Is It Wise for SMEs to Rely on an Online Accounting Software From the Beginning
Be it a startup or a successful multinational corporation, accounting and bookkeeping are the fundamental things to maintain for any company. But this is always easier said than done.
That’s because it takes a good amount of time and effort to accurately and efficiently maintain the accounting and bookkeeping process.
Luckily, regardless of the size of your business organization, you can easily overcome these issues with online accounting software. But when to use the accounting software? Should you rely on it all along or down the line?
Let’s decode this mystery in this post today.
Do SMEs Need Accounting Software?
If you are a small or medium-sized business owner, the first thing you have to know whether you really need an Accounting software. Well, as you are running a business organization so it is almost certain that you are conducting some sort of financial transactions, isn’t it?
And conducting financial transactions means you have to calculate the profit and loss to see if your business is progressing or is going to bear the loss.
Unfortunately, to err is human! Meaning that you will be prone to forget some of the transactions or miscalculate them. And more often than not, you will end up losing your books if you are maintaining accounts manually in physical papers.
Why Your Business Need an Online Accounting Software From the Beginning
We have handpicked a few reasons for which you would need an accounting tool right from the beginning of your startup:
Not Running out of Your Budget
Comparing with the large corporations, the startup owners often roll out with a shoestring budget. (It’s quite normal because the Apple incorporation also started at a garage too)
If you are going to employ a professional accountant, you may have to gratify him with a handsome amount of perks.
But for a startup owner, it just saps the vigor of his budget, isn’t it? To get rid of this high compensation rate for a professional business accountant, you can simply replace the accountant with a professional online accounting solution. Easy as pie!
Record Transactions Like a Pro
You may not have a business degree when you are a startup owner. (In fact, an army of successful entrepreneurs did not have a business disciple.).
But with a free accounting tool, you can maintain bookkeeping by recording all the transactions in the financial books like in the Journal & Ledger with an accounting tool.
Keeping Extra Expenditures in Check
In business, sometimes we neglect the small expenditures like office supplies. We often dilly dally to include what we spent to entertain our guests, don’t we?
But do you know these small expenditures when summed up result in an enormous balance at the end of a year? So, to keep these types of small expenditures in check, you must record them in the Journal, Ledger, Trial Balance, and so on.
Removing the Hassle of Entering Bulk Data Down the Line
Assuming that you are a small business owner and are maintaining the traditional pen and paper method for the book-keeping and accounting process. Later on, you changed your mind to use an accounting solution.
Now that you have bought a new accounting solution, the first thing you need to do is to input the correct account balance to the system. This eats up a good amount of time and effort.
Determining the Correct Balance of Accounts
If you do not know the standard accounting principles of not maintaining an accounting system then chances are that you are miscalculating the account balances.
In the future when you choose an accounting system and start using this erratic balance then you will not be able to see the real picture of the financial balance.
Getting Ready-Made or Automatically Generated Reports
As accounting and business veterans, we know how much effort and time it takes to analyze the financial transactions and make financial statements like the balance sheet, trial balance, tax statement, profit and loss statement, and so forth.
Even if you are a startup business person, you still can harness the automation of an accounting system to keep all the hassles at your bay.
Get to Know the Big Picture at Once With a Dedicated Dashboard
In case, you are using an Accounting solution, you can get to know the current financial condition just like a bird’s eye view. How is that possible?
Well, a good accounting solution will present you with an overview of a dashboard from which you can get to know how much cash you have at your hand or how much you owe to others or vice versa. A complete picture of your financial dealings and progress.
Access From Online & Enjoy Extra Holiday!
Entrepreneurs are mostly freedom-driven personalities. They come out in independent businesses so that they can hand out with friends and family. After all, we need some time off as we do not want to burn out with the consistent stress in life now, do we?
Unlike an in-house accounting solution, online accounting software allows you to access online at any time & from anywhere.
Remain Transparent to Government Agencies
When you are making an income by selling your products from your business, you will have to provide business tax to the government agencies. In order to perform this efficiently, you need to generate a sales tax report.
So when the government agencies audit your company you can help them by calculating the reports the right way with an online accounting solution.
While you are in the quest of “Whether startups or SMEs need an accounting solution from the beginning”, we can firmly say that the startup SMEs need the online accounting solution far more than the already established ones.
So, what are you waiting for? Get your startup stepped up with an accounting software before you actually get lost in the financial accounts of your company. And in case you are already looking for a solid Accounting management software that serves all the basic needs of SMEs then you may want to try the:
If you think we have missed out on any valid point here then feel free to let us know in the comment section below.