Managing accounts and bookkeeping are tedious tasks that can end up draining your resources, your time, and most importantly, your money. This is quite an ironic statement, since maintaining accounts is supposed to help you understand your business better and find ways to generate more capital.
The best way to ensure that your efforts of growing your business aren’t negated by the unnecessary amount of time and energy spent maintaining books, use a business accounting software.
Here’s a list of 7 accounting problems that you can solve with the help of such tools –
- Information Security
When you maintain your accounts in a ledger book or in a physical repository like a computer or a server, the chances of your data being manipulated or falling into the wrong hands is quite high. Accounting software helpsin keeping your data secure by utilising extremely strict firewalls and comprehensive security tools. No one can access your data apart from the people who have the authority to do so.
- Lack Of Time
As mentioned above, maintaining and updating the account books utilises your time without making any money. With accounting software, you barely have to spend any time to handle your accounts. Just enter the data and the software will do all the necessary calculations. Some software can even reconcliewith your bank account and download and update your data every month with just a few keystrokes
- Lack Of Experience
Many small business owners like to handle their books on their own. While you may be aware of what needs to be done, handling accounts isn’t exactly child’s play. Even if you’ve got a handy list of formulas ready, you may just be entering the wrong details at the wrong places and messing everything up. You don’t need anything except for basic knowledge of working on a computer to use an accounting software and maintain your accounts accurately.
- Complicated Calculations
Numbers and maths aren’t everyone’s piece of cake. You could resort to using a calculator, but soon enough you’ll be overwhelmed by the sheer amount of factors that come into play while handling accounts. Just get accounting software and you can do all your calculations in a matter of seconds
- Organising Financial Records
Some accounting software like Tally allow you to generate profit and loss reports and give you a clear idea of your business’s financial health. Without such a tool it could days, even weeks, to do the same thing.
- Inaccurate Cash flow Projections
If you make even a single mistake while maintaining your accounts and doing your calculations, you’ll be in a soup. All your cash flow projections will end up being grossly erroneous.
- Budget Constraints
As a small business, your aim is to save as much money as possible to bolster your narrow profit margins. And that means that you may not have the money to employ an accountant. To fix this, just make a one-time investment on an accounting software and save yourself the trouble of finding an accountant and spending the money you can’t really spend.