Accounting software costs more than entering business transactions on paper or on a spreadsheet, but it is worth every penny. Spreadsheets and paper records are vulnerable to user error, file corruption, and simply are not scalable to support the number of transactions most companies handle. Even if you are a small sole proprietor with only a handful of large transactions per year, accounting software has some important advantages over manual accounting.
Here are the biggest reasons why your business needs to switch to a branded accounting software:
Accurate Financial Records
One of the biggest advantages accounting software provides is accuracy. With accounting systems like Sage, calculations are made automatically, transactions can be coded based on earlier entries, and invoices are processed automatically so you know the numbers are accurate. You can also trust that the numbers are coded correctly so that your cost accounting is accurate as well as your financial statements.
Easier Access to Financial Data
When you use accounting software, you also get better data access. It is easier for you to get an up-to-date snapshot of your company’s finances, both in the office and on the go. You can normally customize a dashboard view of those metrics that matter most to your individual business and industry, often visually. This information helps you check your daily operations, but you can also use the ability to easily access your financial data to use that information in developing strategies, offering financing terms, making sure you have adequate cash flow to cover operations, and deciding on how to spend the money you earn.
Saving Costs Across the Board
Using accounting software also reduces costs. There is a time factor to entering information manually, and the amount of time it takes to manage your accounts by hand in paper records is even greater. It takes time to complete the processes, and several entries have to be duplicated on this sheet or the other. Make a mistake and it takes even longer. When you switch to accounting software, it removes all of the hassles. Figures have to be entered only once, and the numbers transfer to all of the necessary sheets, plus probably a few more that will help you understand the financial health of business even better.
Scale Your Operations
As your business grows, it can be difficult to keep up manual accounting records. It is time-consuming, but in many cases it simply becomes impossible. By the time your transactions cover multiple pages, scaling operations becomes increasingly difficult. The more difficult your bookkeeping, the more likely there will be errors — and the more time it takes to correct those issues. In addition, when you use manual accounting techniques, it can be difficult to combine information between teams, departments, and locations.
Accounting software has many advantages over manual accounting methods. It saves you time and money, gives you better access to your financial information, makes sure your numbers are correct, and lets you scale your operations.