When I first opened my business, I thought I was going to have to pay an accountant a large salary to help keep my books balanced. I didn’t feel confident in my ability to handle it myself, and I knew that mistakes could cause major problems for the future of my business. When I finally found accounting software that was easy to use, I was able to free up the costs associated with hiring an accountant. With today’s programs, anyone can be their own business accountant by choosing the right user-friendly accounting software. Dealing with Multiple Data Sets Thejob of an accountant involves dealing with multiple data sets: sales, accounts receivable, accounts payable, inventory and payroll. For most business owners, dealing with all these numbers manually is too time consuming and complicated. That was the exact reason why hiring an accountant was necessary in the past. However, now there are accounting software programs that deal with all of those things and more. I can be my own accountant without investing a great deal of time or money. Accurate Numbers I know my numbers are accurate because computers don’t miscalculate numbers. They work with precision and accuracy using the data that is entered. It does take a few hours each week to enter all the numbers that have to be calculated, but my bookkeeper handles this simple data entry. It only takes a few hours at the end of each week to input all the different sets of data. Access to Data Another benefit of using accounting software is that I have all the financial data that relates to my business available at any time. There have been times when I suddenly needed additional funds, and being able to create my own reports instantly allowed me to provide the lender with an accurate financial snapshot. I didn’t have to wait for an outside accountant to prepare those numbers. Excellent Records Studies show that businesses with poor accounting records tend to fail. Good record keeping allows me to understand exactly what is happening with my business finances. When accounts are not updated often enough, it becomes difficult to determine current and future financial needs. Using reliable and easy-to-use software makes it possible to update accounts on a regular basis without paying a large fee each time it is done. Controlled Expenses Using software also allows me to control expenses associated with managing these records. Accountants are typically paid by the hour, not by the job. Software, on the other hand, lets me predict with accuracy what I will be spending on accounting software and record keeping. I can keep very detailed records without paying someone to spend hours managing all that data. Increased Flexibility Another benefit is that I get to decide how simple I want my records to be. As my business grows, I can add new categories, but I don’t have to consult an outside accountant to change my list of information I want to track. When I budgeted for an accountant, I was overwhelmed by the costs that would be associated with tracking and calculating the various numbers associated with running my own business. Finding great software that was easy to use helped my business’ bottom line. While accurate record keeping and accounting software is imperative for a business of any size, it is no longer necessary to spend a lot of capital on that expense. Using good software to do my own accounting has given me control over what is happening with my business, provided immediate access to my financial records and saved my business lots of unnecessary expenses.
Rehan is an entrepreneur, business graduate, content strategist and editor overseeing contributed content at BigdataShowcase. He is passionate about writing stuff for startups. His areas of interest include digital business strategy and strategic decision making.