Why Is Online Accounting Software for Small Businesses a Must?
Written by Eddy Hood
At Ignite Spot, we work with a lot of online accounting software. For small-business owners who need to stay organized, these online tools offer a lot. They simplify data entry, organize your vital information, provide reports, and allow accountants more access to important financial information about many aspects of the business. Here are some more reasons why you should incorporate an online small-business accounting system:
Spreadsheets Are Not Enough
Preliminary budgeting and planning could, in theory, be done entirely on spreadsheets. However, as you continue to operate, spreadsheets and/or paperwork can get out of hand quickly. Spreadsheets can be nearly impossible to navigate and easy to lose, and only one person can keep track of changes at a time. If you have a shared drive to share that file, more people can change or input data, but one wrong move can be devastating. Also, you should never add to the paperwork that your business already is required to keep track of. For space, money, time, and organizational reasons, the purchase of cloud-based accounting software for small businesses is worth the investment.
You’ll Be Able to Get More People Involved
If you need more than one person to pull reports, change numbers, record new information, or otherwise use the system, you’ll need online accounting software. For small-business owners who work with a team of managers, having software that can be used on multiple devices is a must. Likewise, if you ever plan to work with an outsourced accounting firm, like Ignite Spot, you’ll need a more reasonable way to transfer and communicate information.
You’ll Know More About Your Company’s Financial Health
While accounting software for small businesses can offer unique solutions to companies with a larger group of employees, even one-person micro-businesses can benefit. Without having to negotiate spreadsheet formulas, break out a calculator, or magically dig up information, you can get an accurate snapshot of how your small business is realistically doing. You’ll be able to see not only overall budgetary information but detailed profit, loss, expense, and tax summaries. If issues arise, you can see almost immediately where the problems are.
Your Competitors Are Doing it
Peer pressure might be a good thing to resist in high school, but if your competitors are doing something in the business world, it may be worth looking into. In this case, what you don’t know can hurt you. By saving time and money with online accounting software, your competitors could be metaphorically eating your lunch.
It’s Not as Complicated as You Think
Needing a small-business accounting system doesn’t mean you have to immediately download complicated programs like NetSuite. There are several different programs you can choose from, so for those business owners who fear the cost and navigation of QuickBooks, there are several other simpler and more cost-effective options available.
The bookkeeping and accounting team at Ignite Spot can help you find the software that’s best for you or even help you switch if you find software that better suits your business. For guidance in the process or to learn more about our outsourced accounting services, feel free to contact our firm at 855-694-4648.
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