Accounting software has been in use for around three decades and it has changed the way businesses track their finances. Not only that, software programs are also available for almost every sector, including medical billing, construction, consultants, and home-based businesses. Users don’t have to be accountants to use a software package, as these are very user-friendly.
ScaleFactor, Inc. recognizes the importance and benefits of a reliable business accounting program. Some of the basic features offered by every accounting software package include:
- Accounts receivable and payable
- Reconciling accounts and bank statements
- General ledger
- Profit and loss accounts
- Reports and analysis tools
- Tracking expenses
Depending on the sector, additional built-in features allow small business owners to stay on track. Cloud computing makes it easy for businesses to update their software and access information from anywhere.
Benefits of Using Online Accounting Software
The biggest advantage is that software companies or vendors offer subscription-based services in the cloud based on the business’s specific needs. Small business owners can benefit immensely by investing as little as $10/month. The major benefits of doing so are:
- Instant tracking: Every software package makes it easy to enter data and stay current on information, such as available funds, what money is to be received, and bills that are due. Staying current with the daily transactions helps small business owners figure out how to expand their business.
- Easy access: Cloud computing allows business owners to access their accounts using any operating system (OS), such as Android or iOS. Invoices can be sent from a phone; the expenses and billable hours can be tracked. At the end of the year, a professional accountant can look over the books and certify them for tax purposes.
- Centralized database: Accounting software helps businesses track inventory, invoices, receivables, and payables while managing multiple customer accounts.
- Filing taxes: Accounting software apps are valuable to small business owners, as built-in features help them calculate income tax. Most accounting programs have modules that help businesses file sales and other taxes every month.
Online accounting programs provide business owners with a clear overview of their finances. They also allow for easy collaboration and low upfront costs. Software updates are done instantly, making cloud-based accounting packages the best choice for many entrepreneurs.