Published on 19 March 2012
Karla Dennis stated earlier this year that many SMEs are making bookkeeping errors that would otherwise be avoidable if small firms instead adopted accounting software rather than filling important documentation manually.
Small businesses should pay just as much attention to their financial processes as any big enterprise. If small businesses take for granted issues such as expanding their business, managing payroll and cash flows, there is every chance they will find themselves in a sticky situation with the tax man.
Small firms may not have the disposable income in the current financial climate to hire specific professionals to carry out important accountancy tasks. However, finance software is a potentially inexpensive addition that can be integrated within an existing system and operated by a current employee with necessary training.
Here are five main benefits of implementing finance software as a small business.
An essential aspect of any business big or small, but many SMEs still make elementary errors when filling in paperwork leaving them in hot water with HM Revenue & Customs. If collectibles are missed, losses will invariably be incurred. Finance software automates the data input process to avoid the inevitable mistakes made by manual invoicing.
Accounting software can be installed and integrated within an existing financials system. As a result businesses require minimal resource in order to manage the software. Effective in-house staff training should suffice. This is also more cost-effective for small businesses than having to recruit staff for separate areas of the financials process.
Small businesses are also attracted to business accounting software as it makes daily routines faster and more effective, halving the workload required for form-filling and data collection. As a result, employees have more time to finish other important tasks within the company.
Easy-to-use finance software generally includes a user friendly interface that offers SMEs instant access to their essential information. With real-time reporting businesses are fully supported by a wide range of tools that can calculate everything from asset management to cash flow forecasting, or even filing a VAT return.
Finance software supports small firms in terms of financial analysis and strategic planning to stay on the ball in the months ahead. It builds the foundation for successful business strategies by enabling executives to forecast, assess scenarios and analyse the potential for vital market trends.
SMEs should not ignore the system-wide benefits accounting software provides. It is robust, fast and secure and can be easily scaled to meet the demands of a growing business. With drill-down, 360 degree data views and remote online access at all times, there's only one system small firms need for their financial analysis and information.
You can compare finance and accounting and accounting software for small business
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