Ditch Your Spreadsheets, Upgrade to Online Accounting Software

by Creative Ideas Business Consulting

If you still believe in spreadsheet accounting, you need to take a pause & think about upgrading to small business accounting software. It improves accuracy, efficiency, effectiveness, & saves money.

As a small business owner weather, you believe it or not, you need to use the best accounting software to manage the financial transactions of your business. However, when you to the market you need to choose the one with care.

The web-based small business accounting software varies in scope. Some of them record financial transactions using the single-entry principles. While those used by the incorporated businesses must depend on double-entry principles. Choose something that will help you in taking care of your statutory compliance, ease taxation, and eliminate every type of manual calculations.

Small Business Accounting Software for the Startups

Think long-term and decide whether you need an online accounting software to handle the complete financial comings and goings of your small and medium enterprise or not. A startup owner should ask around for the advice on the most suitable system. It is important because they have the actual chance of recording their financial transactions from the day one.

Accounting Software is More Preferred than Spreadsheets

If you are in doubt which may happen if you are moving from the spreadsheets based accounting, take some pains to find out the accounting software works best for your business niche. What works for a construction firm may not necessarily work for the bookkeeping and accounting of a restaurant and vis-a-vis. Look for the best accounting software that will cater to your business needs as closely as possible.

Automating Your Accounting Processes

Upgrading to an online accounting software and automating your internal accounting process is a holy thing. The automation helps you save on the precious human resource, costs, and time. It also improves the accuracy of your accounting. It does away with the costly errors that are associated with the manual work because of the fatigue, the lack of concentration, and the sheer boredom of doing a repetitive and unimaginative task.

It is preferable to use online accounting software as it gives you anytime and anywhere access to your financial data. It allows you to base your business decisions on the latest data. It allows you to give emphatic commitments to your suppliers, creditors, financial backers, & clients.

Data Security

Some of the business owners have concerns about the safety of their data. However, these concerns are unfounded. The web-based accounting software remains loaded on the web-servers. It is where the software stores the data. It is protected using Security Matrix and the roles or the access privileges. Even though the multiple users have access to the same data, they get access to it on the need-to-know-basis.

Accuracy Matters

The small business accounting software assists you in maintaining error-free financial records which goes a long way in the preparation of highly accurate financial reports. There is no more need to manually struggle with the mathematical formulae. Once the data is entered into the software, it becomes available to others depending on their access privileges. It saves time and resources.

Affordable Cost

The use of an online small accounting software results in increased efficiency which in turn reduces the overall costs. Some of these systems allow to the business owns to collaborate with their accountants and other colleagues. They also do not have to depend on anyone as they have anytime and anywhere access to the business financial data to make their business decisions.

Installing a Web-Based Accounting Software Systems

The web-based accounting software systems are upgraded whenever there are changes in the rules and regulations. The new version is installed on the web servers without inconveniencing its users. It happens instantly, and the users start benefitting the latest version of the software without even noticing it. The business owners do not have to deal with the software patches or updates on CDs. They need to call in IT professionals to take care of it.

Preparation of Financial Reports

A business needs various financial reports for its statutory compliance. These documents also allow them to take a peek and judge the state of their financial health. They get more information about their cash flow, expenses, accounts payable, accounts receivable, etc. The regularly updated financial data also allows them to prepare budgets and forecasts and competently take care of the future needs of their business. The software allows them to export these reports in the PDF, Excel or Word format.

Trial Balance
Standard Balance Sheet with customization
Profit & Loss Statement for as-of-date & multi-period
Budget-related Reports (Comparison with Actual Balance Sheet & Budgeted Balance Sheet, etc.)
Currency Reports (Realized & Un-Realized Gain/Loss Report)
Reconciliation Report
GST Reports
Sales Reports
Purchase Reports
Bank Register
Account List
Aging Summary Report for Receivables & Payables
General Ledger Report

Calculating Taxes for the Businesses

Some business owners start worrying with the onset of taxation season. It is an especially difficult situation for them having sloppy record keeping. For a few, it leads to the filing of inaccurate annual returns and the resulting wrath of the regulating authorities. Such an incidence is harmful to the brand image and goodwill of the business. It creates a bad impression in the eyes of the suppliers, customers, and backers of the business.

You can avoid being caught in such a situation. You can upgrade to an online accounting system without delay. Choose the accounting system with care and if necessary, discuss your special needs with the manufacturers of the systems. They have the software developer teams which can customize their off-the-shelf accounting software to accommodate your special business needs.