Accounting is a top priority in any business as it is what manages the financial health of your company. That means that whatever goes in or out matters as it can make an impact on your operations and potential to expand. Therefore, it’s crucial to have accounting software that can help improve your process and reduce as many human errors as possible.
Compared to the painstaking process of lodging critical information paper, you can save time and effort while maintaining consistency in just a few keystrokes with the right software. With the myriad of accounting programs available online, it can be daunting to choose one that is suitable to your needs and matches your workflow.
The good news? There are factors you can use as a guide to help you narrow down your search and choose the best option for the sake of your financial stability. Fortunately, we’ve got you covered:
What are the Main Types of Accounting Solutions?
There are two types of accounting software, both of which have their pros and cons. They have their level of automation, security, and features, the best one for you largely depends on what kind of service you’re looking for.
1. Manual Accounting Software
Manual accounting software was once the gold standard as it involves using programs like Microsoft Excel or Google Sheets. However, this can be a time-consuming process as you will have to manually input data and formulas on top of searching for the right cell for the figure.
This can leave more room for mistakes, which is why online accounting programs that automate data entry emerged and are steadily changing the way businesses handle their financial data.
2. Cloud-Based Accounting Software
Businesses of various scales and types are transitioning to cloud-based accounting software as it offers a wealth of advantages. This includes serving as an efficient and timesaving way of inputting entries and analyzing data, as well as promoting privacy and security for your data.
All in all, online software like QuickBooks Online, Xero, and Sage Accounting offer greater versatility and better security. Additionally, the prices are budget-friendly, making it a cost-effective approach with features such as automatic data syncing, regular updates, and responsive mobile use.
Factors to Consider When Choosing the Right Accounting Program
#1: Basic Accounting Features
The accounting program should have a standard of essential functions like invoicing, income and expense tracking, and financial report generation, as well as customer management. A quality software, however, should go beyond the minimum requirements and offer features that allow you to integrate time tracking software and invoice billable hours. An example of an app that plug-ins to enable this is TSheets.
#2: Timesaving Automations
An excellent program will offer timesaving automation that will allow you to automatically convert invoices and past-due notifications in just a few clicks. This will shave off a significant amount of time as the program can reconcile your accounts with transaction matches, making it an efficient way to monitor any upcoming payments.
#3: Tax Preparation
You can make your life easier by opting for accounting software that features automatic tax calculations, multiple tax rates, and tax reporting that you can easily store in your system.
#4: Add-on Services
Add-on features like payment processing and payroll services make it easy to keep track of invoice payments and ensure your employees receive a correctly calculated pay in a timely manner.
Keeping the books of your financial status using painstaking, paper-based methods is now a thing of the past as automated accounting software now helps multiple businesses in this digitized world.
To that end, choosing the right program for your needs is vital as it will help you gain insight into your business better than you ever could on paper. This includes minimal errors, generating sales, and determining your least profitable service, amongst others.
We understand running a small business is complicated. Your financials shouldn’t be. Take the guesswork out of the accounting and let us help you build your blueprint for success.
Contact us today for your free assessment to find out how Blueprint Accounting can support your business.