Why Should Any Sole Trader Use An Accounting Software For Their Business?

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Using an accounting software for your business is the smart way to manage your business’s financials and a smart decision as a business owner no matter how small your business is.

For start, it will save you valuable time and since time is money, you will be saving money as well.

But there are more reasons why.

Accessibility, Availability, And Scalability

Accounting software these days are cloud base software and as such are accessible anytime, anywhere, all you need is an electronic device and an internet connection. You can do your bookkeeping from your office, your car or on the beach while holidaying with the family.

The accounting software providers have rules and regulations to follow to make sure data is secure and protected and are responsible for all software updates, always improving and implementing additional features and capabilities to allow you to better do your bookkeeping.

All accounting software have different level of subscription allowing you to scale up and use more of the software functionalities on offer as your business grows.

Bookkeeping On The Go

All accounting software will have a mobile application, allowing you to do your bookkeeping on the go. We live in a very digitised world and an accounting software is one of the ways to get a better use of technology in your business.

You may be sitting in a car after seeing a potential new client to provide a quote. Gone are the days when you had to wait until you were back at the office to type and send a quote, you will now be able to prepare a professional looking quote using your mobile and email it instantly.

With a mobile app, you will be able to snap receipts and tax invoices as soon as purchase is made. This will allow you to attach the receipt to an expense for more accurate bookkeeping and tax compliance.

You will also be able to review financial reports when in need.

Link The Business’s Bank Account To Your Accounting Software

When using an accounting software (and you should), you can link your business’s bank accounts and credit cards to the software.

Once the bank accounts are connected, you will have automated bank feeds for ease of allocating and reconciling business transactions to the correct expense or income account.

Using accounting software to manage your business’s financials and linking your business’s bank account to it will save you valuable time when doing your bookkeeping, and when processes are easier and faster, we tend not to neglect them.

Collaborations And Team Access

With all leading accounting software for Australian businesses there is an option to invite users to your subscription and to determine what level of access to give each user.

Using an accounting software will allow you to collaborate with your bookkeeper, accountant, and tax agent easily and efficiently. This will save you time and money in the long run, as instead of downloading data or sending receipts to your financial providers, all the data is now in one place and accessible at any given time.

Another great use of an accounting software is to invite your team members / employees to the subscription to either assist you with the business bookkeeping or to use timesheets for easier payroll.

Cost Effective And Tax Deductible

Yes, accounting software subscription is an expense to your business, but always remember that your time is valuable, so every minute you spend on your bookkeeping, you can be working to earn income.

When using an accounting software, the bookkeeping will take considerably less time and the more you will use the software the more confident and efficient you will become, saving more precious time.

And the cherry on top is that the accounting software subscription is part of running a business and therefore is considered as a tax deductible expense.

How To Choose An Accounting Software For Your Business?

The top three accounting software for Australian businesses are: Xero, Myob and QuickBooks, each with their pros and cons.

There are many factors to consider when choosing an accounting software. You will need to decide not only which accounting software to choose, but also what level of subscription you will need.

There are some general elements you should take into account: user friendly, price point, features and capabilities, integrations and customer support.

Your starting point will be your accountant or a bookkeeper if you engage one to help you with the financials of your business. They will be able to advise you on the pros and cons of each software and help you decide on the software that will work best for you.

Secondly, I recommend, especially if you are doing your own bookkeeping, to watch some demo videos online on each of the software you consider. Since each software is different, it is important to choose one that is easier for you to use and understand.

The next step is to decide what level of subscription you will need, as not all subscriptions will be suitable to your business’s bookkeeping needs.

Here are a few questions you can ask yourself to help you determine:

  • Are you registered for GST and need to submit BAS?
  • Do you use multi-currency?
  • Do you use inventory?
  • Do you have payroll?
  • How many invoices do you issue per month?
  • Do you need to record supplier’s bills?

Once these questions are answers, you will narrow down the options to choose from allowing you to make calculated and informative decision.

In summary

I hope this blog post helped you see the benefits of using an accounting software for your business.
There is no better time than the present, so go ahead, and take an accounting software subscription for your business.

If you need help choosing or setting-up an accounting software and training on how to use the software, please don’t hesitate to contact me.

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