For most small and mid-size businesses, spreadsheets are the go-to solution for managing their accounting data and processes. They do not prefer accounting software for their business. If you are one of them, I have a question for you.
Do you think spreadsheets are efficient in addressing your growing financial needs?
As your business expands, your accounting data becomes increasingly complex. Managing a lot of spreadsheets will be highly time-consuming, error-prone, and confusing.
So, think beyond spreadsheets!
Growing enterprises need accounting software that can be scaled according to their needs. Consider a robust accounting platform that helps you address accounting challenges and streamline varied operations.
Accounting Software Market Overview
“The global accounting software market is estimated to grow by USD 37.63 billion in 2032.” – The Brainy Insights
The above numbers clearly depict the increasing adoption of accounting systems worldwide.
Smart entrepreneurs prefer to work faster by unleashing the power of advanced technologies and eliminating manual efforts.
With an advanced accounting platform, companies can drive efficiency in their ecosystem. Leveraging the software’s advanced features, organizations can automate their accounting cycle and spend time on what matters.
Types of Accounting Software
Before discussing the advantages of accounting systems, let’s have a quick overview of the different types of accounting platforms available in the market. This will help you choose the right one wisely.
Cloud-based Accounting Software
A cloud-based accounting platform is an online platform that securely stores and manages your account information on a cloud server. The solution works online, allowing you to access the books on the fly. All you need is internet connectivity.
Moreover, cloud-based solutions do not require manual updates or downloads. It happens automatically.
Desktop Accounting Software
The desktop accounting system needs to be downloaded and installed manually on the machine. The financial data is stored in the solution and accessed only from that machine. You don’t have the flexibility to access them anytime, anywhere.
While implementing such solutions, you will be responsible for taking the data backup and performing the updates regularly.
Advantages of Implementing Accounting Software for Small Businesses
Enhanced Accounting Security
By condensing accounting software for business, you can manage accounting data with higher security. Your financial data is protected with high-end encrypted algorithms, which add a better security layer than managing it on your office shelf.
Moreover, the system performs real-time data synchronizations so you can always access updated data.
Streamlined Tax Operations
An advanced accounting system adheres to local text regulations, making tax processes easier. If you are dealing with multiple tax rates, the process becomes faster and more accurate with the help of the right system.
Additionally, the platform allows for managing invoices, income statements, receipts, and more in one place. So, when you file the tax, you can access all the necessary data from a single location. The solution generates summary reports on all tax particulars and helps companies better understand taxes.
Inventory Management
Inventory management is critical for companies that deal with tangible products daily. They must manage a sufficient stock of products to ensure timely online delivery and provide better customer service.
Accounting software can record product information, manage accounts, track products, generate reports, and more. It also records SKU codes, stores product images, creates bundles, and tracks product movement by batch or serial number.
Once you receive an order, your accounting solution creates a sales order, approves the invoice, and applies appropriate taxes. As the platform tracks stock, you can leverage the ability to receive automatic emails to place orders on time. It helps avoid the situation of products being out of stock.
You can gain insights and manage inventory more effectively by generating inventory-specific reports.
Lottery Management
Some accounting systems are designed explicitly for store retailers to simplify their verified accounting operations, including lottery management.
In the United States, many convenience stores use accounting platforms to manage lotteries and accounting data. By integrating your accounting solution with the POS system, retailers can empower their different lottery management processes, such as
- Scan Lottery Tickets
- Discontinue the Tickets
- View Ticket Summary
- Calculate Tickets Online
- Manage Inventory
- Varify Inventory and more
Hisably is a robust accounting software that helps companies manage lottery and financial details from a single location.
Automated Processes
It’s so true!
Automation drives efficiency in your business by performing repetitive tasks effectively.
Accountants and bookkeepers perform tedious, complex, and manual daily to keep their accounts up-to-date. These processes are time-consuming and prone to error.
