5 Reasons Why You Need An Accounting Software Program

If your small business is growing fast, there will come a time when the accounting tasks are more than you can track with pen and paper. There are too many automated accounting software solutions available to continue manually recording all of your financial transactions. If you are still using ledger pads and adding machines to track your company’s finances, consider these 5 reasons you need an accounting software program.

1) An Accounting Software Program Saves Time

Accounting software programs are powerful tools that increase efficiency and streamline operations. They save time by executing many common tasks automatically, such as mathematical calculations, and eliminating many redundant tasks. Information can be accessed much faster compared to searching through file cabinets, and detailed reports can be produced in a fraction of the time required for manual research and preparation.

Accounting programs are able to track inventory, create financial databases, and produce tax filings based on your business’ unique needs. For example, a small business might value the ability to better track expenses and file taxes, while a larger business would want better inventory tracking and record archives. Accounting software packages allow your company to access the specific information that’s important for your operations faster and accurately.

2) Accounting Software Program Automation Simplifies

In order for a company to operate efficiently, financial information must be accurate and readily accessible without special expertise. Accounting software programs consolidate multiple information databases while eliminating discrepancies caused by the manual input of data and calculations. It simplifies the management of your business by making many functions easier to execute.

For a business to be efficient, proper management of time and resources is crucial. Accounting programs are able to automate and simplify the financial processes and increase efficiency. Automated systems require minimal effort from business owners. Throughout the applications, functionality automatically executes the recording of financial data. With a click of a mouse, you can import receipts, bill every client, list every expense, post all revenue, and produce the reports that document those transactions.

Accounting software programs are simpler for the users as well. Manual accounting systems require more expertise, concentration, and training because you are executing all calculations and transactions. By automating many of those functions, the user need only know how to operate the software; s/he doesn’t have to know how to perform the software’s functions.

3) Accounting Software Programs Provide Automated Tax Filings

Using an accounting software program to maintain accurate tax records protects a business from the hassle of IRS audits and the potential fines and penalties for inaccurate filings. Accounting software programs automates tax preparation and produces the forms that have to be filed. The leading programs include modules for state tax reporting as well and are updated annually, or as needed, to comply with the newest tax laws and regulations.

4) An Accounting Software Program Will Eliminate Errors

By eliminating many of the human decision-making and data entry tasks, accounting software programs minimizes the potential for error and miscalculations. Decreasing the probability of errors creates a more streamlined and reliable source of financial information about the company that empowers senior management to make better decisions, earns credibility in the market, and identifies issues before they become big problems. Financial inaccuracy also affects customer relationships when a business is unable to provide error-free documentation of purchase orders, invoices, bills of lading, and freight receipts.

5) Better Reporting

The financial information about the company stored in accounting records is a wealth of information if it can be analyzed and a report produced to document the conclusions. Creating a spreadsheet, chart, or graph by hand is a time-consuming effort with many opportunities to make a mistake. On the other hand, accounting software programs can produce hundreds of such reports in seconds. An accounting software program is able to organize and interpret data to formulate solutions and financial reports for almost any business need.