6 hidden benefits of accounts software
Most business owners already recognise the fact that accounts software offers significant benefits over traditional paper-based methods or simple spreadsheets. But accounts software offers many more benefits than just providing a tool by which to track income and expenditure. Here are 6 hidden benefits that your business may realise if you choose the right online accounting package.
1. Improved quote accuracy
The data stored in your accounts system is a veritable goldmine – particularly if your business provides services. Using data from previous projects you will be able to view detailed expenditure information, helping you to understand how much to budget for each stage of the project. This will then allow you to accurately calculate your costs for delivering the project, define a healthy project margin and deliver a pinpoint-accurate quote to your client.
2. Reduced manual labour
Reconciling accounts is slow, laborious and therefore costly – the time you spend on matching transactions is time that could be spent on activities which earn money for your business. A good accounts package like Xero can help reduce this manual labour because they can hook directly into your online bank account and reconcile transactions automatically. So you can get on with earning more money for the business.
3. Simplified invoicing
Moving to electronic invoicing, sending electronic copies of invoices by email, offers significant benefits. Not only does your business save on printing and postage costs, but the invoice is delivered to your customer almost immediately. This means that you no longer have to wait 1 to 3 days for invoices to be delivered by post, theoretically reducing payment timescales by the same amount.
4. Anyplace, anytime accounting
Choosing an accounts system that provides mobile access allows you to complete financial tasks whenever and wherever you have the opportunity. In this way you can stay on top of business finances so that nothing is missed and all of your fiscal responsibilities will be discharged on time, helping to prevent budget overspend.
5. Instant overview of financials
Although a spreadsheet can display various tables and charts, only a full accounts system offers a comprehensive dashboard system, allowing you to assess financial performance at a glance. These configurable dashboards provide a quick and simple method to help you identify account debtors, assess profits or project cashflow over the coming weeks and months. By making this information available at a glance, you can quickly and easily make strategic decisions safe in the knowledge that they are well-informed.
6. Simplified tax returns
With electronic submission tools, modern accounting software allows you to submit your annual tax return in just a few clicks. The easier the process is to complete, the less time you need to spend preparing (or worrying!) about it. Once again, the time you save can then be spent on revenue-generating activities, instead of administration for HMRC.
