Before starting up a company, or even immediately after, it is crucial to learn how to manage your accounts. Spreadsheets may not suffice.
As the business grows, you may be spending a lot of time getting the business accounts and finances sorted. Perhaps you are unsure as to whether you should stay with the existing accounting practices or seek an innovative way to manage them.
Listed below are the 5 telltale signs to switch to automated accounting software:
#1: When The Business Is Growing
If you are experiencing exponential growth in your business, know that it is time to switch to automated accounting. While spreadsheets are handy tools when you are merely starting a business, in those initial days of planning and budgeting, it is not sufficient in handling the bulk business load.
However, as operations continue, you may feel that things are easily getting out of your hands.
Even the simplest tasks, like tracking invoices or projecting cash flows could be tedious and time-consuming when you are juggling between paperwork and multiple spreadsheets.
There may be a time when multiple persons are managing your financial accounts – be it employing an accountant, assigning a new team member to manage tasks such as report generation, new data recording, or payment approval.
In these cases, automated accounting software with features such as user restriction configuration and access to multiple devices can be handy. Monite accounting software is an excellent tool to manage your daily operations.
#2: Quick Access to Information
Over time, you may find it difficult to handle a growing volume of data.
If you solely depend on spreadsheets for data management, decision-making could be a crucial process as you may not be able to analyze the business’s financial position.
That is because you would not have immediate access to information. You ought to be familiar with the formulas and commands of spreadsheets to derive better insights from data.
Unless you update spreadsheets, as and when new data is available, reports generated may not paint an accurate snapshot of your finances to deduce your business performance.
As a result, there may be delays in business decisions.
#3: Excess Time Spent on Manual & Repetitive Tasks
Small business owners have to juggle between different tasks as well as conflicting priorities in day-to-day work.
Whereas administrative tasks like inventory tracking, invoicing customers, or processing transactions are essential, these are repetitive tasks that can consume a lot of time.
Use accounting software to automate these tasks easily. This would leave you with more time so that you can grow your business instead of flicking through spreadsheets and documents.
#4: Experiencing Manual Errors
Considering that 9 out of every 10 spreadsheets contain errors, which is 88%, it is not surprising that the number of such errors may occur daily. Thus, it adds to your task.
While this is inevitable that minute mistakes would occur, these may result in an adverse impact on a business, for instance, inaccurate statements or loss of tax credits.
#5: Lacking Technical Skills in Accounting
While business owners are skilled and experienced in their respective fields, handling their bookkeeping and accounting may not be their cup of tea.
To navigate through the pit holes of business, owners must tap into tools and features in accounting software. You can generate comprehensive balance books even without technical skills in accounting, comprehensive financial reports, and choose additional services.
If you are ready to switch over, try Monite accounting software. Get the key features with flexible and scalable software, which is cost-effective.