Accounting for your small business can become a complicated and time-consuming process. As your business grows, calculating your income becomes more difficult. You need to create more invoices, make new journal entries, create financial statements, and the list goes on. This is a reason why most businesses are using accounting software to manage the entire accounting system. This software automates most steps of the accounting cycle, which saves you time and you can concentrate on your other business tasks. Today in this digital world, software s becoming the key to the growth of your business. And businesses are also looking for new ways to access custom software solutions.
What is Accounting software?
Accounting software is a tool that helps businesses or accountants to manage their accounting transactions and business financial accounts. This software helps them to manage their transaction tasks easily.
For eg. You can automate your business journal entry process, which means when payment is made from your business bank account, you can generate a financial statement of those transactions using just one click of the mouse. This is a process that can consume hours if you do it manually in a spreadsheet.
1. Access your accounting data anytime and everywhere
The most obvious advantage of cloud accounting software over any traditional accounting system is that computer accounting software allows you to access your data whenever you want and from the device of your choice. You can use online accounting software from your laptop or PC. For businesses of all sizes, this has many benefits. For example, you can create and send invoices directly from your mobile. Or you can generate, view, and download financial statements with just a click.
There is no need to ask your accountant to prepare it three days in advance. Just log in to the platform, go to your financial report section and download the financial statement you need.
2. Simple convention
The software machine makes a relationship only in 1-2-3. Remember the time you had to make changes on a piece of paper, save it to a USB drive, and hand it to your colleagues so they could get the latest version of the financial statement?
Yes, those times are gone. With cloud accounting software, one of the biggest benefits is that anyone has access to accounting records and financial data. So your users will log into the platform and do what they need to do. No restrictions, and no delays.
Many users can work on the same accounting data at the same time, without getting in the way. Additionally, online accounting software allows you to give different levels of access to different users. This way, you can customize permissions based on the set of accounting or bookkeeping functions a user needs to perform.
3. Spend time on automation
Most of the work that an accountant or bookkeeper does daily is manual and repetitive. Example:
Create an invoice for every sale. Repetition. Track transactions and create separate journal entries. Repetition. Send your customers payment reminders on time. Repetition. You get the point. Many steps in the accounting process can be automated. And that’s exactly what accounting software does best.
For starters, you can customize the creation of journal entries. All you have to do is add your bank directly to your loan application. This way, every time you pay or receive a payment, a journal entry is automatically created and linked to the correct account. You can also automate reported as-reported reports (for example: create each X-day date). Or you will be processed by automated payments. Keep in mind, however, that not all cloud accounting software offers the same degree of accounting automation. If you are looking for the best accounting software and automation, you should try Gross Account.
4. Improved accounting security
One of the great benefits of cloud-based accounting software is that all of your accounting data is stored in the cloud. This means that your data is covered by layers of advanced encryption algorithms, making it safer than keeping it on an office shelf. And the best part is that all your data is always synced. So it’s not only safe but also fresh.
To give you a better idea, when a company uses desktop accounting software, accounting data should always be backed up. After all, the data is stored on the hard drive. And as you already know, hard drives are beautiful. They can be destroyed, deleted, or damaged and become unusable.
As a result, companies must invest a lot of time in incorporating financial and accounting data into their disaster recovery plans.
With online accounting software, you never have to worry about backing up your data – the system will do it for you.
5. Improved accuracy of accounting and bookkeeping
With online accounting software, you can avoid common accounting mistakes. Online accounting software will ensure that your accounting is organized correctly and efficiently, every time.
Do you remember the time you wasted 5 hours trying to figure out why the balance sheet didn’t balance? Well, you can say goodbye to those times.
This is just one simple example of how accounting software can help you maintain accounting records and financial data for your business. Another common accounting error that you can avoid by using accounting software is any error related to data freshness. Imagine you are editing a previously edited journal or spreadsheet, but haven’t received an updated version yet. Figuring out how to combine changes from two different files can be time-consuming. But with online accounting software, you won’t face such problems as all the data is synced to the cloud. In general, using online accounting software will ensure that your accounting is organized efficiently and effectively. Your financial reports will be more accurate and your team will be able to make faster decisions and better priorities.
Monitoring and reporting are probably one of the biggest benefits of accounting software. To track your accounting data in real time, just add online accounting software to your business bank account and you’ll be able to track things like expenses, sales, and inventory in real time.
Accounting software provides you with a dedicated dashboard that allows you to track all the accounts and metrics you want to track. Gross Accounting software gives you a dedicated dashboard that allows you to manage accounting transactions easily.
7. Reduce costs and save money
You may be wondering how paid software can help my business save money. The answer is simple.
Using online accounting software will save your business approximately 300 hours per year. This takes into account the time wasted on tasks such as completing repetitive tasks, correcting accounting errors, creating financial reports, etc.
8. Reduce paperwork and improve support
In 2023, no one likes to study. Document management is time-consuming and expensive. Why do you need to take a picture, when you can create one individually with a click? The advantage of using accounting software is that all financial data, including journal entries, financial statements, and reports, are available online. Whatever invoices, records, or entries are created, everything is stored under the cover of privacy in the cloud. It’s easy to get anyone with the right credentials.
In addition, you can also create and send invoices directly from the application to your customers, reducing time and money wasted on printing and distributing invoices, and making the payment process faster.
9. Improved billing
Creating invoices is one of the accounting tasks that every business needs to do, regardless of size or industry. And although the type of invoice is indeed different depending on the type of sale, the process of issuing the invoice is the same or more. Before that, people used Excel, Word, or even manually to create invoices.
The result is usually a well-organized invoice, which will take several minutes to create. Now, if you’re a business that only generates 5 invoices per month, that’s not a big deal. However, if you generate more than 100 invoices per month, some of which are recurring, doing it by hand will be a disaster. With cloud-based accounting software, you can create professional business invoices using a single pre-made template in seconds.
10. Tax compliance is simple
One of the benefits of using accounting software is that it makes tax compliance easier.
Let’s face it, no businessman likes to deal with taxes. This is where accounting software is used.
By having accurate financial records, financial statements, and current reports, collecting the documents and information required to file taxes is very easy. Plus, advanced online accounting software like Gross Account has built-in tax management, letting you focus on growing your business, instead of worrying about dealing with the IRS.
All you have to do is select your country, and enter your company information, and Gross Account will automatically apply taxes to invoices and other documents based on your local tax laws.
The main purpose of accounting software is to simplify accounting responsibilities. With the right accounting software, you can access, store and process all the data you want with just a few clicks. You can also combine all the accounting tasks of your accountant team.