Mani Malarvannan |
Mani Malarvannan is cofounder of Cybelink, a company specializes in
small business financial and accounting outsourcing like Bookkeeping,
Tax, Accounts Payable, Accounts Receivable, etc. For more info visit
www.cybelink.com. |
Mani Malarvannan
has written 9 articles for SB Informer. |
View all articles by Mani Malarvannan... |
Small Businesses Should Use Accounting SoftwareTop Ten Commandments Mani Malarvannan
September 03, 2007
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Accounting is the financial process by which a business is
able to summarize the costs it has borne and the profits it has made. Here are
the top ten reasons why small businesses should invest in accounting software.
1.
The Value of Good Bookkeeping Bookkeeping is an essential part of any business and is
especially important when it is time to calculate the tax due by the company.
Using accounting software can save the small business the cost of hiring
someone to look after the bookkeeping for the company
2. Accounting Software
increases productivity
Just because your company has been doing it’s accounting by hand and has
collected tons of related paper work doesn’t mean it cannot change. It is
important that accounting is handled in the most professional manner accurately
without any errors. All it requires is the business data to be entered into the
accounting software. By spending less time you
can achieve more using accounting software.
3.Accounting
Software is a multipurpose software
Accounting software does more than just help small businesses keep a track
of their expenditure, debts and receipts; it can in fact also create pay rolls,
invoices, print checks, pay outstanding invoices, track overdue invoices,
scheduled transactions, accounts payable, accounts receivable etc. Thus the
software can help the small business keep a track of virtually all its
financial dealings and ensure that no payment or bill is missed.
4. Tax calculations is
made easy by this software
Small businesses like other businesses have several financial and tax
responsibilities to keep in mind when preparing their quarterly and year-end
financial statements. Your tax professional will only be able to provide you
good advice and guidance if he or she has access to accurate accounting
information and use of accounting software can make this possible.
5. Banking along with Accounting
Software
The latest accounting software can also be linked to your banking account
through Internet. The business’ banking information can be incorporated by the
software to make relevant calculations, transfer of funds and deposits.
6. How Accounting
Information is Convenient
Using an accounting software it is simple to send data and information to your
tax consultant or to an outsource service provider through email to work on
your accounting and financial data. For Small businesses this saves significant
time and money as they can also maintain critical data like inventory,
transactions and maintenance within their accounting software and can take
various reports like inventory level; goods order status, goods shipment status
etc. In nutshell small businesses can view their entire company’s financial
pulse using their accounting software.
7. Accounting Software
can be mixed with other Softwares for Better Use
Most accounting software allow other software programs such as Microsoft Office
and other related business application to integrate with it so that this
simplifies the data sharing between other software and accounting software.
8. Accounting Software
is user friendly Any small business accounting software like QuickBooks, Simply Accounting, Peachtree, MYOB, Microsoft
office small business accounting , etc., is easy to install and use. These
accounting software comes with manuals and tutorials for you to read and
understand the software. The initial installation and setup may be little
difficult and you may hire outsource service providers to remotely login to
your computer and do the setup. Other option for small business is using Application Service
provider (ASP), in this accounting software model small businesses can use
other companies accounting software for a monthly fee.
9. Forecasting coupled
with planning
Accounting software can assist in keeping the small businesses in forecasting
their current and future business strategies. They can easily compare their
past and current data in various reports, graphs and can use their business
data for planning and forecasting purposes.
10. Best practices
Using accounting software small businesses can instantly increase their
operational and business efficiency by the best practices offered by the
accounting software. By managing customers, vendors, partners, inventories, etc
in the accounting software it becomes easy to manage and maintain it. Any time
lookup, modification, adding of these data can be easily accomplished using the
accounting software. Overall the productivity of small businesses increases
with the accounting software. No matter what type and size of small businesses you have, the need for
accounting software is a must. Though you may run your small business without
any accounting software, if you want to run your business efficiently and
effectively with less resources and high productivity then accounting software
is the right choice for you.
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