#Tips: Why every business needs an accounting software

Every business owner wants to grow their operations. However, growing your business can make your operations become complex. You are puzzled with managing customer and supplier data, invoices, payments, loans, and staff salary. This can be stressful when using spreadsheets or paper accounting. An accounting software helps you to put your business data into an organized platform so that you can manage your business growth effectively. An accounting software is a software application that helps businesses to track their accounting processes in an automated manner. An accounting software enables you to manage your revenues, costs, profits, assets, and liabilities. An accounting software can be used either in the cloud (internet-based) or on-premise (office-based). Your accounting software helps your business to manage growth and track costs properly. Here are ten reasons why your business needs an accounting software.

Manage your inventory

Accounting software, cloud or on-premise, are better and more accurate than spreadsheets in the management of inventory database. An accounting software has the capacity to combine multiple inventory factors without any error. Information such as item name, quantity, unit of measure, colour variations, sizes, batches, and expiry dates are easily calculated and stored using an accounting software. This can lead to efficiency and productivity in operations. Depending on the accounting software, you can also manage production batches and expiry dates.

Automate manual operations

Tunde places an order for a pair of shoes from Molu’s shoe business. With an accounting software, Molu can easily provide pricing, calculate inventory reduction, and process delivery to Tunde. An accounting software helps to eliminate manual tasks while operating their businesses.  An accounting software can assist a business to make its process delivery easier, and thereby satisfying your stakeholders.

Compute tax easily

Legislative compliance is a priority for most businesses. The government can restrain your business and impose liabilities if you don’t pay your taxes. An accounting software helps businesses to manage tax liabilities. With your software, you can calculate your Value Added Tax (VAT) payments and deductions, Corporate Income Taxes (CIT), and employee Personal Income Taxes (PIT). An accounting software helps you to manage your tax payments and prevent unnecessary delays and penalties.

Store Management

An accounting software helps businesses to manage their warehouses or stores. When goods are brought into a warehouse, it is important to have a method of accounting for the stock. An accounting software assists businesses manage stock by classifying inventory location and using technology to monitor stock movements. A record gap can lead to pilferage by staff. Managing stock locations can be daunting when done manually. An accounting software helps businesses to properly track stock movements.

Obtains Loans Faster

When a financial institution wants to provide a loan to a business, they would access the business status to see if they can repay the loan. A financial statement is usually a primary source for financial institutions. An accounting software helps businesses to track and process financial information. Your accounting software can help your business to present the right information to facilitate the loan processing.

Prepare financial reports

As a business owner or accountant, it is important to know the health status of your company. How sustainable is your business in the next 6 months to 2 years? Will I default on my creditor and staff salary payments? These questions can be monitored with an accounting software. With your software, you can determine how much profits you are making within a period. You can check how much you need to save into the business or pay-out to investors. An accounting software helps businesses to provide financial information regarding a business’ welfare.

Work faster

An accounting software would help you work faster. Bookkeeping can take time when you manually track your costs and revenue using a spreadsheet. Spreadsheets like Microsoft Excel, require that you enter lots of information manually, making you to lose time that can be spent in other valuable parts of the business. An accounting software helps you save valuable time, so you can invest your time to grow your business.

Payroll Management

Your staff is an essential part of your business. As a business owner, you must plan how much each staff would earn every month. This process can take time if done manually. An accounting software can help businesses to manage their payroll costs and process staff payments promptly. Your staff are more engaged when they know that their salaries are made promptly. An accounting software helps businesses to achieve that.

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