With the advent of numerous advancements in the software industry and cloud-based computing Technologies, hundreds of accounting software have been launched in the market to provide ease of data sharing and storage. Switching to accounting software from the conventional paper with methodologies is a very feasible strategy, as it not only saves time but also provides data security and backup..
If you are launching a new business, you must definitely consider using accounting software instead of obsolete accounting measures. Many old firms are unable to switch to accounting software completely because we have a lot of information as hard copies. If you are new, you don’t have any migration challenges, and you can smoothly kickstart your accounting and auditing with robust software.
Table of Contents
- Do I have to use Accounting Software for my New Business?
- Summing Up
Do I have to use Accounting Software for my New Business?
It is not a very hard and fast rule to use accounting software for your business. But, if you don’t use software to handle your accounting and financial information, it will be complicated and tedious to manage your account. In the initial days, if your business is new, you can manage it somehow.
Later, once the business activities gain momentum, you will reach a point where you will start missing out on information and eventually, your business finance system could fail. If the finance system fails, you will have no option but to shut down the company. So, to avoid any such situation, it is suggested that from the initial days itself, you must try to start the accounting activities and use reliable software for it. There are numerous perks of using accounting software. Let’s discuss them:
- Easy invoicing and billing
Invoicing and billing are one of the most integral functions of the finance department. There should be no errors in the invoices you generate, as the customer might lose faith in your service.
Many invoices are recurring, and clients are redundant; generating a new paper invoice each time can be tedious. It is quite feasible if you use accounting software even to send out monthly reminders to your customers and offer them a wide range of payment options.
- Reports are generated easily
It becomes very easy to generate monthly reports or annual reports as all the transactions are saved in one database. There is some software that conveys information with the help of bar graphs and charts so that the business owner can see a clear picture of the statistics and compare it with the other year or month.
- Your transactions are tax complaint
Tax is another important aspect of accounting. If you are using accounting software, you can please fill in the tax information and the transactions can be dealt with accordingly. The software ensures that you do not make any transaction which is non-compliant with the rule of taxes.
- Online Transactions
Once the invoicing is done, the next important step is to collect payments from all your clients. If you do not offer the popularly used online payment methods, it would be a bad experience for the client. Most accounting software automatically records the bill payments on invoices and updates the database.
- Bank reconciliation
Bank reconciliation is important to ensure that you don’t miss out on any vital bank transaction in your accounting statement. Linking your bank account to the accounting software allows you to access statements from the bank automatically. You may set up custom criteria and bank rules in your accounting software to categorise and match the fetched bank transactions. You don’t even have to add data step by step into the software. It saves a lot of time for the accountant and other employees as well.
If you are planning to migrate your accounting processes to software, you will need some technical accountants so that they can train your employees and finance team. The migration period of about a month can be challenging. You might need to extend your accounting team, as some processes might have to be done redundantly using obsolete methods and software-based technology.
There are some accountants in west London who are pretty tech-savvy and have a passion for software. We at 123financials – startup accountants make sure that you find the right accountant according to your needs. If you need an accountant to back up the technical system of your company, we can bring out the best accountants. They have the most reliable technical experience and can deliver training sessions beautifully to assist you at the right time.