Your business needs the best cloud accounting software it can afford! Here is what you need to consider before buying!
If you are running a business, it is a good idea to use cloud accounting software (online) to help you with day-to-day accounting. One of the biggest advantages of cloud accounting software over regular desktop based software is that is always easily accessible from anywhere in the world (provided that you have internet access).
Also, you do not have to worry about updating your software or backing up your data, as these things are taken care of automatically. Depending on the size of your business, you should look for different things in a cloud-based software.
Firstly, you should determine the needs of your business and the size of your budget. The more your business requires, the more you will have to pay. The wider range of options you will get (things such as expense tracking, recurring invoices, payroll services and automatic past-due billing) all add to the price.
However, if you own a small business, between R300 and R450 per month should be enough. Also, some providers offer free or trial versions of their software. These versions limit the number of options you can use or let you use the program for several days before deciding if it is the right software for you.
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Depending on your needs, you may not even need accounting software. However, if you do require some of the following features, then cloud accounting software can be a great asset for your business. Always remember that software alone can’t guide you on how to better manage or grow your business, so ensure you get the professionals on board. You may want to read: “How to hire a small business accountant?”
- If you have many clients, accounting software can be extremely helpful, because it lets you organize a database of customer information (their purchase histories, credit terms, and all kinds of other information).
- If you do not know much about laws and regulations, cloud accounting software can easily help you with this and make sure that everything you do is legal and in compliance with the generally accepted accounting principles.
- If you are just starting out, it is much easier to work with accounting software from the very beginning. If you are running an older business, it will be much harder to implement all the spreadsheets and ledgers.
Accounting software saves time, especially if you are looking to grow your business. The less time you have to spend dealing with accounting, the more time you will have for everything else.
If you are still not sure if you are in need of cloud accounting software, here are some of the things that it can help you with:
- Of course, basic accounting services are provided. The software does income and expense tracking, it generates financial reports, it takes care of invoicing.
- They save a lot of time because they automate a number of processes. They provide services such as automatic billing and outstanding invoice follow-ups.
- If you hate wasting your time doing tax preparation, this type of software is a must-buy. Not only does it automatically do tax calculations and tax reporting, it also prepares all the necessary information so you can easily e-mail it to your accountant.
- If you are busy and do not have enough time to sit down and take care of accounting yourself, accounting software seems tailor-made for you because it offers mobile access on your smartphone or tablet.
- Doing manual accounting can quickly overrun your office with tons of papers. However, by using a program, you can, for example, add a receipt to expenses simply by taking a picture.
- You can save a lot of money on bookkeeping as many of the repetitive tasks can be automated
- You do not have to input many of the transactions yourself, for instance, automatic bank feeds retrieve transactions directly from your bank account.
As you can see, there are many reasons why you should not stick with old-school accounting. The technology is developing faster and faster, and accounting software (especially if it is cloud based) has made such progress that there is no reason to not utilize its many advantages.