3 Benefits of Accounting Software

| September 25, 2015 | Technology

Good news business owners: the days of organizing over invoices and receipts in an old shoe box or risking eyestrain over lengthy spreadsheets are over. Accounting software has revolutionized the way small businesses manage their finances, making what used to be a cumbersome and time-consuming process much more simple and efficient.

Learn how accounting software can quickly streamline efficiencies, minimize the margin of error, and improve the bottom line for your business. Here are our top 3 reasons you should switch to a better method for balancing the books.

1. Say goodbye to hours of data entry

Perhaps one of the greatest benefits of accounting software is all the time you’ll free up. You’ll no longer spend agonizing hours matching receipts to bank statements, or trying to track that missing invoice.

An online accounting system allows you to manage all your invoices and expenses in one place — and even process payments – significantly reducing the time spent manually entering data. At the same time automation streamlines account reconciliation and minimizes errors.

You can further reduce manual data with receipt management software that keeps track of your expenses – even on the go – in a snap. A mobile app like Xpenditure allows you to take a photo of an invoice or receipt on your phone and the data is instantly and securely stored in an online database for later access.

2. Integrated reporting makes tax time easy

Another great perk of accounting software is that you can quickly generate a range of financial reports including balance sheets and profit and loss statements. You’ll have instant access to your latest sales figures, allowing you to make more informed decisions about cash flow. A more accurate look into your company’s finances will improve budgeting, planning and profitability.

Investing in a software package designed for Canadian business owners will also make invoicing and tax reporting easier. Sales tax is automatically calculated by province or territory, so your numbers are accurate when it’s time to submit taxes to the Canada Revenue Agency. Flexible report summaries will make calling up the numbers for end of year tax reporting a cinch.

3. Save time with a centralized approach to finances

An all-in-one accounting solution is very cost-effective for small businesses. By automating routine financial processes you’ll free up your finance staff so they can focus on more important matters – like tracking down vendors whose payments are past due.

A centralized approach to finances makes everything from payroll to accounts payable simpler by streamlining your process. As an added benefit, many accounting software packages come with built in project management tools to help you track project deliverables and tasks, as well as spending.

Recommendations

  • Explore the features and savings available from Sage One accounting software with this special offer in the MasterCard Business Owner Toolbox.
  • Simplify your accounting system by using a business card for business expenses. Explore the features of a MasterCard BusinessCard®.
  • Set aside some time each day or week to update your accounting records so you always have the latest information available.