Keeping yourself organised is always a good idea. Your business cash flow needs to be well organised for your ease.
When the tax season is around the corner, all business owners start collecting and arranging their tax data differently. Some bring up piles of receipts or expenses’ slips or a list of revenue and expenses made. In this way, there is a possibility of missing out many expenses and other transactions. Charges by bank and credit card interest are often missed this way.
Using an accounting software would save immense time that one would spend while handling the records in books manually. Accounting software is a much more organised way of record keeping and retracting when required.
Along with the benefit of having a complete data record, there are some other important reasons to keep a computerised record of financial transactions with accounting software.
With the accounting software, a few steps allow you to enter the entire month’s transactions. Credit card transactions in the business can be tracked with ease and finance charges can be posted without being missed.
A digital accounting software will provide your business’ balance sheet and profit and loss statements. These are the most important statements when it comes to assessing your business financial position and status. These help you raise finances for your business.
History of the Business
A proper record allows you to have a comparison of your income statements of the current year with the previous year(s). A manually kept data, on the other hand, would most probably give inaccurate data.
Customer’s History Recorded
Using a software’s recording features helps you to keep track of the customers’ record regarding the purchases and payments. In case of any issues, you would always have a record of transactions with them.
Vendor History Recorded
Instead of writing down a number of checks and tiring yourself out when the due date falls, you can plan the cash flow easily using accounting software. The software also provides reports regarding each vendor. So just like your customer record, you have your vendors’ record marking it easy to know the current position of payments.
Auditing Session Made Easy
When a business has its financial records handled by the efficient accounting software service, the audit is short. Auditors would usually review the bank statements, and if things are in accordance with the software, the auditor may go through random expenses to audit, rather of looking through every detail.
When choosing accounting software for your business, you need to take a good needs analysis, which will look into both financial and managerial needs. Explore both perspectives so that there is no confusion or issue in the future. Make sure that you are financially literate. One of the common mistakes businesses make is to depend on the accounting software completely and not knowing anything about financial accounting.
We can provide advice on all the major accounting software packages available to you including Xero, Quickbooks and MYOB. For advice, give us a call on 07 3510 1500 and speak to one of our bookkeeping experts today.