Accessing the Benefits of Small Business Bookkeeping Software

It is a fact that small businesses do not always run an organized financial department or even have the capability to do so. The cost of a small business hiring a financial expert to do all the record keeping and calculations in respect to profit and losses and tracking financial transactions could be quite high.

As it is so costly to hire professionals for the smooth financial operation of your business, it is a good idea to consider doing the bookwork yourself using modern bookkeeping software. Whichever option you choose, it is vital that you should not ignore your business’s accounting.

A bookkeeping software program is basically ‘application software’ that records and processes all the accounting transactions for a business. This software is very useful especially for the micro businesses, and it is quite cost effective, as it doesn’t require a financial expert to use it. Once you have downloaded it then you will easily manage your business’s accounting transactions without the need of an accountant.

The following are just but some of the benefits of bookkeeping software:

Many Bookkeeping Software Programs Are User Friendly

The best bookkeeping software programs are usually characterized by friendly and attractive interfaces that are very easy to use. Once a small scale entrepreneur has set everything up, then they may just update their accounts with much ease and fewer entries. It is also very easy to automatically upload and allocate the information gathered from the accounting documents such as invoices to the correct categories using these software programs.

Accounting Software Reduces Embezzlement

The moment you start using bookkeeping software it automatically becomes much harder for fraudulent financial experts to embezzle your business’s funds. This software saves every transaction that is done through the system. The payroll transactions issued to your employees can be easily recorded into the system along with records of their leave entitlements. This is very important as it can enable you to catch any schemes by employees to pay themselves more than others or take more leave than they are entitled to.

Using Software for Bookkeeping Improves Business Efficiency

Using old fashioned bookkeeping methods could be quite boring at times. As a result, it can be easy for bookkeepers to get distracted causing them to make errors. However bookkeeping software solves many of these problems and also cuts down all the paper work to a greater percentage. They also enable you to be more productive at work as they can be quite interesting and attractive to use.

Audit Work is Much Easier

Businesses that use bookkeeping software have lesser audit tasks to be undertaken. These software programs enable the audit procedures to be more organized and less tiresome. An auditor doesn’t have to ask the business owner for all the financial documents as they are already recorded in the system with an audit trail to follow.

Here are some posts on small business accounting software choices:

Accounting Software for Small Business Part 1

Accounting Software for Small Business Part 2

 

Start A Business – Reasons Why You Should Consider It

It seems that job security for many people is a thing of the past. Therefore, many people turn to starting their own business. There are actually lots of good reasons for doing this. Here are a few reasons to start a business.

  1. YOU Control Your Destiny

When you start your own business you control your own destiny. You do not have to answer to anyone but yourself. Now this might be a problem if you are not disciplined and self-reliant. But if you are the type of person who is committed and self driven, then starting your own business is worth considering. No longer will you be told what to do by others, and be answerable to others for how you spend your time. You are in control.

  1. YOU Can Follow Your Passions

There is a book called ‘Who Moved My Cheese?’ by Spenser Johnson. The message is that you have choices. So if you don’t like where you are now, make a change. Unfortunately for them, most people don’t do this. It follows that many people are stuck in jobs they hate. When you start your own business, you can choose what niche your business is in. So you have the opportunity to do something you are passionate about.

  1. YOU Make The Rules

It is your business, so you make the rules. As you business grows and you need to employ people, you need to remember that you make the rules and your employees need to follow them. That is within reason of course as the government makes plenty of rules that you also need to abide by. But you set the targets, the deadlines and the hours of work, including your own. So you can have the option of having more flexibility in your lifestyle.

  1. YOU Can Make More Money

It can be very profitable when you run you own business. But you must be disciplined to keep excellent records and manage the business well. Many small business owners do not understand how the money trail works so it is vital that you develop an understanding to be able to manage the finances.

When you start your own business you have lots of opportunity as we have discussed. I need to caution you that it is not all beer and skittles. Running your own business can be very demanding when you have to deal with employees, customers, suppliers and financiers. You need to find a network where you can obtain training and information when you need it, a mentor who can assist you, and/or a group of likeminded people.

Here is a 16 minute movie based on the book ‘Who Moved My Cheese?’

 

Accounting Software for Small Business – part 2

accounting software for small businessIn our last post we looked at some of the accounting software options for small business. In this post we are going to look at several packages in more detail:

Xero

Xero is purely a ‘cloud’ based accounting program that means you must be connected to the internet to use it. Xero says that a benefit is that you can do your accounting from anywhere although a cynic might suggest that the best benefits of cloud based software Xero is for the supplier who has a fixed continuity income in the form of an ongoing subscription.

Xero is marketed very well and is flavour of the month. They also offer accountants unique benefits such as extra reports that are not available to the business owner and thus giving accountants the opportunity to provide additional ‘value’ (at an extra cost) to their clients. Consequently, it is a popular recommendation from accountants as well.

Intuit Quickbooks

Intuit Quickbooks is a popular program for small businesses accounts. It has lots of configeration options to match the scale of the business.

Quickbooks has four editions being basic, pro, online and premier. The professional version was launched in 2013 with a number of new features.

Sage 50 Accounting

‘Sage 50 Accounting’ was renamed from ‘Simply Accounting’ and has long been a popular program in Canada. It is available in both English and French, calculates HST or GST with QST or PST and does efiling of tax returns and other governement forms.

