Benefits Of Business Accounting Software

Unless you’re running a small business with very few transactions in the year, using a pen and paper ledger is not really an option. These days, the majority of business accounting is completed using accounting software. Accounting software allow business owners to manage your business’s finance at the touch of a button. There are a wide range of products for business owners to take advantage of. Some programs are designed for little more than simple bookkeeping while some are used to manage the entire finances of businesses.

Software for business accounts

A computer-based accounting system will offer many advantages to your business:

  • Less time spent on your accounts
  • More accurate and up-to-date information
  • Cost-saving on bookkeeper/accountant charges
  • Reduction in mundane tasks involved in keeping accounts
  • It’s extremely easy to print, share and safeguard all your records
  • On top of all the above, a computer-based system will offer greater control.

However, depending on the size of your business, you have a few options. If your business is very small, you could simply use Microsoft Excel. Here you can set up your own spreadsheets. At the end of an accounting period (year-end), you would simply forward these spreadsheets to your accountant and they would complete your annual accounts – i.e. profit & loss and balance sheet.

You could attempt this yourself, but I would avoid the heartache if I were you (and that’s not a sales pitch from an accountant!).

If your business is more advanced, you should definitely invest in business accounting software. There are many out there on offer; make sure to choose the best one for you and your business. Your accountant will be able to help here. Most software providers produce a range of packages to suit various business sizes.

  • This software will be able to complete all the essential tasks for your business, including:
  • Production of management accounts to any date (i.e. monthly or weekly)
  • Profit & loss account and balance sheet (completed automatically, based on details entered)
  • Provision of at-a-glance key indicators of your business like profitability and liquidity
  • Debtors and creditors reports, showing individual accounts, amounts and period involved
  • Reconciliation of bank account

Accounting software is an advantage tobusinesses because they enable business owners to perform day to day accounting tasks efficiently and accurately. When you use business accounting software, you can easily store and access financial records, make changes when necessary and you no longer need to hold on to annoying paper files. However, in the event you need paper files for a bank or end of year accounts file they can be easily accessed and printed.

For most small businesses, there accounts are confidential and should only be accessed by certain people. The security of your business accounts is also improved as access is restricted by passwords to protect financial records. In general, we advise our clients who are running established businesses to use Big Red Book while our start-up clients tend to use Surf Accounts.

Our team at Russell and Co. Charterted Accountants can advise you on the best software to suit your business. We also specialise in a variety of services including business coaching, taxation and forensic accounting.

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