Let’s face it: tax data given via stapled-together receipts and expenses, or even with a spreadsheet, can lead many to think that some things have fallen through the cracks. Tax returns need to be full of eligible reductions, and the only way you can be fairly certain they will all be there is by using accounting software.
More and more small businesses are switching to computerized accounting software in order to better manage themselves. Besides simply that your data will be more complete and fulfilling, here are some other reasons why you should strongly consider switching to accounting software for your small business:
1. Input is way easier
Most banks give you the ability to directly download and transfer your bank account data into the software of your choice. For those of you who spend time inputting data with the keyboard, this can mean an entire month’s worth of transactions can be entered in seconds. Now you can ensure all transactions are accounted for much quicker and easier.
2. Make a more formal statement
That’s a play on words. Accounting software can help you create more formalized financial statements by providing everything from profit and loss statements to balance sheets. These are crucial to evaluating the progress of your business and even more crucial if you are looking for some form of investment.
3. Get your business history
Sure, a spreadsheet program can provide you with a comparative income statement, but it can be full of inaccurate data. Accounting software is more likely to provide you with an airtight statement that you can use to compare your current activities with the ones of prior years. If you’re so inclined, you can always switch the data back to a spreadsheet form so you can make projections and play with the numbers a bit.
4. Make your books virtually untouchable
Auditors (such as the IRS in the U.S.) can become a real hassle for you when they are literally going line by line, combing through the mess of boxes full of receipts and expenses you have provided for them. You can actually be doing yourself a huge favor by showing how your books have been better organized using a formalized accounting software. You’ll see your audits becoming a lot shorter, among other perks for just giving your auditor an easier time.
Maybe this can be enough to get you to switch and give your life a little less hassle. You’ve obviously heard of some software out there. Which one would you take advantage for your small business?