Benefits of Accounting Software for Small Business & Freelancers
Finding software that can help save time and simplify complicated tasks is always a win, no matter the business area or whether you’re a freelancer or small business owner.
So when it comes to complex accounting tasks or making sure you have your books accounts in order, the invention of easy-to-use online accounting software like Freshbooks and Wave has many advantages.
The benefits of accounting software can save you time, simplify tasks, reduce errors, and keep your invoices and expenses organized so that when it comes to tax time, you have what you need to hand.
In this article, you’ll discover how accounting software can help your business, no matter how small, and I’ll provide you with a few of the best accounting software for small business on the market today.
Save time to work on other aspects of your business
In the busy world of running your own business, we are always looking for ways in which we can save time. One of those ways to look after your business finances is through using accounting software.
Using automated tasks, invoicing, expense tracking, and payroll systems takes less time to keep track of everything within your finances.
You’ll be able to quickly lookup how your finances are shaping up thanks to reporting features, and with all the data already in your account, be able to calculate your end-of-year tax at the click of a button.
No more searching through spreadsheets or manually entering your income, as many of the accounting tools for small businesses can integrate with your bank accounts, automatically pulling in your bank records.
Granted, getting used to a new system and new process can take up more of your time in the short term, but in the long run, you’ll be able to save more time to help work on other aspects of your business like producing an effective email marketing campaign.
Accounting software helps keep your business finances organized
One thing I’m guilty of is not being organized. Scraps of paper everywhere lists randomly here and there, and random screws ready and waiting to be used.
Being organized when it comes to finances goes with our first point. It helps save you time and lets you quickly and easily manage your finances.
Many of the popular online accounting software let you:
- Manage quotes and estimates
- Create invoices
- Keep track of expenses and receipts
- Upload you mileage
These features help you keep your finances organized as long as you use the system as you should and remember to upload your receipts, of course. They aren’t magical systems.
Related: Keep other areas of your business in order with the best project management software.
Automate finance tasks with accounting software
Automation, whether it’s in marketing, content creation, or your finances, is another time-saver and way in which you can reduce the number of repetitive tasks you need to do on a daily, weekly, or monthly basis.
Accounting tools can help automate your tasks like:
- Creating invoices from accepted quotes
- Linking your bank account to your accounting software to save time manually entering each payment
- Create financial reports at the click of a button
Automating these things can help save tens of hours over the year, which is best spent promoting and marketing a business.
Related: Automation in your business doesn’t have to be confined to accounting, find the best marketing automation software to help you save time in other areas of your business.
Reduce errors in your accounting records
Working on spreadsheets and entering all of your financial data by hand isn’t only time-consuming, it can lead to you entering the wrong numbers in the wrong place.
Another area I’ve been guilty of in the past, and thankfully my accountant found the errors.
However, if you use accounting tools to the best of their ability, they’ll be able to help reduce the amount of errors leading to increased accuracy of your bookkeeping.
This means that the software will do your tax calculations correctly, and you’ll be able to rely on any reports you create.
Financial reporting – see your business finances at a glance
If you’re manually keeping track of all your income and expenses, it’s often difficult to see how much money you’ve got coming in and how much you’ve got going out.
Keeping an eye on cash flow can be a problem for many freelancers and small businesses. However, that doesn’t need to be the case.
Many paid and free accounting software have built-in reporting features that can give you an overview of how your company’s finances are performing in real-time.
With many reporting option available you’ll be able to create:
- Profit and loss statements
- Invoice reports
- VAT Returns
- Expense reports
- Tax reports
And depending on the software, many more. These can be used for income projections and getting loans for investment. And all without you having to create them yourself manually.
Access your accounts from anywhere
Being an online system means that you’ll be able to access your finances wherever you have an internet connection. Simply login via your browser or mobile app, and you’ll get access to your business accounts within seconds.
You’ll be able to create invoices, add your expenses and create reports and do all that your plan lets you.
With the addition of a mobile accounting app, some let you keep track of your mileage as you drive and give you access to your finances on the go.
Cost-effective yet powerful accounting solution
Depending on the size of your company and what you need from your accounting software will determine how much you pay every month to use it.
One benefit is that the cost of this type of software is relatively low compared to other online business tools like SEO software, for example.
You can expect to pay between £$€3 – £$€10 a month, which given how much time you’ll save on managing your finances and doing your end of year tax returns, is money well spent.
Wave accounting provides free accounting software with no setup fees, hidden charges, or monthly fees if you’re on a budget.
What are the benefits of accounting software for you?
There are many benefits to using accounting tools in your business, whether you’re a solo entrepreneur or a small business with tens of employees.
They help you keep your finances organized. As you might have gathered reading this article, the main benefit is that you’ll save time throughout the year by automating tasks and keeping track of everything you need, whether via your desktop or mobile phone app.
With the low costs and many advantages, if you’re looking to save yourself some time and get your finances in order, these cloud-based accounting solutions will help you do that and more.
My pick of the best accounting software
- Best Tools to Manage a Business Online
- Zoho Books Accounting
- Best Websites to Hire Freelancers for Your Small Business