If you’re still using spreadsheets or paper records to manage your business finances, you’re missing out on a lot of benefits that accounting software can offer. If you are serious about growing your business then having accounting software is imperative.
What is accounting software?
Accounting software is a tool that helps you track your income and expenses, create invoices and reports, and comply with tax laws.
In our practice we use and recommend Xero and FreeAgent but pick any of them and you are way better than any spreadsheet. The usual price is around £30 per month but can vary between £5 and £50 per month depending who you use and which functions you need for your business.
There are many free options and all are secure and easy to use. Free software may have a limited functions but still perfectly capable to manage a small business.
What are the benefits of using accounting software?
Without going too deep into the obvious here are five reasons why you should use accounting software for your business:
- First and foremost it will save you time and money. Accounting software can automate many of the tedious and repetitive tasks that you would otherwise have to do manually or hire someone else to do. For example, you can set up recurring invoices, payments, and reminders, sync your bank transactions, and generate financial reports with a few clicks. This can save you hours of work and reduce the risk of errors, which can lead to costly penalties or audits. Not to mention that your accountant will charge you less for well-kept records.
- Gain insights and grow your business. Accounting software can help you analyse your business performance and identify opportunities for improvement and growth. You can use accounting software to create dashboards and reports that show you key metrics like revenue, expenses, profit margin, customer satisfaction, inventory turnover, and more. You can also use accounting software to compare your results with industry benchmarks and competitors.
- It integrates with other tools and services. Accounting software can connect with other platforms and apps that you use for your business, such as e-commerce, payroll, inventory, banking and more. This way, you can sync your data across different systems and access it from anywhere.
- Enhance customer satisfaction and loyalty. Accounting software helps you provide better service to your customers, by allowing you to create professional-looking invoices and receipts, send payment reminders and thank-you notes, and offer online payment options. You can also use accounting software to track your customer history, preferences, and feedback, and use this information to tailor your products and services to their needs. By improving your customer experience, you can increase your retention and referral rates.
- Stay compliant and secure. Accounting software helps you comply with the latest tax laws and regulations, by automatically updating the tax rates and rules for your location and industry. Although the advice from an accountant is irreplaceable, you can also use accounting software to generate tax reports and file them online with the HMRC.
In conclusion.
The list can go on and on but it is clear that for those five reasons alone, accounting software is a valuable investment for any business owner who wants to run an efficient and profitable business. It will make your life easier as a business owner. It will help you manage your finances more efficiently and effectively, and give you more time to focus on growing your business.
If you’re ready to make the switch, please get in touch we’ll help you find the best solution for your needs.