For any business, accounting is vital, even more so if you want the business to be successful. We know, however, that for many it can be confusing, difficult or even boring. It is part of your business that however much you dislike doing, it must be done. If you are looking to grow your business, it becomes even more essential as you need to show accurate and up to date information to external parties, whether that is potential investors, business partners or banks. Accounting software can bring all of your needs under one roof by managing and processing financial data. This allows you to focus on the aspects of your business that you enjoy and are comfortable with at such an important stage in your life. If you get it right, it becomes essential and will substantially improve all things finance in your business, from bookkeeping to tax accounting.
In this blog, we will explore how the use of accounting software can enable your business to grow.
More Efficient Processes
Accounting software increases efficiency as it can manage all aspects of your accounting. From account receivables to accounts payable, general ledger and many more.
Accounting calculations can be complicated and – to many – mundane. The purchase of software allows the performance of automated calculations with complete accuracy. On top of that, all of your data will be in one place, on one platform which makes it easy to refer to historical financial data. Traditionally, this would be done by trawling through old papers or spreadsheets. Considering these factors, businesses find it necessary to incorporate accounting software.
Automated Cash Flow Management
A big issue that businesses can find themselves having is a lack of cash flow. This may be down to external factors, such as recession, but often it is internal through a lack of planning or a poor accounting process.
The use of accounting software can turn this around as well as providing many benefits. It delivers businesses with new insights into their cash flows and payment processes.
On top of that, the software can do all the leg work for you and will do your calculation. As a result, the level of error is far lower than that of a traditional calculation.
Accounting software will track all of your transactions. It will do this coherently as well as implementing new products and services.
Reduce Your Costs
The efficiency of time that is delivered by accounting software means that essentially your overall costs will be reduced.
The reduction of time taken to complete tasks traditionally is the main reason how accounting software will reduce your costs. This is due to each member of the team working more efficiently.
This happens by either reducing the accountancy payroll and administration costs or by reducing your time on administration.
Accounting software automates the main calculations and administrative procedures. This allows you to manage the revenue framework therefore removing the need to outsource such tasks to an external organisation.
Modern Invoicing
If you have a small business that you are looking to scale, you need to ensure that your invoicing system is in place and is seamless. Traditionally this would entail going through all of this information manually or by using a spreadsheet to track and log the information.
Thankfully, software like NetSuite will do all the hard work for you.
Sending a invoice to your clients digitally is convenient for both your business and your customers. After receiving the digital invoice, customers cab quickly and easily send their payments. This is literally done with the click of a button that provides a fast and efficient process for all parties.
Protect Your Data
Your business’s financial data is the most valuable asset in your business and if this were to be lost or fall into the hands of hackers, it could be catastrophic!
Accounting and finance systems prevent your data from being compromised. They even take backups of your data for these types of situations.
NetSuite, for example, comes with 256-bit encryption – which is the same level of encryption online banks use – for every activity. Essentially, this means that all data in NetSuite is as secure as an online bank transaction.
Customer Relationship Management Tool
Some may think that accounting software may have nothing to do with customer relationship management.
However, software increases the efficiency in billing and invoicing which means that your business is in automatically in contact with your customers and reduces delays in billing and invoicing as well as, importantly, reducing miscommunications.
Using Netsuite can make your business more credible and professional as you have processes in place that allow you to keep in regular and and consistent contact with your customers performance appear more professional and credible.
Today the use of accounting software is becoming more and more the norm for businesses, especially those looking to scale. For potential business partners, investors or banks, if you have the necessary data in an easy to access and readable format then you are already one step ahead of those who do not.
Cofficient can tailor your NetSuite package to your specific needs and provide you with a level off support that will help you make accounting processes easier and more efficient. Book a free demo to see how we can help.
