The Advantages of Accounting Software

Date: December 20, 2016

In the digital age, it seems like every other article wants to talk about how incorporating technology into every single facet of your business is the be-all-and-end-all. You just have to do it. That said, for some businesses embracing technology is the only way to grow.

Here at Alexander & Co., we work with accounting software to make sure your accounts are kept completely up to date, secure, and free from errors. We’re aware of both the advantages and disadvantages of accounting software – it’s important to note, however, that the advantages far outweigh the disadvantages. This article is going to look at a few of the biggest points to help you make the decision to invest in some software – the time has passed for Making Tax Digital, so if you’ve not yet switched then you need to act fast.

The importance of accounting software

The rise in popularity

One aspect of technology geared towards businesses in recent years is the wealth of accounting software packages. While there are many benefits and plenty of great software packages out there, it’s important that you know what you’re looking for before making an investment and understand how these software packages can benefit you and your business.

Ease of use

Many packages are aimed at those with little accounting experience, but it may take a little time to get to grips with the layout and features of the software. Once you’ve been using the package for a while, you’ll start to get the hang of the features that you use the most and your accounts will become streamlined and easier to monitor.

Maintenance

Now that many accountancy software packages are available online, maintaining the software is easier than ever. It also means that if you work remotely and travel a lot, you’ll be able to log on and keep your accounts up to date no matter where you are. This is another reason, however, that having an accountant to help you manage your business accounts is so important. You may find yourself without the technology or internet connection to allow you access to your online account, which is where having an accountant can come in handy.

Make sure you conduct any updates suggested and backup all your accounts to your computer or, even better, an external hard-drive. Making sure you have copies of your accounts can protect you from any tech issues and keep your records safe.

disadvantages of accounting software

Cost

Although accountancy software is an extra monthly cost, it is an investment well worth considering if you desire to spend more time working on your actual business. The time you save using the software will allow you to focus more on the tasks that can help your business grow and develop. There are so many different types of software available at all price brackets, so why not ask your accountant which is best for your business and budget?

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Time

Invoices and processing all the expenses in accounting software usually takes more time than simply logging the expense into Excel or ledger pad. However, it can save 10x the amount of time when it comes to filling in your self-assessment tax return at the end of the year. Particularly with the Making Tax Digital deadline having passed.

If you keep your accounts and expenses in order and filed away, processing these will be even easier and faster. When it comes to making this process more streamlined, organisation is key!

Benefits of accounting software for small businesses

When you’re an SME, your time is precious so you need to prioritise the time you do have on growing the business. To ensure that the admin side of things does not fall by the wayside, accounting software is a must-have. Here are some ways in which it can benefit small businesses.

You’ll improve your digital skills

Having basic online skills is vital, whether that’s because of Making Tax Digital or for simply getting by in our increasingly tech-focused world. Having the right accountancy software that works for you could turn you from a technophobe to an internet wizard.

It’ll be easier for HMRC

With your accounts streamlined, it’s far easier for HMRC to collect your tax-related information. Doing your tax returns has never been easier when they’re done online.

You can see what’s happening in real-time

Rather than burying your head in the sand like some business owners do, accounting software gives you a clear and easy to understand picture of your business’ finances. With regular reports, you can keep on top of things much easier!