InvoiceBerry Blog

Our thoughts & tips on small businesses, freelancers and sole traders

14 Key Benefits of Adopting Accounting Software in Your Company

Written by on March 13, 2017

Accounting software solutions can help businesses in many ways, and today we’ll show you the solid reasons why you should start using it to boost your business.

You can start by browsing a good directory that provides in-depth reviews of business software and select a suitable system for your needs.

Your selection task is made simpler as accounting software packages are designed for particular industries, such as medical practice, construction, consulting practice, etc.

The main advantage is you don’t need to be a financial expert to use these systems. Their interface is quite user-friendly and you can use the software effectively with just a bit of knowledge and practice.

If you are still on the fence, read on to learn about the main benefits of using accounting software.

Free Ebook: Small Business Finance 101 InvoiceBerry is proud to present its all new finance education ebook: Small Business Finance 101. Download today to get updated on your finance knowledge! READ MORE

#1 Saving Time

When you select a quality accounting software system it can really help you save a lot of time compared to manual bookkeeping.

The package can simultaneously process front end documents as well as back end transactions.

For instance, you can write checks, create bank deposits, and prepare customer invoices in the solution, and the software will record all the transactions.

#2 Continuous Financial Monitoring

In manual accounting, most of the work is done at the end of the financial year when the records are prepared for administration and tax assessment purposes.

But with computerized bookkeeping, you can create and maintain financial records continuously and get in-depth reports any time you wish.

This enables company management to continuously monitor the financial records of the business and resolve issues early before they balloon into big problems.

#3 Management of Cash Flow

With accounting software, you can record and track your payables and receivables. This enables you to know your current as well as future cash flow status.

For example, you can enter your bills as well customer invoices, and their due dates, and get insightful reports that will tell you if your receivables are enough to pay your future bills.

Plus, you can keep records of invoices and bills which can help you to avoid late fees and overdraft charges.

#4 Short Learning Curve

Small business owners usually don’t have the time to learn to use new software.

Fortunately, with most leading accounting software systems the learning curve is short and easy. So, even lay users can learn to use the system effectively. This can help to minimize reconciliation issues and accounting errors.

Most leading vendors provide adequate training and customer support to help small businesses make effective use of their software.

#5 Minimizes Mistakes

Manual accounting increases the chances of errors in calculation. You can avoid this by opting for accounting software which automatically performs all calculations accurately.

This is a big benefit especially if you need to prepare detailed invoices in which specific items or worked hours are billed at various rates.

Simply pick the items for invoicing, enter the required data, and the system will do rest for you.

The 6 Worst Accounting Mistakes Small Businesses Make and How to Avoid Them You know you wear many hats, and accountant is just one of them. These are the 6 worst accounting mistakes you're probably making, and how to avoid them. READ MORE

#6 Scalable Solutions

Leading accounting software systems offer advanced features such as salable databases and sophisticated customization. Expanding startups and small businesses can opt for these solutions to meet their growing needs and demands.

Companies that are expanding in other countries, using home-based employees, and have clients in diverse locations can use cloud-based accounting solutions that can be accessed anytime, anywhere, on any internet-connected device.

#7 Computerized Invoicing

With accounting software that focuses on invoicing, you can get up-to-date reports on customer payments. The reports can provide you details on which customers owe you and the amount to be paid.

The most important advice is to use online invoicing software
Computerized invoicing, such as InvoiceBerry, will help make your business run more smoothly

This can help you to manage and control your finances effectively. You can ask the late-paying customers to speed up payments and thereby minimize losses.

Thus, the accounting software can provide you with reliable information on payables and help to boost profits.

#8 Neat and Tidy Organization

Manual invoices can easily be misplaced or lost. On the other hand, an accounting package stores all the data and information securely in a single location.

You can review, reprint, and resend invoices if needed. Plus, you can easily search the software for invoices with invoice numbers, names, and amounts.

The process is easy and fast as the system neatly organizes all the entered data.

#9 Tracks Inventory

According to recent accounting software trends, many quality solutions can now track product inventory and provide up-to-date details on the amount of stock in hand.

They can automatically track inventory even as product orders are processed. On top of that, they can forecast when you are likely to run out of stock so that you can order more items in advance.

Thus, this inventory tracking feature can provide accurate data and help to save time too.

#10 Actionable Reports

Accounting systems can provide detailed reports on your business processes and help you track the money flow in your organization. You can get a clear picture of your costs and revenue at any time.

This can help you to calculate your profits more easily and learn which customers generate the most revenue for your company. Leading accounting solutions provide in-depth actionable reports whose range depends only on the type of information you enter in them.

In short, these reports can help you make smart decisions, and operate your business more efficiently and productively.

The 9 Most Important Financial Numbers Explained Everyone can use a bit more finance training, so we’re going to explain the 9 most important financial numbers you need to run your business successfully. READ MORE

#11 Immediacy

With accounting software, you are forced to keep your data entry current and up to date. This can help you keep close track of your company’s finances all the time.

As a result, you can quickly learn about a customer who has credit problems and not making payments on time and similar issues that create a gap in cash flow.

Thus, using accounting software is a much better alternative to simply storing manual invoices and receipts in a file for later dealing at the end of the financial year.

#12 Advantage of Mobility

Leading accounting software vendors provide mobile apps for Android and iOS devices that enable you to carry your books with you.

These apps can be used for a range of productive tasks such as sending invoices, viewing invoice information as well as expenses, attaching receipts to immediately record expenses, tracking billable time, importing new client details directly from the contact information stored in your phone, and more.

#13 Centralization

Accounting products help you to centralize key business processes and tasks such as customer relationship management, payroll, invoicing, inventory management and more.

You can use one package for all these tasks instead of investing in separate software solutions for each process.

Thus, a full-featured accounting package can help you save a lot of time and money as well as make your business processes more streamlined and efficient.

#14 Eases Tax Compliance

Accounting platforms can calculate the tax amount that needs to be paid on each invoice.

Plus, you can get detailed reports on the amount of tax your company has paid during a given time period. Thus, you can get all the information you need to prepare and file tax forms stipulated by the government.

Advanced systems even allow you to e-file tax returns from within the product.

Conclusion

We hope this article on the numerous benefits of using accounting software has convinced you to get rid of manual bookkeeping and invest in a good quality package.

If you are already using an accounting software solution, feel free to share with us the advantages it offers for your individual practice or company.

Alex Hillsberg from FinancesOnlineChief editor of the review team at FinancesOnlineAlex Hillsberg is an expert in the area of B2B and SaaS related products. He has worked for several B2B startups in the past and gathered a lot of first hand knowledge about the industry during that time.

Subscribe now

Get our weekly digest into your inbox!

Sign up to our weekly newsletter to receive the best freelancing and small business articles on InvoiceBerry.




Ready to start invoicing your clients with InvoiceBerry?

Sign up to our Forever Free account. Yes, it's really free.

Don't leave us yet!

Subscribe to our weekly digest!

Sign up to our newsletter to receive our weekly email digest every Friday morning and read about the best freelancing and small business articles on InvoiceBerry.

Read previous post:
Check out small business and freelancing news in our weekly roundup now!
Small Business and Freelancing Roundup: Week of 10/03/17

While the first spring month is kicking in, UK has a new budget and the world's been celebrating the International...

Close