I know of too many small and medium-sized businesses who are relying on monthly bank statements and spreadsheets to track their business finances.
There are many reasons why you should be using accounting software instead of a spreadsheet or worse, a notebook!
- Simplify data entry – inputting data is fast, straightforward, and only needs to be carried out once.
- Automate reports and analysis – profit and loss, debtors and creditors, customer accounts, sales, forecasting, etc.
- Automate tasks – such as calculating payroll, sales tax, schedule recurring invoices, etc.
- Manage inventory and purchases.
There are many choices out there, from online accounting such as Xero, to the often intimidating Quickbooks. Many small businesses choose to go with Quickbooks because of its ability to easily transfer data to your CPA, but do some research and find a program or service that suits you and your business (and your budget). Quickbooks isn’t your only choice, but it is usually the most recommended one.
Find an accounting application or service that meets your business and budget needs and start using it. I promise you will be glad you did (especially when it comes time to file taxes or report inventory to the county for business property valuations!