Many small business owners have been turning to accounting software for their bookkeeping needs. Software can be used with or without an accounting department, depending on how lean your business is. Accounting software has stepped in to fulfill the need of monitoring financials and minimizing errors in account processes, so does your small business need an accounting software?
What Are the Benefits of Accounting Software?
This software exists to streamline accounting processes and allow or less administrative duties for the accounting department. Automating or simplifying the bookkeeping process of doing business means having the time to make sales, develop products, or otherwise grow your business.
- simple reporting
- invoice tracking
- tax filing
- budgeting
Simple Reporting
Accounting software offers simple reporting features to view your financial health. These reports are beneficial to shareholders in the company as well as for applying to financing. Business financiers require a picture of your financial health to evaluate need and risk, and this can be a daunting process without the right tools in place. Bank loans in particular require reports like profit and loss statements and balance sheets.
Invoice Tracking
Accounting software allows for the inputs of purchases and sales. Monitoring your aging invoices is important to getting paid. Managing accounts receivable means improving cash flow. Having the ability to view your payments in one dashboard means ditching the headache associated with receivables management.
Tax Filing
A tax lien on a small business can affect operations and access to business funding. Unless a small business lender offers funding through IRS tax liens, your business can lose its source of funding. Accounting software that automates the receipt and tracking of sales makes tax preparation simple and can lead to a higher refund.
Budgeting
Having records of money in and money out means having a clear picture of your business’ financial health and capabilities. This makes budget creation simpler. Each year you need to revisit your business plan and adjust your budget according to your projections and actual volume of business. This can be an arduous process without invoice tracking or receipts.
The Importance of Accounting Processes in Business:
Outsourcing Receivables Management
Overall, accounting software helps small businesses outsource the bulk of their receivables management and cash flow monitoring. This helps grow a business by saving the owner time and resources when it comes to finding business financing, filing taxes, and making budgetary decisions. A company like Eagle Business Credit helps small businesses in Cumming, Georgia and across the United States in credit management and cash flow health. Having a factoring company manage your receivables is just an added bonus to small business funding and credit protection. Give Eagle a call if your small business needs financing to grow without the lengthy process or financial statement requirements that a bank loan requires.