Best Accounting Software Tips for 2019
The best accounting software solutions aim to minimize the time spent on routine activities and reduce the chance of errors. As a small business owner, time is probably the most critical resource you have. With limited funding and human workforce to work with, entrepreneurs usually end up tackling multiple business aspects on their own. However, getting through all of the accounting and finance tasks on a daily basis is no easy feat.
That’s where an online accounting software can prove invaluable. Here, we’ll share some information on why accounting software is a worthwhile investment. Then, we’ll offer some top tips for how a few key accounting software features can enhance your business.
What is accounting software?
Accounting software for small business tools is primarily meant to help users save time. It makes it easier and faster to complete routine accounting and finance activities. The software also stores records in a convenient and easy-to-access way. Simultaneously, it dramatically reduces the chance of errors in the process.
In a recent study conducted by The Association of Accounting Technicians, the respondents identified accounting software automation and cloud storage as the primary drivers of success in the field. This is no surprise, as technology has always aimed to streamline business activities. This allows businesses to better manage routine activities and focus on development.
Moreover, over time, accounting software tools have gotten easier to use. The level of skill and expertise required to use them continues to decrease. In fact, some of the best accounting software providers have developed their tools so that even people with zero accounting background can use them from day one. One example of this is Freshbooks. This solution was designed specifically for small businesses without accounting expertise. Its primary focus is on streamlining time tracking and invoicing.
Now, let’s take a look at some tips for enhancing your business with the help of accounting software:
Save time and effort with automation
The uncontested leader of all the best accounting software solutions, automation is your best ally. Every accounting tool uses some degree of automation to simplify various processes. This includes functions ranging from primitive tasks to complex assignments. Your accounting software automates detail-oriented tasks such as time sheets, payrolls, administrative expenses, purchases, payments, invoicing, tax filing, etc. For example, one of the best accounting software tools, InfoFloPay, offers automation of invoices and notifications, suggests transaction matches, and automates purchase orders.
Getting paid on time is crucial for the success of any small business. Anything that heavily impacts the bottom line is deserving of your attention. With the help of accounting tools, you can automate the creation of both one-time and recurring invoices. You can even do it based on specific customer requirements. The tool even lets you schedule them via email on the date(s) of your choice. Moreover, the client management tab will show the amount that you’ll receive after an instant calculation of taxes.
Most online accounting software can also help you automate payment processing. You can do this either with a built-in feature or a third-party integration with payment processors. You can use the tool to automate such tasks as bank payments, direct deposits, and printing checks for various purposes. Automation frees you from endless mathematical calculations so you can dedicate more time to important matters.
Manage taxes efficiently and error-free
Tax regulations are always subject to change. Plus, there are various unique state and federal laws that your business has to comply with. Otherwise, you may expose yourself to penalties and unnecessary losses of funds. The best accounting software solutions help you manage these compliance matters easily. This is because accounting software service providers constantly update their tools.
Also, values like the tax for sales, payments and employee payroll are calculated automatically. More often than not, an accounting software has a database containing the most recent tax forms. You can check it whenever you receive automated notifications of recent changes in the system.
You can also effectively manage your payroll system with the help of online accounting software. This feature allows users to process employee payrolls, automatically pay taxes, create legal and tax reports. It even lets you pay employees by transferring funds to their bank accounts. These tasks are very time-consuming and error-prone when done manually, leading to avoidable mistakes and confusion.
Combined, the automation features of online accounting software reduce the risk of being penalized for late payments. They also help you keep records accurate and compliance timely regardless of how strict the regulations are in your region.
Seamlessly manage fixed assets and inventory
If your business has multiple assets in different forms, accounting software solutions can help. They’ll help you stay on top of tracking assets for financial accounting, do preventive maintenance, and improve theft deterrence. The tools automatically track the location, quantity, condition, and the depreciation and maintenance costs of all your company assets.
The inventory management feature allows you to keep on top of all the information about your store’s products. Everything from overstocking to outages, orders to deliveries, and sales numbers to inventory levels can be tracked with online accounting software. This data can be used to create a digital map of your inventory, saving lots of time and money.
Manage finances on-the-go and keep your data secured
Mobile apps have long become a standard feature offered by the best accounting software solutions. For example, Zoho Books, an industry-leading, easy-to-use online accounting software for small businesses, offers an app for iOS, Android, and Windows. Mobile apps give users the flexibility to access their finances anytime, anywhere. They also foster client, vendor, supplier, and team communication. This is because you can instantly update all parties on any critical changes the moment they take place.
The best account software vendors offer users a centralized server to store their financial information with different levels of security. These encrypt your data and protect passwords while giving you the flexibility to grant different levels of access to coworkers. The servers usually have DDoS attack and spam protection as well as backup and recovery mechanisms. Finally, if you have firewalls and anti-malware systems installed at your workplace, you can certainly work the service provider to make them compatible.
The tips we mention here are only the very beginnings of how online accounting software can enhance your business. While there are a lot more benefits to using accounting software for small businesses, they vary based on the vendor. However, the ones described above represent the core values that any industry-leading brand will offer. The best part is, you don’t need to be a skilled financial expert to take full advantage of all the features. A simple walkthrough or a quick 15-minute demo will be more than enough to get the hang of things.