Why Small Business Accounting Software is Essential

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One of the main reasons for the failures of small businesses – and the majority do fail within 3 years – is their lack of accounting expertise and their inadequate accounting procedures. Small business accounting software is essential to growing a business and controlling expenses in today’s tough economic climate.

The most obvious and immediate benefit of small business accounting software is the automation of mundane and time-intensive tasks that for years were done manually. This will not only reduce data entry and transcription errors, it can directly lead to more productive and satisfied employees. With key employees freed from repetitive tasks, they can focus on growing revenue for the business.

Fiscal year-end accounting procedures and federal and state tax calculations can be done in a fraction of the time using automation software. Those applications save time and money and lessen the possibility of human errors that can result in interest and penalties being added to the tax owed. What once took an entire week or more can now be done more accurately in one day, thanks to the power of small business accounting software.

Most off-the-shelf accounting solutions enable the company’s bank accounts to be integrated, so that the company can quickly write checks and have those credited to its accounts immediately. Accounts payable and receivables are also collected and recognized more quickly.

Small Business Accounting Software can Eliminate the Need for a CPA

Many small businesses cannot afford the cost of a full-time CPA or other accounting professional. For these firms, small business accounting software solutions are a great fit.  Small business accounting software, such as Quickbooks Pro or Intuit Online, are easy to learn. The look-and-feel replicates the popular Windows user interface with common icons for tasks and a help menu that can walk even the greenest of employees through a business transaction or audit task.

Having small business accounting software ensures that the company’s taxes will be paid on time and the business will avoid costly late penalties on federal and state income taxes owed.

Plan for the Future with Small Business Accounting Software

Small business accounting software does more than help a business in its everyday operations; it helps plan the company’s future. By having a concise and complete view of the financial condition of the business in real time, long-term planning is much easier. Most popular accounting software packages provide tools that allow the company to compare past conditions with current ones so that senior decision makers can best predict future events, adapt to changing conditions, and keep the business’ strategic goals within reach.

By implementing small business accounting solutions, companies can better plan for the future and manage the present more effectively with real-time information available at any time. Most small will see more accurate data, fewer errors, better metrics, reduced costs, and more productive employees.

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