Running a startup means multi tasking, managing everything with limited resources and facing challenges from other local players. But even with all these challenges, the number of startup has significantly increased during the past 4–5 years.
Now, startups have become one of the most important parts of the economy and they are contributing towards the betterment of its country on a very large scale. But even the number of startups not being able to make it to even their first year is increasing drastically. Although there are several reasons that push down a startup from becoming successful, not being able to manage books properly is one of the main reasons.
This is why it has become paramount for each and every startup to flock towards accounting software instead of carrying out the accounting operation on pen and paper. Gone are those days when using pen and paper was the only way of carrying out accounting operations. Now, accounting software solutions are leading the game in the accounting industry. From promoting automation to making accounting quick, there are many benefits of using accounting software. This is why, in this blog post, we will go through the top 10 benefits of using accounting software for startups.
One of the biggest advantages of using accounting software is the centralization of many processes of financial management. This is because, if you will use accounting software, then you will be able to manage inventory, payroll, invoice, reconciliation, and all other aspects of finance from a single point. This centralization is very much necessary in accounting otherwise even after spending an ample amount of time, you will not get expected results from your efforts.
Simplified tax compliance
Many people think that the only benefit accounting software offers from tax point of view is the clear indication of how much tax you need to pay. But the tax features of accounting software is beyond this primary task. You should know that accounting software also allows you to prepare a report showing like how much tax you have paid regarding a particular thing over a particular period of time. The report generation power of accounting software in terms of taxes is very useful and convenient.
One of the biggest perks of using accounting software is automation and for startups, it becomes paramount. By using accounting software you are able to get things done in minimal possible time. Accounting software wipes out a long list of manual tasks and you are able to get reports, prepare invoices, send bills and receive payments just within a click. This saves a lot of time and allows startups to focus more on their business instead of getting bogged down with books.
Error in the traditional method of accounting is very common as entering everything manually and calculating everything on your own is a process that is prone to multiple errors. But with accounting software, you are able to work with 100% accuracy. Startups can’t afford errors in books and that’s why they need to use accounting software solutions in order to achieve complete accuracy. The chances of error in accounting software are minimal since everything happens automatically.
More analysis tools
If you will be working with good accounting software then you will get the advantage of working with an in-house financial advisor. The customizable reports allow you to analyze different aspects of your startups and you are able to make better decisions. Just within a few clicks, you are able to get details reports that contain vital information regarding the financial status of your startup. Detailed reports like balance sheet summary allow you to know how you are performing in terms of finance.
Proper management of cash flow
With the help of accounting software, startups can easily track and record payables and receivables. This easy availability of payables and receivables allows you to know your current cash flow and even your future cash flow. For example, you can easily enter your bills as well as your customer invoice along with their due dates and easily get insightful reports in order to know whether your receivables are enough to pay your bills or not.
Short learning curve
If you are running a startup then you will never have enough time to learn accounting in a very detailed way. But most of the reputed and admired accounting software solutions are very easy to learn and they make accounting a pie. Even lay users can master the art of using accounting software perfectly just within a couple of days. You should know that this also minimizes reconciliation issues.
Neat and tidy organization
If you are managing your invoices manually then it is going to become a cubrsome process for you but that is not the case with accounting software. Managing invoices with accounting software is very easy and there is no chance of invoices being misplaced or lost. You can easily review, reprint and resend invoices as per your need.
Option of moving to cloud
If you are working on an accounting software then you will also have the option of moving to the cloud. Startups can easily shift their accounting software on the cloud without spending a fortune. So accounting software opens many doors of opportunities for startups.
The modern accounting software solutions allow easy inventory tracking and that minimizes any chance of overstocking and understocking. So, startups can easily manage their inventory with the help of good accounting software.
So, as you see, accounting software offers a plethora of benefits to startups and this is why startups should move away from pen and papers and choose accounting software without any second thought.