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You are here: Home / Tech Gadgets and Products / 7 Reasons You Should Use Accounting Software For Your Small Business

7 Reasons You Should Use Accounting Software For Your Small Business


There are many reasons you should be using accounting software for your small business. If you’re just starting up or running a small business you may avoid using an accounting software because you think it’s confusing or unnecessary if you use a professional accountant for your taxes. But, an accounting software can make you streamline your business and increase your bottom line.

Why you Should be Using Accounting Software for your Small Business
Note: This post was sponsored by Xero and may contain affiliate links.
In this post we’ll walk you through the advantages of using accounting software for your small business using examples from a popular bookkeeping solution for small businesses, Xero. Xero is a cloud-based accounting software that PC Mag calls “usable and friendly”. (That’s pretty good for an accounting software which is usually quite complicated and boring!)

1. Access your Business Financial Data from Anywhere

We mentioned above that Xero is a “cloud-based” software. This means that Xero and its information isn’t stored on your computer, it’s stored in the cloud. (If you want more information on the cloud you may be interested in reading the post on what is the cloud.) Without too much technical mumbo jumbo it just means that your information isn’t sitting on a physical computer in your office. Think of it as being stored on the internet so you can access it from your computer in your office, from your tablet when you’re at a client’s office or from your smartphone when you’re on vacation.

By keeping your small business finances with Xero, or a similar cloud-based accounting software, you can access your information from wherever you are. Xero has iPhone, iPad, Apple Watch and Google Play apps for Android devices. This also means that you can reconcile your bank account while sitting on the train during your morning commute. How’s that for being productive!How Small Business Accounting Software can Help Your Business - Take Your Business on the Go with Mobile Apps for iOS and Android

2. Automate your Financial Tasks to Save Time

While we’re on the topic of productivity, let’s talk about how easy it can be to capture your financial information with an accounting software. Sure, you could use Excel spreadsheets to track all of your purchases and expenses but that’s can be a lot of manual data entry. You may think that small business accounting software requires more data entry but it actually can be a lot less data entry than tracking finances in a spreadsheet.

Xero integrates with over 500 apps and services to track your time, manage your inventory, pay invoices and more. Here are just some of the examples of how you can link your financial data to your other software services:

  • Capture payments automatically when you integrate through services like: Square, Paypal and Stripe
  • Track sales through integrations with Square, Shopify and more
  • Manage inventory by linking Xero with Vend, Unleashed, Cin7 and other inventory trackers
  • Link to Gusto, Deputy, ADP or other payroll services
  • Keep important tax documentation with your books by linking Xero with Zapier, Hubdoc and others
  • WorkFlow Max, Deputy and Minute Doc are just a few of the time tracking tools that can communicate with Xero
  • Link CRM information with your financial data by linking Xero with Salesforce, MailChimp, Constant Contact, Google Apps for Work and more

3. Keep your Finger on the Pulse of your Business

Now that we know that small business accounting software doesn’t have to be time consuming to maintain, let’s talk about how it can benefit the bottom line. If you’re like some small business owners I know, you only review your finances once a month, or, even worse, only once per year! By only looking at your financial information once a month you could miss seeing valuable information for weeks. This could cause you to lose opportunities to reverse a downward trend or capitalize on a gain. Xero’s elegant real time dashboards give you a snapshot of how your company is performing right now. Spot downward trends as soon as they start to happen and take action to reverse them. Identify business changes that are having a positive impact and capitalized on them to boost their effect.

4. Bring your Business to the Next Level

Small business accounting software can also help you bring you your small business to the next level. Are you still generating quotes using crude Microsoft Word templates? With an accounting software like Xero you can create and send professional looking quotes to potential customers. One of the hard lessons I’ve learned in my professional life is that perception is reality. Make sure when you present yourself  to a potential customer they perceive you as a professional.

Look Professional with Invoices Printed from a Small Business Accounting Software, Xero

5. Complete and Accurate Records for Tax Preparation

When it gets close to tax time do you find yourself shuffling through a shoebox full of receipts, trying to remember which expenses were business related? One important reason you should be using accounting software for your small business is for accurate tax records. Accurate taxes don’t just benefit the government, they benefit you too. When you’re digging through piles of paperwork to gather tax information for your accountant are you going to remember a purchase you made for your business over a year ago? Probably not. Without recording expenses real time you could miss out of valuable deductions on your taxes.

6. Collaborate with your Accountant

With a small business accounting software like Xero you can share your books with your accountant. With up to date information it’s easier to calculate quarterly tax documents and estimations. Your accountant can now use this information to provide you with more proactive financial advise instead of just preparing documents for you in April.

7. It’s a Business

Perhaps the best reason for using accounting software for your small business is that it is a business.  All big businesses started as small businesses. Give your small business the respect it deserves and treat it as if it’s a legitimate business. Perhaps then, one day, it will become a bigger business. Good luck!

Why you Should be Using an Accounting Software for your Small Business

Why you Should be Using Accounting Software for your Small Business

These are just a few of the reasons you should be using accounting software for your small business. And, as with most improvements, there’s no better time to start than now. If you’re ready to start I’d encourage you to check out Xero. Signup for a free trial and you can see how easy it is to use and explore the different features in more detail using a demo company.

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December 19, 2016

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Comments

  1. Brian says

    January 23, 2017 at 4:21 pm

    Using accounting software to help keep track of your businesses finances is a good way to make sure you don’t have to worry about keeping track of receipts or creating invoices from scratch.

