If you are like most other business owners, you must have used spreadsheet documents to manage and track your business finances. If your business is scaled, you must have noticed the drawbacks of using spreadsheets for financial calculations. While that is a good way to start, it is in no way a scalable approach if you wish to stay on top of all your business transactions. That is where accounting software provides much-needed and unparalleled value to businesses.
Bookkeeping apps come with the ability to record and categorise all the financial information, even in real-time. This includes performing important tasks like creating invoices, sending them to customers, managing payrolls, creating reports, and more. There are numerous types of bookkeeping apps available today, depending on your business needs.
Whatever be the type of bookkeeping app, one clear benefit is that businesses don’t need a lot of technical expertise to set the tools up. The installation, and even the usage, of these accounting tools, is relatively straightforward and can be mastered by just using a couple of times. Because of these reasons and more, companies around the globe are shifting to using online bookkeeping applications. Let’s look at some more reasons that have encouraged this switch of businesses from manual bookkeeping to automated bookkeeping apps.
1. To enhance efficiency
Business owners are always looking for ways to make their business operations more efficient than earlier. By using bookkeeping software, businesses have been able to cut down on a lot of time, effort, and money that was spent in performing bookkeeping duties. The software works with near-perfect accuracy and generates results in a quick, timely manner. Plus, with all the books in one place, the application makes it easier for everyone to access past records without any hassles of manually digging into heaps of paperwork.
2. To automate bookkeeping
Automation has turned out to be an absolute blessing for bookkeeping tasks. Depending on the bookkeeping software you select, you will be able to perform different bookkeeping tasks. These include adding totals, creating and sending invoices, generating statements, and more. Since the bookkeeping apps are tech-fueled, they work automatically once you have input your required data. Further, this automation is not vulnerable to any form of errors or misjudgments, so all the figures you receive are more accurate than hand-calculated values.
3. To simplify tax filing
One of the biggest nightmares for any business owner, when it comes to tax filing, is disorganised and misplaced financial information. Such mishaps not only put the business liable for fines, penalties, and punishment, but you might also find yourself amidst severe legal issues if your books are not at all maintained. Plus, with disorganised financial books, it is often easy to miss out on dates and important tasks. Bookkeeping software helps in this regard by keeping all the transactions organised in one place. These are all easily accessible to you from your dashboard at the time of need. In this way, bookkeeping applications help in saving a lot of time and effort when it comes to performing tax duties.
4. To get a financial overview of the business
Properly maintained books are important in all aspects, but especially when it comes to knowing the financial health of your business. With bookkeeping software, just a quick glance over your dashboard will tell you about all the important metrics that you need to know and be aware of related to your finances. You can even track and monitor patterns to make insightful predictions. You can use all this information to set financial milestones for your business that are achievable and realistic. Knowing your business’ financial health and status is also the first important step towards maintaining healthy cash flows and ensuring that your business is never facing cash deficits.
In conclusion, bookkeeping applications offer more benefits than one. When you look at the range of tools and features they come with, and the array of problems they solve, it is no more a surprise why a plethora of companies are switching to bookkeeping apps from manual bookkeeping!