Accounting and financial processes are the cornerstone of your company. The moment that something goes wrong in either of those departments is a moment that can have a profound impact on the way your company operates, this is why so many companies opt for help in the accounting department with someone like a small business cpa firm.
Apart from the obvious scenario of not having as much money as you thought you did, there are also others to take into consideration, such as being liable for a fine or investigation from HMRC because the figures you have submitted are inaccurate.
While many businesses still use accountants, like the ones from Eide Bailly, to keep an eye on those all-important numbers, more and more companies – especially smaller ones – are turning to accounting software. But what are the benefits of using software of this sort?
Accuracy and Compliance
Accuracy in accounting has never been more important. With all the rules and regulations surrounding the submission of tax returns and being able to see just how your company is performing, the accuracy of the figures involved is vital. Accountancy software leaves very little room for error which, in turn, improves the consistency of the data you supply and, just as importantly, helps to maintain your company’s integrity. Compliance is an important aspect of business, both to you and your clients. In a world where we are constantly exposed to stories of fraud and money laundering, a company that is seen to be above board and transparent in its monetary dealings has much more appeal than those tainted by financial scandal.
Manual or Automatic?
There are still finance departments that waste valuable time immersed in manual, paper-heavy processes, taking their attention away from strategies that could be generating new income, as opposed to watching payment histories. Accounting software can transform these manual exercises into automated processes that tick away in the background, virtually looking after themselves.
QuickBooks from Intuit is a prime example of accountancy software that will generate invoices, manage accounts and deliver real-time cash flow data – all at the touch of a button. Using software such as this, the financial minds in your company are free to deal with current situations and create financial plans for the future.
Your own Financial Analyst
As much as accounting software can be likened to having an accountant on call 24/7, the best software is more like having a financial analyst at your disposal. It can give you a 360-degree overview of the way your company is performing, based on both current and historical data. Using this information, good accounting software can highlight which marketing campaigns have been the most successful, which areas of your business need attention and where your next profit is likely to come from. It can also identify late payments and help you decide which customers are worth keeping on your list and which are worth turning away. Furthermore, software, such as QuickBooks, can provide the information that will lead you to discover untapped areas of your industry.
Accounting has become something of an umbrella term for the financial activity of a company as a whole. If unattended or poorly served, it can inhibit your company’s potential for growth, tarnish your reputation and even put you on the wrong side of the Law. However, accounting software is able to manage multiple tasks, efficiently, accurately and simultaneously – leaving you free to get on with the job of doing your job.