    • amy says

      January 23, 2017 at 6:10 pm

      So true. It’s easy to miss things when you’re not using a software regularly to track things.
      Amy

  2. Australia scheduling software says

    March 8, 2017 at 2:34 am

    With Business software tools, businesses can input data-based goals, such as sales goals or target delivery time, and track progress on a daily basis.
    Australia scheduling software recently posted…Software for better Workforce ManagementMy Profile

    • amy says

      March 14, 2017 at 4:02 pm

      So true, excellent point!
      Amy

  3. Ian Horn says

    March 18, 2017 at 6:51 am

    Accounting software is nothing but a class of computer based programs that enable to manage the business financial transactions. Depending upon the requirement they are categorized, while some programs are designed for little more than simple bookkeeping and some others are designed to manage the entire financial comings and goings of large businesses. So, whatever may be the fact, accounting software is needed as it helps to use to resources in accounting department efficiently. I liked the concept of Xero accounting software as it was helpful in storing the information in internet rather than a physical computer. I genuinely felt that your blog was quite informative and helpful.

    • amy says

      March 25, 2017 at 3:21 pm

      Thank you Ian. Xero is a bit more user friendly I think for small business owners who are often wearing a lot of hats.. I’m a numbers person so I think everything should be logged and tracked (can you say analysis paralysis?) but I think some people don’t realize the value in it. It can really tell you which direction you’re going and where to put your time and energy.

      Thanks for reading! 🙂
      Amy

  4. McKenzie says

    March 23, 2017 at 10:55 am

    I think that having an accounting software that exists in the cloud is awesome. I also love that it makes documents look professional and personal. Thanks for sharing this!
    McKenzie recently posted…Hello world!My Profile

    • amy says

      March 26, 2017 at 10:01 pm

      You’re welcome McKenzie. It is nice having the information at your fingertips at all times. And, I agree, it’s very professional looking.
      Thanks for taking the time to comment!
      Amy

  5. accountant Stones Corner says

    April 12, 2017 at 4:26 am

    There are services that provides money management and improves your business. You should consider it always.
    accountant Stones Corner recently posted…Do you need an accountant or a bookkeeper?My Profile

  6. Australia rostering software says

    May 2, 2017 at 1:44 am

    Proper planning of an integrated business management software system often takes a back seat to short-term revenue acceleration goals.
    Australia rostering software recently posted…ISSA Cleaning & Hygiene Expo Melbourne 2017My Profile

    • amy says

      May 7, 2017 at 9:28 pm

      True…

  7. Stones Corner bookkeeper says

    May 24, 2017 at 3:55 am

    It is not a waste of money to hire professionals in some help. In the long run you will notice it in your company the improvements and benefits.
    Stones Corner bookkeeper recently posted…Working as a tax agentMy Profile

    • amy says

      June 22, 2017 at 8:45 pm

      Good points.

  8. Geo Op says

    May 26, 2017 at 1:03 am

    Hey,
    Before starting any business, planning is the first step of all things like product, employees and space where you want to start a business. After all this nowadays one this is also an important thing to start any business and that one is business management or accounting software which takes care of all accounts and all business and its very helpful to increase your business early and in easy way.

    • amy says

      June 22, 2017 at 8:42 pm

      True.

  9. noor says

    July 6, 2017 at 11:32 am

    Hello, There are services that provides money management and improves your business. You should consider it always.

    • amy says

      November 16, 2017 at 6:56 pm

      Yes, that’s another alternative for sure.

  10. asif says

    July 10, 2017 at 7:25 am

    thanks for sharing

    • amy says

      November 16, 2017 at 6:56 pm

      Thanks for reading!

  11. noor says

    July 12, 2017 at 11:45 am

    Awesome sharing 🙂

    • amy says

      November 16, 2017 at 6:54 pm

      🙂

  12. sana says

    August 10, 2017 at 3:51 am

    Nice post. These tips will be useful for me. I do not have much idea about these accounting and all. Thanks for sharing this informative post.This information will be beneficial for many people.

    • amy says

      November 16, 2017 at 6:51 pm

      Oh good. Thank you for reading.

  13. Oliver Neely says

    September 18, 2017 at 9:15 am

    So many businesses are using accounting software now-days. Although I think there is often an assumption that you can just “pick up” and go. But sometimes there is a bit of learning to be had. I think its sometimes worth getting some training in using software effectively, and in relation to a persons specific business.
    Oliver Neely recently posted…Are Two Sets of eyes on your Business Better Than One? (Let the pro do their work)My Profile

    • amy says

      November 16, 2017 at 6:50 pm

      So true. But I think that’s one of the benefits of Xero, the learning curve appears to be much shorter.

  14. Steav Smith says

    October 22, 2017 at 5:41 am

    I was looking for this kind of article for a long time. I have some query regarding accounting software for small business and I found the answer to the question after reading this article. Thanks for sharing all the information. It was worth reading.

    • amy says

      October 30, 2017 at 8:27 pm

      You’re welcome.
      Amy

  15. Thomas says

    November 14, 2017 at 1:54 pm

    Capture payments automatically when you integrate through services like: Square, Paypal and Stripe.

    thanks for your info. Keep going

    • amy says

      November 14, 2017 at 2:48 pm

      Another good one Thomas…
      Amy

Amy @ German Pearls Hi, I'm Amy, an Engineer and tech-geek who loves helping others with tech problems. With German Pearls I hope to be able to help more people enjoy the benefits of the latest and greatest computers and gadgets. Thanks for stopping by!
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