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Accounting Software – The Benefits for Small Businesses

If you’re running a small to medium enterprise, chances are that you started really small and have been focusing on growing your business surely but slowly. When it comes to keeping on top of your finances, it’s often difficult to decide which method would be best. After all, you probably already have Excel installed on your computers and it’s a free solution for storing and organising data, especially financial figures. However, you may find that switching to an online accounting solution will benefit your business and today we’re going to take a look at some of the reasons why you should consider this.

1. DATA SECURITY – you’ll be the first to admit that you can’t afford to take risks with the security of your business finances. Using spreadsheets to store the data means saving them locally to your PC or laptop – however, if your machine breaks you may not be able to retrieve the information. When sending spreadsheets via email (to your accountant, perhaps) they’re at risk of being exposed to virus on a third party computer. Online accounting software has an added layer of protection built into it with bank-level security and is securely backed up several times an hour, meaning that the data is protected at all times. A cloud-based accounting solution is an option that will enable you to access your accounts securely at any time, from any device, adding an extra level of flexibility for you.

2. RESTRICTIONS – although spreadsheets enable you to record incoming and outgoing sums, carry out basic mathematical functions and generate graphs and reports – you need to know how to use them correctly in order to do so. They’re great for the more simple tasks but if you’re doing the bookkeeping for a small business, an online accounting solution will save you time, money and headaches because it will do all of the administrative work for you. Some software solutions offer added functionality that will send (and chase up) invoices, record expenses, track time, generate reports, integrate your bank feeds, submit tax returns and even manage the payroll. All of this will free up more of your time which would be better spent managing (or even growing) your business.

3. AXES TAXES – tax season is a pretty stressful time for all of us, especially so for small business owners. You may find that you procrastinate over the job, putting it off until the last possible minute which will make the task feel overwhelming! If you do work with an accountant and use spreadsheets, chances are that you’re emailing them back and for to each other which is an added security risk (see above). Why not harness the power of online accounting software which can show you how much tax you own and when it’s due. If you choose the right type of software you can file Self-Assessment and VAT directly to HMRC via the software, making this a much more straightforward process.