As a small business owner, you have hundreds of things to think about every day. Tracking your income and expenses is an essential task, but it can also be very tedious. Luckily, it’s easy to get a handle on things by using accounting software as an integral part of your business.
The right software can help you with paying your bills on time, invoicing clients, and maintaining your books and records. When everything is in order, it’s easier to stay in compliance and avoid potential IRS audit red-flags. Here are the top 10 reasons why your business should be using accounting software.
Ease of Use
Accounting software programs are designed to be used by regular people. In most cases, no previous experience is necessary. You can master the software in a matter of minutes.
When you need help, online tutorials and phone support make it easy to get your questions answered quickly.
If you’re using a spreadsheet or older accounting system, you’re in luck. Most new accounting software will easily import your information. This helps to ensure you won’t lose any data history and makes the switch relatively painless.
Bookkeeping can be one of the most tiresome parts of running a small business. Hiring a traditional bookkeeper is often far more expensive than investing in quality accounting software.
Many accounting software programs link directly to your financial institutions. This greatly minimizes the amount of manual input required.
ScaleFactor’s bookkeeping service makes automatic suggestions based on your financial history. Inexperienced users will appreciate how easy this feature makes their bookkeeping tasks.
Simplified Bill Payment
For small business owners, tracking and paying your bills can seem like a full-time job. Using accounting software, you can easily upload and manage your accounts payable. Automatic payment reminders help you stay on top of things, so nothing falls through the cracks.
There’s a smarter way to pay your bills than simply cutting a check whenever an invoice arrives. Using accounting software helps you to review invoice history and notice discrepancies. This helps you to manage your cash outflow and hold onto your hard-earned money.
Providing services to customers does you no good if you can’t get paid for your work. Collecting payments from clients becomes far less of a problem when using digital invoices.
Many customers do the majority of their banking online and prefer to pay their bills electronically. Offering this option can significantly speed up your payment turn-around times.
Reporting features give you the ability to see whether the recipient has viewed your invoice. Using accounting software also allows you to schedule friendly reminders at set intervals. This removes the stress of deciding when to follow up on unpaid invoices.
Maintaining your invoices digitally gives you the ability to track your customer’s information including:
- Purchase history
- Payment habits
- Collections notices
Having a solid understanding of this information puts you in a better position to improve your customer service. It will also give you the ability to segregate your customers and pinpoint your marketing efforts. Get an even better grasp of your cash flow by using customer history to predict when payments will come through.
- 73% have to commit more than 21 hours per year to tax preparation
- 46% spend $5,000 or more on taxes, internal costs, and legal fees
- 40% say that tax preparation and bookkeeping is the worst part of owning a business
- 28% spend more than 6 hours per month performing payroll duties
When running your own business, time is money. Outsourcing accounting and tax preparation can make a huge difference in your bottom line.
When you provide your tax preparer with a box full of receipts or unruly books, he or she may miss important deductions. Using accounting software helps to improve the accuracy of your tax returns. It makes life far easier for your tax preparer and minimizes the chance of a failed IRS audit.
Accounting software helps simplify bank reconciliation. It does the adding for you and makes it very obvious when something doesn’t look right.
Organizing your information within the software makes it easy to create formal financial statements. This comes in handy when applying for loans or preparing to sell your business.
A good accounting software program helps you to stay ahead of your compliance requirements. Avoid missing important deadlines related to taxes, licensing, insurance, and other obligations. The ScaleFactor dashboard shows you all of the standard business requirements.
Customize your dashboard by adding your own special events and deadlines. Take advantage of automatic alerts or set your own notification intervals. Either way, these reminders are invaluable for helping to ensure that you have plenty of time to meet your obligations.
Budgeting and forecasting is a critical element to business success. For most business owners, the process is stressful and complicated. Using accounting software, financial planning can be simple, and even fun!
Smart Forecasting allows you to enter a few pieces of information and create unlimited “what if” scenarios. Beautiful reports help you to identify your primary risk factors and exciting opportunities.
Using this software, you can easily track your progress. Compare your business plan to your actual results with the click of a button.
Records kept in boxes or filing cabinets are vulnerable to damage from fire, flooding, or theft. Keeping your data online helps to ensure that it isn’t compromised, and systematic backups protect your business from data losses.
To protect yourself, check your software provider’s encryption levels. You should always insist on 128-bit SSL encryption. This higher level of security keeps hackers and other unauthorized individuals from accessing your valuable data.
Inquire about any additional security methods the provider has put in place to protect your information. This may include safeguards like secure servers, privacy policies, and two-factor authentication.
The ScaleFactor Difference
ScaleFactor offers an in-house team of trusted professionals. The staff ensures your monthly statements are accurate and notifies you of potential problems. This level of support is lacking in most other accounting software programs.
Business owners often don’t feel 100 percent confident in their bookkeeping skills. ScaleFactor offers the peace of mind in knowing that you have a second set of eyes on your books.
Enjoy the best of both worlds by combining in-house software with trusted professionals. This service typically ends up being a fraction of the cost of hiring a professional bookkeeper.
4 Steps to Simplifying Your Business Accounting
Using accounting software can make a major difference in your business. Some owners may still be hesitant to make a change because they think it will be too difficult or time-consuming. ScaleFactor’s four-step process takes the stress out of using accounting software.
Step 1: Schedule a Demo
Discuss your current business needs with a professional advisor and schedule a demo. This is your opportunity to view first-hand the key features the software has to offer. A live demo allows you to ask questions and tailor the experience to your unique needs.
Step 2: Process Analysis
Receive a review of your current business systems and processes. The ScaleFactor team will use this information to show you exactly how the software can make your business better.
Step 3: Proposal Review
Review the results of your analysis. This will include clearly-defined procedures and a summary of potential benefits. Discuss in detail how the program features fit into your unique business structure.
Your ScaleFactor expert will provide you with a proposal for engaging in a partnership with the company.
Step 4: Enjoy Stress-Free Accounting
Once you have completed your review, a dedicated account manager will reach out to welcome you to the platform, ensure you are able to access the software, and guide you through setting up your account.
You’ll soon be impressed with how easy it was to make the switch and how quickly you start to enjoy the benefits.
Are You Ready to Experience the Benefits of Using Accounting Software?
Scale Factor provides powerful financial and accounting software combined with skilled support. Outsourcing this critical task can dramatically improve efficiency, freeing you up to do the things you do best.
Before committing to any accounting software program, it’s recommended that you speak to others who have used the system. These customer testimonials will help to get you started.
Do you still have questions? Contact us today. See for yourself how ScaleFactor’s innovative accounting concept can improve your business and your bottom line.