If your accounting processes are becoming unmanageable, it may be time to consider implementing accounting software. Doing so can save you time, provide better insight, streamline your financial data, ensure your data accuracy, and ultimately support your growing business. Before you start comparing vendors, make sure that adopting this technology is the right move.
5 reasons you might need accounting software
There are many reasons why you might need accounting software, including:
- Your company is growing rapidly
- You need deeper reports
- You want to integrate your finance tools
- You want to save time
- You need better accuracy
1. Your company is growing rapidly
If your company is experiencing rapid growth or has ambitious goals to meet in the near future, accounting software can support your initiatives. Spreadsheets are useful for basic accounting needs, but they can be time consuming to manage and aren’t easily scalable. Accounting software can easily accommodate all of the new users, data, and analytics that come with growth. It can also enable complex accounting tasks that you wouldn’t be able to do with a basic spreadsheet. This means you’ll have better information to help with business forecasting and planning.
2. You need deeper reports
Accounting software can also provide you with more valuable insight than a spreadsheet. You can compare historical data with current trends and make adjustments to your revenue tactics and goals accordingly. Sample reports include cost versus value, profit and loss, trial balance, accounts receivable aging, and general ledger reports. You can also customize reports without manually configuring formulas like you would with a spreadsheet.
3. You want to integrate your finance tools
Like most other applications you adopt, your accounting software should integrate with the tools you use to run your business. The solution you choose will be most effective if it integrates with your POS software, HR software, or supply chain management software for example. Once you’ve integrated your accounting software with other systems, you can create workflows that will transmit data, generate reports, or send notifications automatically.
4. You want to save time
One of the biggest benefits of accounting software is that it will help save time by automating repetitive tasks. These may include generating invoices, tracking payments, sending payment reminders, and creating purchase orders. Automating these tasks will allow you to spend more time on bigger priorities. Alternatively, outsourcing your accounting needs altogether might save the most time, but be prepared to pay more for accounting services than you would for accounting software.
5. You need better accuracy
In addition to being time consuming, spreadsheets also come with a moderate risk of user error. There are more variables to consider, so when something breaks or isn’t working properly, you’ll have to spend a lot more time troubleshooting. With accounting software, on the other hand, you don’t have to worry about what’s happening behind the scenes. The software provider you choose should have an entire team of engineers on hand to help you troubleshoot so you don’t have to waste time trying to fix a problem yourself. Plus, when your data is accurate, you’ll have a more reliable foundation for future planning.
Accounting software is an investment
If you’re on the fence about whether you need accounting software, weigh these benefits against the cost of implementing another business application. More than likely, the value accounting software will bring to your business will outweigh the short-term costs and ultimately create a sustainable foundation on which your business can continue to grow. When you’re ready to find an accounting software solution, check out our list of Top Small Business Accounting Software 2021.