A business, be it a large business or a small/local business, every type of business has to complete statutory accounts. How business owners maintain accounts and accounting processes will determine the true success of the business. There are many reasons to focus on accounting:
- Accounting helps businesses to keep a check on their expenditure and income.
- Accounting gives business owners financial clarity.
- Accounting helps in business decision-making.
- Accounting done properly saves the business owners time.
So, there are many advantages of accounting for a business, especially small businesses. Small businesses want to expand and venture into new options. They need proper accounts information for the same.
Why is there a need for a modern accountant using modern accounting software?
The historic pen-paper way of tracking accounts is tiresome and not Making Tax Digital (MTD) compliant. This manual end of year reactive style of accounting increases the probability of errors and stress. Basic online resources like excel sheets also face the same problem. These are just an online version of pen-paper. You have to manually add everything – every set of data and every formula/format and to be compliant install expensive bridging software to submit returns. Excel sheets still have their purpose but the right accounting software is imperative for any modern business. Not only does it make your company MTD compliant, it will provide real-time company financials and reduce the end of year stress.
There are so many benefits of using a smart accounting software:
- It saves a lot of time
- Cloud based software helps to avoid the need for more storage space for files
- Easy to present data to potential members
- A simple way to use data for future prediction
- Securely stores data for situations in need
- Aids in tax calculation and tax understanding
- Organized data management and data analysis reports
- Accuracy in presenting calculations
Accounting software promotes collaboration. It is easier for the team members to access and understand the accounts. Thus, there are many benefits of opting for good accounting software. Software is like a helping hand who works for you. It simplifies everything with precision and clarity.
How to choose accounting software?
Before investing in accounting software, consult your accountant who will look at the type of business you are, the size, transaction levels before giving you a recommendation. Shield Accountancy partner with Xero, FreeAgent, Sage, Quickbooks. Get in touch todayand speak to one of our expert advisors to see what software platform would suit your business best and what accountancy services Shield Accountancy can provide to support your business growth.