The professional version is multi-currency and has additional features over the basic version that make it more popular.

Sage Business Vision Accounting

Sage Business Vision Accounting software has five alternative versions and its modular design means it can be customized for the needs of the business.

Retail, wholesale and manufacturing businesses can make use of this software.

It is more expensive than other alternatives but has additional features not otherwise available.

Simplazz 1-2-3

Simplazz 1-2-3 aims at being the simplest bookkeeping solution on the planet for small business owners.

It is fairly rudimentary as it keeps track of disbursements and receipts and ensures that the records are matched to the bank accounts.

It is popular with many small business owners who don’t need more complicated systems.

If the small business needs computerized invoicing and basic inventory management, the Simplazz 1-2-3 Gold software provides for this.

It’s big advantage is that the user does not need to be trained as an accountant to be successful in keeping good records.

Account Edge Accounting

Account Edge Accounting software is quite flexible and helps to give business owners control over inventory through the inventory command center.

The software has over two hundred financial reports that can be customized for the business owner.

Connected Core Accounting

Connected Core Accounting Software has gained popularity as it functions across both PC and Mac. Files can be hosted on either platform.

The software is aimed at small businesses that only need a rudimentary bookkeeping program and not businesses that require more management features.

So these are some of the small business accounting software options available today. For more information on the benefits of small business bookkeeping software, click here.

Accounting Software for Small Business – part 1

small business accounting softwareKeeping track of resources for a small business owner is important because it translates into money.

In earlier times, businesses required a a qualified bookkeeper to keep the company accounting records. But in more recent times, the introduction of accounting software has made the keeping of accounts a much more efficient process.

In addition, mistakes or other inefficiencies are reduced with bookkeeping software.

At the end of every reporting period, it is these bookkeeping records that report the business’s profits or losses, assets, liabilities and equity. The entire process can be worthless if not done properly.

Over the past 15 years or so, more and more accounting software solutions have entered the market for small business owners .

They are generally quite cost effective as well as being quite easy to use for someone who has been trained in bookkeeping.

They also cover a number of functions such as tracking cash flow, inventory, invoices, payroll and even customer relations management.

Here are a number of the popular packages:

  1. Intuit Quickbooks

Quickbooks has four editions from basic to premier. They have a huge market share and because accountants are risk averse and tend to go with the most popular product, Quickbooks will continue to be very popular.

  1. Xero

Xero is the new kid on the block and is spending millions on marketing even though the company is yet to make a profit. Having said that, it’s marketing is generating a lot of hype that is gaining it market share quickly.

  1. Sage 50 Accounting

Sage is another major international company that has been around for a long time. It has several versions that vary in their complexity. Sage is very popular in the UK.

  1. Simplazz 1-2-3

Simplazz 1-2-3 is a very easy program at the other end of the spectrum as it is focused on micro small businesses who know nothing about accounting. This is a great program for micro-small business owners and created by Cashflow Manager in Australia.

In our next blog article we will look at accounting software programs in more detail along with some others. Here are some reasons why small business bookkeeping software is important.

Managing a Successful Small Business

business management rolesManaging a small business is both challenging and exciting. At the initial stage the entrepreneur handles everything. He or she is the accountant, legal officer, marketer, logistics manager, secretary, and the manager. That is the challenge.

On the other hand, the entrepreneur has the freedom to make independent decisions that he believes will grow his business. That is the excitement. When not running on excitement and challenge, good business sense must take over. Here are four important components of managing a small business:

A Mentor:

Mentorship opens the entrepreneurs eyes to common mistakes that can kill the business. It is preferable to get a mentor in the same industry. A good mentor guides the entrepreneur through all the other components of managing a small business. Therefore a good mentor is not far more experienced than the entrepreneur.

An Accountant:

Managing a small business accounts is stressful. Sometimes the numbers do not add up. Unfortunately, the business cannot afford an in-house Accountant at this point. Get a trusted Accounting firm that is willing to handle the taxation, invoicing, payments and all other accounting functions at a pocket friendly rate.

A Lawyer:

Small businesses easily fall into the legal pitfall knowingly or unknowingly. What may be considered a “small” legal matter can ground a business completely. While there are various legal exposures to a business, employees, industry regulations and taxation pose the greatest legal threats. Get a smart affordable lawyer to seal these loopholes.

A Communication Expert:

Communicating with customers, suppliers, creditors and business partners is an integral part of managing a small business. Well thought out messages can convert potential customers into purchasing customers, which a small business needs for survival. Additionally, good communication skills are necessary when negotiating with suppliers, existing and potential business partners, and creditors. Get a communication expert to develop the messages that will grow your business.

Managing a small business is both an art and a science. Every move must be well calculated to achieve the overall goal – make a profit. Any activity that an entrepreneur undertakes should be geared towards growth and sustainability of the business. Fortunately, there are many resources online and offline that can guide the small business owner.

The entrepreneur should be ready to learn, open to criticism and able to overcome failure without closing shop. Creativity to solve problems as they emerge, enthusiasm to serve customers, courage to venture into unknown territory, and humor to lighten up even the longest day go a long way in making management of a small business easy.