With an accounting system, you can automate processes requiring significant time and effort with ensured accuracy. It helps you streamline the process for
- Invoicing
- Making journal entries
- Importing data
- Credit card payments
- Sending payment reminders
For example,
By integrating your bank with your accounting solution, you can automate the creation of journal entries. Whenever you receive or make a payment, the journal entry is automatically created and mapped to the respective account.
You can also automate the processes like generating financial reports or making/receiving vendor payments.
Save Time & Money
Implementing accounting software streamlines your time-consuming and tedious bookkeeping and accounting processes.
For example, to review your transactions, you do not need to manually download the CSV files from your bank account or credit card and enter the data into spreadsheets. The accounting solution pulls the data automatically for you.
Reduced Errors
When you are dealing with a lot of numbers and complex accounting rules, mistakes happen. With accounting software, you can reduce such errors.
Some of the most common accounting mistakes that you can avoid using an accounting platform are:
- Reversing entries
- Reconciliation of books
- Transposition errors
- Omission errors
Unleash the power of an advanced accounting system that helps you keep your books organized and accurate.
Improved Collaboration
Gone are the days when we used to update the accounting data in spreadsheets, copy the files into a USB, and share them with colleagues so they could access the latest data.
The accounting software allows all accountants/bookkeepers access to update financial and accounting data by allowing them to log in to the system.
Multiple users can access the same accounting data and work on it simultaneously without hindering each other’s work.
Implement role-based user access so that different levels of users require access to specific data. You can change the access permissions as and when needed.
Real-time Reporting
Every business owner needs to track financial growth periodically to make the right decision to ensure the company’s success. Accounting reports allow you to understand trends and analyze growth patterns.
If you use spreadsheets for accounting data management, consolidating the data from different spreadsheets and applying the formulas manually to create each report will be challenging.
Accounting software automatically generates reports for you, saving your team time and effort.
For every business unit, three financial reports are crucial to analyze.
- Cash flow: Some accounting solutions analyze cash flow and help companies plan their financial strategies accordingly.
- Profit & Loss Report: By generating profit and loss reports, companies can gain clarity on their revenue. The solution helps them understand the crucial financial aspects of their business.
- Balance Sheet: The accounting platform generates balance sheet reports, which help firms draw conclusions about certain aspects and make informed decisions that drive their business in the right direction.
If you have a specific report creation requirement, you can ask your software vendor to integrate the particular reports through custom development.
Reduced Overhead Costs
Implementing accounting software can reduce manual efforts. It reduces the need to hire staff and allows your existing staff to focus on more valuable and strategic areas of accounting.
Quick access to real-time data helps identify potential gaps and implement an improvement strategy that drives better efficiency and productivity. Eventually, it helps reduce costs and increase the profile.
How to Select Accounting Software for a Small Business?
Many organizations struggle to select the right accounting software for their business.
Are you one of them?
Let’s understand what aspects you must consider while opting for an accounting system.
Requirements
Every business has different requirements. You need to select an accounting platform based on your specific needs.
- Analyze your existing accounting processes
- Identify the gaps
- Understand the requirements and list them down
Budget
The most essential aspect for any business while considering accounting software is budget. You have two options.
- Inexpensive platform with basic features
- Higher range platform with advanced features
Features
Based on your requirements, you need to create a list of features. Most organizations implement an accounting system for
- Checking financial growth & loss
- Managing inventory details
- Managing invoices
- Conducting payrolls and more
Usability
You need to define your solution preferences.
- Cloud-based solution or desktop-based system
- Number of users who need to access the solution
Once you have clarity on all the above-listed aspects, it will be easier to decide which system meets your expectations and requirements.
Start Your Smart Accounting Journey!
Let’s get started with your transformative journey towards simplified accounting with Hisably.
By leveraging our intuitive solution, you can streamline varied financial processes, enhance accuracy, and easily make data-driven decisions. Address all your complicated accounting needs seamlessly. Take the first step towards efficient and effective finance management.
Ready to simplify your accounting practices and unlock your business’s potential?
Talk to our expert now and discover how Hisably can empower your accounting ecosystem.
Your smarter accounting journey begins here!
