Gateway Commercial Finance

The Advantages of Using Accounting Software

Accounting Software Makes Managing Your Business Much Easier

You did not start your business to spend your time handling paperwork—filling out forms, filing returns, billing clients, and paying bills. You want to spend your time focusing on growing your business. You want to spend most of your time doing the things you want to do—the reason you started the company in the first place! While it appears to be a daunting task to keep track of all the things you need to do to run your business and be in compliance with tax authorities, a good bookkeeper and accounting system will solve your “back office” problems and give you the time and control to run your business effectively.

Accounting software will make your life much easier! It will track your sales, accounts receivable, accounts payable, and bank transactions and provide you with a host of reports to run your business better.

You can print your invoices and checks. You may want to send your invoices electronically rather than printing them, saving your company paper and postage and getting the invoice in your customers’ hands more quickly. Also, most accounting software interfaces with spreadsheet software, so you have added flexibility in viewing your business statistics. The software may include payroll software (usually at an additional cost), providing you with weekly, monthly, quarterly, and annual reports for analysis and tax filings. An outside payroll service such as ADP or Paychex should be evaluated if you have four or more employees. These services are inexpensive, save time, and ensure all payroll taxes are paid and returns are filed on time.

Many Packages Are Not Expensive And They Are Simple to Operate

There are several excellent accounting software packages available. The cost and installation vary depending on the size of the company and the type of business you are in. For less than $200, you can purchase an off-the-shelf accounting software package that will provide you with sophisticated reports and tracking of financial results. The price increases for more bells and whistles. For example, accounting software will be a bit more expensive if you require inventory controls.

We recommend finding a bookkeeper and getting their recommendation regarding the appropriate software for your business. Accounting software is relatively simple to operate but requires specific skills to set up, so a bookkeeper certified in the particular software you choose should implement the software for you. The bookkeeper will train you or a staff member to run the software and will be available regularly to review the input and adjust any items needing correction.

An experienced bookkeeper will help you ensure that all local, state, and federal returns are filed on time and comply with regulations. When financing the business, the bookkeeper will help you compile the essential reports to meet the finance company’s requirements.

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