Running a business can be pretty tough. Although some say that the chances of failure aren’t as high as previously reported it can still be a tricky course to navigate. And a common pitfall that business owners come across is money. Money can be difficult to manage. While you may have a brilliant strategy, excellent marketing, and a stellar product or service it will all fall in a heap if you can’t manage the books. Thankfully it’s 2018 and you don’t have an excuse for not utilising any and all technology at your disposal to get ahead. So let’s check out what the best accounting software options have in common.
Knowing when and who to pay
The best accounting software should keep track of all the money you owe your vendors, and when and how much to pay them. After all, these are the folks that keep your cupboards and warehouses stocked, your shelves full of products or your lights on. It’s really important to maintain great relationships with your suppliers so look out for a software that can keep track of the money you owe and ensure that you pay it in good time. On the flipside of that…
Knowing when, and how much, you are owed
Awesome accounting applications will be able to track your accounts receivable, so you can rest assured that you have a steady amount of income. Ideally, the best software for you should be able to automatically issue invoices and statements, track your income and be able to report it in a neat and tidy fashion – this is especially useful for the end of financial year when the taxman comes knocking. Speaking of reports…
Reporting and analysis
Great accounting software should have robust reporting and analysis features. Reporting is essential if you are accountable to a board of directors or to your shareholders. If you’re a smaller fish, reporting can still be useful. You can use it to get a birds’ eye view of your finances and make adjustments as necessary. Or you can use it in presentations and pitches when you’re looking for a new partner or trying to convince a venture capital firm that your business is worth their investment. Analysis is also a great feature because you can see where, if anywhere, you’re bleeding capital and try and rectify it.
The best financial software systems can automate many processes that used to require human effort. For example – payroll. Instead of hiring a full-time position, or team, to pay your employees you can rely on software to do it for you. Of course there’s a bit of work in setting it up and there is room for machine error, but good software will have excellent customer care behind it in case something goes wrong. If there’s a mistake a fix will be a short phone call away.
Safe and secure
Excellent accounting software should offer high-level encryption to keep your data, and your money, safe and secure. Encryption stems from the World Wars when radio transmissions would be sent in code to keep the enemy from knowing battle plans and strategy. The same principle applies but the tech is much, much more advanced. All you really need to know is that your financial systems are kept under digital lock and key.
There you have it
We’ve summarised what the best accounting software tools have in common. They will help you track accounts payable and receivable and offer a sound reporting and analysis feature. They will also be able to automate processes and systems and encrypt your precious data to an extreme level. All in all, it means that you have more time to focus on what matters – growing your business.