If you think that starting your own business is a stroll in the park, then you might be in for a rude shock. A lot of interrelated tasks come into play. Aside from developing good products and having enviable services at your disposal, you still have a responsibility to sell to the market.
One of the most essential considerations in running a business is the ability to effectively manage your finances. The numerical language of any business, whether big or small, is accounting.
The business space is always loaded with work pressure. There is an unerring need for effective and efficient handling of accounts and finances of a business. Every small & medium size business with a strong prospect for growth need to be organized to achieve success and to do this the business owner must incorporate the appropriate accounting structure.
Business units set goals, be it short or long term and to reach those goals, management accounting information is required for planning, decision making and sound strategy formulation.
Manually engaging all the accounting work can be troublesome and prone to a lot of errors. Pressure and frustration which can terribly affect the business are just a few of the challenges one will encounter doing it manually.
As the owner of a small and growing business, you have to know where funds come from and where it goes. If you decide to do accounting tasks manually, it will undoubtedly consume a great portion of your time, expose you to challenges not budgeted for and the intended purpose for which the accounting information is required will be defeated.
So, the smartest way around it is having your business run seamlessly on accounting softwares.
Below are some of the benefits you’ll derive using an accounting software
- You can easily access your business status at the click of a button and at a glance you’ll see the picture of your business – establishing debtors (receivables) position, bank balances without calling your banks’ accounts officer, know when payment is due to vendors, extract financial report of your business and for relevant period
- You can finish all the accounting tasks promptly. You will be able to manage your growing business without too much hassles
- You’ll have amazing business tools to make accounting tasks a lot simpler. That way, you can manage all the financial information of the business effectively.
- Insights that help you make better cashflow decisions for the business.
- Customised dashboards and management centers so that you stay in the know of what happens in your business
- Amazing tracking system for inventory thus helping the business bottom line
- In-depth audit and security functions that helps protect your business in the event of fire outbreak
These are just a few of the benefits amongst others that a business owner should derive using an accounting software. Moreso, accounting software usage cuts across all industry where there is an exchange of money – buying and selling taking place.
In making a buying decision for an accounting package, there are a couple of variables to consider. One of which you have to determine the software’s functionalities. It should be user-friendly and moreso, it should resemble the paper counterpart so there’s no confusion when the package is finally deployed. Once you’re familiar with the software’s layout, you can easily explore its functionalities.
No doubt, there are a couple of accounting softwares sold off the shelf in the market. If your business is making less than N1b in revenue, then Sage 50, formerly known as Peachtree is the best for you. But if your business is churning out N1b and above in revenue, QuickBooks readily comes to mind.
In choosing accounting packages, you also need to consider your staff strength. You can find accounting software that is suited for small businesses with less than 25 employees. Some other softwares are suited for large businesses with bigger number of employees.
A software that is suited for small businesses helps the business owner analyze financial data, customize reports like transaction history, income statement (profit or loss), statement of financial position (balance sheet) check details, reconciliation details, and many more. By simply looking at the various reports, you can already determine your business status. Some software also offers built-in features like forecasting tools. These tools can be used to manage business risks and control cost of operation.
If you’re running a small business, it is time to do your business a whole of favour by engaging accounting software. By doing so, you can secure your business’ future and you can be certain that all your accounting & financial tasks are handled effectively.
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