Performing business accounting on paper ledgers is an extremely complicated process. Business accountants must track endless details such as an operating budget, accounts payable and receivable, taxes and other expenses and compliance with governmental regulations, just to name a few. Even in a small business, manual accounting can quickly overwhelm one person, and a full-time accounting staff is not inexpensive. For simplicity, cost reduction and peace of mind, consider switching to a computerised accounting system.
Limiting Human Error
The biggest advantage of accounting software for businesses is that most software available has an automated system that checks for mathematical errors. Errors in accounting can occur easily when done by hand. When errors do happen, they can create chain reactions that cost a company untold amounts of money and time as they must determine how the error occurred, what other areas of the business's finance it affects and how to prevent similar errors in the future. Having a system that is fully automated reduces the possibility for human errors.
Automated Report Generation
Accounting software has the ability to generate reports on demand--something that could take a team of humans hours or days. These reports can be customised to what the company is spending money on, such as rent, day-to-day operations, salaries and marketing. In addition, when used properly, this feature can assist the business in its budgeting needs, telling executives in a quick and easy to use format exactly where their money is going. Reports empower executives to make informed decisions, and having instant access to them can only make success more likely.
For record-keeping and compliance with the law, businesses often must keep financial records for years. It is extremely difficult to keep copies of paper records in multiple locations, and a catastrophic incident that results in the destruction of paper records can damage a business in many ways. With a computerised accounting solution, files and important financial information can be stored online or on off-site data cartridges--or both--giving a business the level of redundancy that it needs to recover from a catastrophe and ensuring compliance with all applicable data retention laws.
Accounting can become expensive for businesses, as the level of work can result in the businesses needing to hire an accounting service on contract or hire several full-time employees. Accounting software eliminates much of the manual work, which may allow you to reduce your full-time staff and lower your costs. Indeed, because so many tasks can be automated, a full-time accountant may not be necessary at all.