Small Business And Accounting Software: The Benefits

Managing a small business is fraught with issues. There’s the going concern of financing growth, managing payroll, paying vendors and creditors, proper invoicing and bill payments, as well as the constant issues of managing cash flow. All of these can become a source of great frustration and a continuous drain on the company’s resources. Thus, small businesses must be proactive in managing their operations. To this extent, purchasing the right accounting software is more than just another business expense. It’s an investment that allows small businesses to better manage all aspects of their finances, and an essential tool that empowers them to become more proactive in managing their day-to-day operating expenses. Whilst a number of small businesses view such a purchase as a huge financial outlay, they must temper these concerns with an understanding of the benefits of having a piece of accounting software. So what are some of the immediate benefits for small businesses looking to invest in such a purchase?

1. Financing Growth

Every company purchase must be managed in such a way as to retain enough capital to support the company’s daily operations. The right accounting software can make these decisions easier by providing small businesses with the ability to decide between leasing or buying. Ultimately, it’s about being able to make a “go/no-go” decision on capital expenditures without concern about how such purchases will affect the company’s daily expenses.

2. Managing Payroll

All small businesses are required to correctly file their P35, P34 and P11D forms. These pay-as-you-earn employer forms, or more commonly referred to by the acronym PAYE, must be properly filled out in order to avoid any delays or fines. Manual payroll processes are a thing of the past. The right accounting software can make managing payroll a much easier, and far less expensive, process.

3. Better Cash Flow Management

Properly managing cash flow is an essential aspect of small business success. A strong cash position allows small businesses to pursue prompt payment incentives and discounts with vendors and creditors. In addition, those aforementioned decisions on leasing or buying are easier to make when the company has greater visibility on incoming and outgoing payments. In essence, it’s about allowing the small business to take advantage of those times when it has a strong cash position, and protecting its interests when its cash position is weakened.

4. Proper Invoicing and Bill Management

Every small business owner understands the importance of proper invoicing practices. Whilst a number of small businesses still rely upon manual processes, most comprehend the importance of having an accounting software that can manage receivables in real-time. Do away with manual invoicing. Instead, rely upon a system that manages the customer’s invoices and provides advance warning when those invoices are approaching terms.

Whether it’s purchasing new computers, cell phones, fax machines or simply upgrading the company’s website or blog, making the right decision means having a handle on the company’s finances. An accounting software empowers small businesses to keep abreast of incoming customer payments and provides them with the ability to make decisions that maximize returns.

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Find out how accounting software can make your life easier at the IRIS Accounting Software website.