moving Online
With the digital world constantly growing, it’s only natural if you’re leaning more and more towards eCommerce sales. When all your transactions are happening through the computer and your invoices are digital, it makes sense to invest in accounting software that can automatically process all of this activity.
You Can’t Keep Up
Sometimes businesses grow suddenly or without you noticing. Maybe keeping your finances organized with a spreadsheet was easy at the beginning when sales were just starting to trickle through. If you’re coming to a point where you’re spending a lot of time making calculations and processing payments, then it’s time to consider a helping hand. With accounting software, you won’t even need to outsource your finances to an accountant, allowing you to keep costs to a minimum if that’s what you need.
You’re Making Mistakes
Another sign that spreadsheets no longer serve you is an increase in mistakes. When your transactions increase, your books naturally become a much more complex document. If rows and rows of numbers are giving you a headache and formulas seem to be acting up, you should consider accounting software that will do all the hard work for you. You’re only human, meaning you’re bound to slip up sometimes when you’re working with so many numbers. Software accurately calculates your taxes and never puts a decimal point in the wrong place.
You’re About to Hire an Employee
When your small business has grown enough for you to hire staff, accounting software really is a must. You’ll be able to link up your payroll system alongside it and make sure your employee’s wages are being processed correctly. Once you’re responsible for someone else’s pay, you really can’t afford to be making any errors in taxes and costs.
You’ve Had Security Issues
Whether this involves forwarding sensitive information to the wrong employee or a cyber attack, any kind of security breach should push you to tighten up your defences. Accounting software needs to be accessed with a password, meaning only approved personnel can view your books. What’s more, it’s equipped with state-of-the-art technology to keep out viruses and hackers.
