If you run a small business, you are most likely already a star in your own right. You probably manage a very efficient and lean team. The rules of the game are stricter for you because you strive for perfection in order to avoid getting stuck with the mom-and-pop-shop tag. Because of possibly tight budgets and comparatively lower cash flow, you are not in a position to pay consultants to dig around your business and give you insights on better profitability. There are probably days where you find yourself spending undue amounts of time on approving expenses and reimbursements. You and your people probably spend a lot of time sorting data and paperwork into folders on your desktop computers. Perhaps you also find yourself worrying about data security even though you might not have spare capital to devote to additional security measures for your on-premise data storage.
Despite all those struggles, you’ve soldiered along, keeping your head above water. But small business accounting software could instead be the proverbial wind to your sails, pushing your business to greater profitability.
Here’s how:
Trim teams could use a lighter admin burden
When you have teams that are just about big enough to cover the core workload, the last thing you need is for them to be drowning in tasks that can be easily done by a machine, at a cheaper rate. Your human resources are costly – don’t utilize a huge chunk of it on data entry unless that is your core business.
Small business accounting software comes with receipt scanning tech that automatically extracts vital details from bills, invoices, receipts, bank statements, and online sources.
Even your accountant will have time for more intellectual tasks because data flows directly from your business bank account to your books.
Set documentation SOPs in place
Another time-consuming task that keeps your employees away from their core duties is sorting and categorizing data. With small business accounting software solutions like Dext, up to 1400 suppliers can be sorted by tax, region, or any other criteria relevant to your business. You set up rules and the system adheres or else the system is even smart enough to start categorizing based on prior data received. It begins by grouping documents for you if you haven’t done so actively yourself.
Need for professionalism in invoicing
Typically small business professional issues include incorrect invoices, missing out on sending an invoice, invoices that lack crisp formats, and a lack of standardization when it comes to invoicing. You’ll also notice that large businesses never have to call to check if you made a payment. They seem to always know.
All of these small business hiccups can be eliminated with small business accounting software. Invoices are generated automatically, prompts are given on the dates that you simply need to hit the send button for your invoices to reach clients, you are alerted when clients open invoices, when they pay them and when invoices become overdue.
Expense approval process usually requires streamlining
As a small business, it is more true than ever that you should keep tabs on expenses, reimbursements, and expenditure approvals. But you also need to prioritize your tasks as a business owner. Over time you’re sure to develop trust in people who take second place in your chain of command. Small business accounting software lets you add extra sets of eyes or to delegate expense approval by adding expense approvers.
The expenses uploaded by your team can be approved quickly, in a couple of clicks by you or your approvers.
The business owner should always have live access to updated books
It is absolutely unacceptable for you to be making decisions based on financial data from the prior week or the prior month. Look at your current bottom line before bringing onboard new suppliers or agreeing to a certain rate with existing or new clients.
This can be achieved with no additional burden to your team when you use small business accounting software. A smartphone-based partner app gives you on-the-go access to data that is already live because it flows automatically from your business bank account to your books.
Easier handle on upcoming taxes and their impact on your business
Small business accounting software prepares you for upcoming changes in taxation in the same way that bigger businesses get prepared. Not only do you receive a heads-up about the upcoming taxes but also insights into how these might impact your profitability. Adjust targets and make the changes required with these useful tax and profitability insights.
Small business owners could use readymade business insights amidst busy schedules
In larger organizations, there are management or mid-level team members to set targets and pore over data to come up with ideas on how to drive better profitability. Big businesses can afford full-fledged accounting departments, audits, and revenue management consultants. Don’t be left behind. At 40 pounds per month, you too can get spontaneous, automated business insights from your accounting software. After all with all the data running through it (as described in the preceding paras), it already has all the fodder it needs.
