Small business accounting software has the amazing ability to make your business more profitable as they come with a bundle of benefits and a selection of considerations. Why not get a firm handle on the pros and cons of small business accounting software to make a more informed choice? Let’s dive right in.
Save time on data entry and sorting
As a small business you probably already have a trim, efficient team. Small business accounting software can free up time in their daily schedule by automating data entry. With a simple smartphone photo, data from invoices, bills, and receipts can be extracted as editable data.
Small business accounting software like Dext allows you to categorize and sort entries. You make the category rules or the system makes them based on prior data. Up to 1400 suppliers can be sorted according to tax, location, type of product/ service supplied, dates, and so on.
Eliminate human error
You can also link your business bank account to your accounting books so that data flows seamlessly and does not need to be done manually. Your accountant simply needs to check that all entries are included
Small business accounting software is also able to zero in on anomalies or errors in your data. One simply needs to heed the alerts and make corrections.
No need for calls to the client’s office asking if they have received or viewed an invoice. You get real-time insights on when a client opens and pays off an invoice and you even get updates once an invoice payment becomes overdue.
Your invoices are also more professional-looking because they are standardized and churned out by the small business accounting software.
As per UK laws, most small business accounting software with a strong foothold in the UK will save and secure your data for a period of 7 years as per the country’s norms.
Your data is typically secured by firewalls, or sometimes by double firewalls.
To be completely honest, there is no downside to investing in accounting software. But that does not mean you throw caution to the wind entirely. Accounting software may not have any cons, but naturally, it does have some limitations.
Here are a few things to consider:
You must actually put the software to use
Accounting software cannot passively make a change in your business’ profitability. It does not work like a heater that makes your environment more habitable when you flip a switch. It is more like a treadmill that gives you the tools you need to see a difference. In other words, you need to actually use the insights and real-time data access, tax insights, and so on in order to actually reap the benefits that accounting software brings to the table.
Will your accountant take things for granted?
Given that data flows directly from your business bank account to your books of accounts, your accountant is freed up for other tasks. However, active and consistent reconciliation is a must. Your accountant cannot afford to completely switch off when it comes to data entry. Any missing data needs to be spotted and your accountant must flag it up and resolve the issue.
Your accounts team should also be verifying data and reimbursement requests submitted by team members against the photo that is saved with the entry by the system.
Have you involved all relevant employees?
Accounting software must be used by those who do the maximum grunt work related to data entry. Restricting its use only to business heads means that one of its main components is going unused. Improving productivity by eliminating hours of data entry is actually one of the main benefits of accounting software. Why forgo it?
Dext is one of the most popularly chosen small business accounting software options out there. Try it now: https://dext.com/uk/business-owners