20 Advantages of Accounting Software for Small Businesses

January 4, 2023
Laura Smith

What is business accounting software?

Running a business of any size takes a lot of work - when running a small business that work can often fall to a surprisingly small amount of people. Add onto that managing finances, accounts, budget and payroll and you have the potential for error.

How does accounting software help small businesses?

It saves them time and streamlines otherwise complicated or expensive processes, freeing up time for more important tasks.

Investing a small amount into accounting software allows you an accurate snapshot of your financial health with deeper insight into profits and losses.

You can enjoy easy digital access to your expenses and tax summaries. Choosing accounting software with good reporting functionality is a great idea to keep an eye on your cash flow and really get to know your company's finances.

Does your small business need accounting software?

You can opt to manage your finances yourself using spreadsheets or go for professional accountancy services such as an accountant or bookkeeper. Is accounting software necessary for your small business? The simple answer is yes. You can choose to do your accounting yourself but this will take up more of your valuable time and may result in inevitable human error.  

As your business grows this will become too large for you to handle, and you may want to shift your focus, handing the financial side of things to someone else.  This is where accounting software really comes into its own - you free up your time and don't have to foot the expensive costs of full accountancy services.

Businesses of all sizes (and varying budgets) can benefit from accounting software. Many have various tiers of enterprise pricing and monthly and annual plans. Check out the top benefits of accounting software for your business in 2023.

Businesses of all sizes (and varying budgets) can benefit from accounting software.

Top 20 Advantages of Accounting Software for Small Businesses

#1 Automates processes such as invoice creation

#2 Valuable and fast report creation

#3 Speeds up tax returns

#4 Keeps your financial records safe and organised

#5 Helps you save time and money

#6 Adhere to your local tax regulations and make working with taxes easier

#7 Makes it easy to share financial information when you need to

#8 A great compromise between trying to do your own accounting and hiring an accountant

#9 Keeps you up to date with your data

#10 If you opt for Cloud-based accounting software you can access your business accounts from anywhere

#11 Help to improve the efficiency of staff

#12 Send invoices whenever you need to and from wherever you are!

#13 Client, expense, or invoice information is available when you need it

#14 Less duplication with one set of data serving as a ‘single source of truth’

#15 Fewer errors as the software will help you enter information in the right format at the right time

#16 The importance of accountancy software can sometimes be the difference between a startup failing and succeeding

#17 Minimises paperwork and prevents data loss due to missing or damaged documents

#18 Evidence in legal matters if needed

#19 Automatically compiles information on other key aspects of your business like sales, purchases, taxes, inventory, and projects

#20 Draw conclusions from the report data to help you to drive your business forward

Reliable accounting software is likely to benefit many businesses. Cloud accounting software solutions are easily scalable and are designed to fit your growing needs. Want to learn more about what kind of accounting software would suit your business and needs? Check out our impartial reviews.

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