A number crunching geek by day and a fun loving gamer the night is how he likes to explain himself. David Shaw is one of the best accountants in his area of expertise who has been working as an accountant for about a decade. He now shares his wisdom with the world.
Advents of technology have transformed almost about everything in this world and financial accounting is no different. Today the advents of technology have made life easier for entrepreneurs, small business owners and even large businesses to ensure swifter and more effective solution. The major and immediate benefits of using a financial software solution for your accounting needs would be:
Cost effective solution is the most effective approach for business owners just commencing their business. Accounting software has cut down the operational costs many folds. Costs have been cut down on stationary, workforce, and several other indirect ways. A cut down on workforce also saves costs on seating, electricity, computers that would have been required with a larger workforce previously required for accounting solutions. When it comes to small businesses, even the owner can manage accounts using a software completely avoiding the workforce costs. One of the most important benefits is the cost effectiveness of software-based accounting solutions.
Machines have long surpassed humans on this front. With a software, the margin of human error is reduced many fold especially when it comes to computing the numbers. The only margin of error that remains is in the feed that has been supplied to the software, however, the software does not only compute the number down to the last digit but also allows you to make quick fixes that use to take hundreds of minutes when things were done on paper. The accuracy of your accounts heavily weighs on your taxation and audits. A financial software keeps things simple for you.
Ease of Access
Most financial software has extensions that can be placed on the cloud. Cloud has made lives easy with ease of access. Business owners can now view, edit, update and audit their account on the go while they are on a business trip. The best part is that they don’t need a computer for these operations financial software are readily accessible through smart devices whether through direct websites or mobile applications. Even most of the free financial solutions have developed a complete on a go solution with mobile applications for all major platforms. User management also helps you locate where the changes were made and by whom to ensure transparency.
The financial software also creates ease of taxation compliance since most solutions are developed to take care of your taxation and audit needs. This means that at the end of the year your accounts would be ready for tax return filing and audits. The accuracy of the software also allows you to roam free of trouble since it ensures that every single penny has been accounted for, or promoted to the software administrator – business owners and accounting employees – for accountability.
On the other hand, centralization is also very easy through financial software since cloud computing allows you add many users even in the remotest of the locations. No need to worry if your accountant is on a vacation and you need a quick check. Happy Accounting!
Small Businesses often ignore the power of accounting but if you are reading this post you understand what an accounting management system can do for you. The very success of a business relies on the accountability, revenues earn and the credibility. What some business owners fail to understand is the fact that clearer the numbers easier it is to run smooth operations. For those just getting started on accounting front, we have 5 simple tips to help you create an effective accounting system.
Create Simple but Effective Books
You are just starting out and there is not much to manage but when as you’d continue you’d understand that you should have started on this front a long time ago. Start with a simple solution with incoming and outgoing finances to keep track of your debts and the revenue. You can use Google Sheets for this purpose or try one of the many free accounting software available on the Internet. This would keep your account organized.
The easier it is for you to understand your accounting at the end of the month the faster it would be to manage such accounts. Keeping a simple accounting system is not only time effective but also if you need a substitute to fill in on your accounting tasks owing to an emergency.
Separate accounts for business and personal Expenses
New business owners often make this mistake. Paying through your business card to avoid walking down the ATM machine is not at all a good idea. It may be convenient for the time being but in the longer run it would corrupt your system and can create small discrepancies that may arise in audit or create taxation issues for you. Always keep your business account separate from your personal account and don’t mix up the two when making payments.
Persistence and Clarity
Don’t wait for the month’s end to ink in your accounting details. The sooner the better is the rule but if you cannot take out time to work on them on a daily basis, a weekly routine would suffice in the start. In order to ensure an effective system, you need to be working diligently. Accounting error can sometimes collapse huge industries let alone a small business. Make sure you ink in your accounts in a proper routine and count them down to the last penny instead of rounding off amounts to keep your accounts crystal clear. You don’t your small errors causing you hours of work just because you decided to round off amounts.