Each year business owners spend 41 hours on tax prep activities. This and many other time-consuming accounting activities can be reduced with the right accounting software.
To make your accounting tasks easier, you need to look for the right accounting software features. Without the right features, the software you use to manage your money can actually cost you more money than its worth.
Look for these features when buying accounting software for your small business.
If you can’t pull reports from your accounting software, then it’s pretty much useless. You need to have a way of tracking the money coming in and out of your business. Reports let you make informed decisions for the future of your business and identify potential problems before they are major problems.
Reports will become especially helpful during tax season. You should be able to pull detailed reports about outstanding invoices, debts owed, monthly expenses, and payroll.
Your business may be small right now, but the goal is to have it grow. You need to choose accounting software that can grow with your business. This will let you scale up quicker and more affordably.
Otherwise, you’ll struggle as your business outgrows your current software. Then you’ll need to go through a transition of converting all of your accounting from old to new. Then there’s the learning curve as your staff learns the new software processes.
Ransomware attacks are the biggest threat to small businesses today. Because of this, you need all of your software to have security measures in place. Otherwise, you risk a hacker taking hold of your company from the inside out.
Not only could your entire business get stolen, but it will compromise sensitive financial information. Now you face liability claims from vendors and clients whose financial information is compromised.
Do you have other software programs that are necessary for the running of your business? Then you need accounting software that can integrate with them. This will allow for open communication and automation across departments.
One example of this would be if you have an intuit field service management software. By integrating it with your accounting software, you can manage labor costs and payroll faster.
If instead of a service you sell products, then your accounting software should integrate with your inventory management, warehouse, or shipping software. This will help you manage costs while balancing them against your demand.
If your accounting software has automation, then you can streamline your accounting activities and create more time to be productive. There are a few automation activities you should look for.
- Recurring payments
- Automatic billing
- Past-due notifications
Look for These Accounting Software Features
If you don’t have accounting software or your accounting software is lacking, then it’s time to upgrade. By looking for these accounting software features, you can ensure you find the right software for your business.
For more tips on managing your business finances, check out the money and finance section of our blog.