3 reasons to stop manual accounting and start using accounting software
There are several genuine reasons for small businesses to switch from manual accounting to software solutions. It is very much essential to understand the reasons, so as to make the perfect choice.
Reasons for small business settings to use accounting software
The first major reason for considering using the best small business accounting software is quite obvious. It does allow the entrepreneur to save a good amount of money. There are several basic accounting packages that are easily available and also cost less when compared to using paid spreadsheet applications. Also, there is no need to hire experienced and knowledgeable accountants to maintain daily transactions and records. This is because, the software packages are designed to offer ease of use and are quick to enter and maintain records. There is no need for the person to be an expert to use the software accounting package, since it offers clear template for the transactions. It means, the end result can be read easily by the entrepreneur and keep proper record of the happenings in the business. Using specially designed accounting package will help to sort out problems that are generally faced with manual accounting.
Precious time can also be saved by using accounting software. When starting with spreadsheet, the person is offered just a blank canvas. But the readymade accounting software comes with laid out account charts. The user is also informed of where data is to be entered correctly. Furthermore, those using the spreadsheet are to know where precisely is the data to be entered and use correct formulas. Moreover, the software does automatic calculations. There is no need for adding any basic formulas manually. If spreadsheet is used, new ones are to be created every year, month or week. But by using the accounting package, the new year accounting process can be started with great ease.
The final reason to select accounting solutions is that these packages can help to even the lay person to understand accounting basic principles effortlessly and easily. This way, the entrepreneur will gain greater control on the happenings of the business. people using spreadsheets would have list of expenses and sales expenses with them, which are single entries. This way, only one side of transaction is had. But the accounting package will organize convert input data into the needful double entry format. It means, the entrepreneur can have view of the transaction’s dual sides. Where the money is funded and where it goes can be viewed in just one click. The entrepreneur is now in a position to evaluate the expenses and sales affecting the credit card account or bank account. Also, using the spreadsheet it is not possible to reconcile data with bank account. But any good accounting software will allow this. It is also possible to know cash flow taking place in the business.
Overall, using spreadsheet and maintain manual accounts will only cause trouble and human errors. This can be avoided by using accounting packages and have better control over business at any point of time.