Masha Top 10 Tips of Using the Power of accounting software in small businesses

Masha Top 10 Tips of Using the Power of accounting software in small businesses

May,2019 By Smarty Software Knowledge Base

Most people believe that accounting software is only suitable for accountants or people who have extensive knowledge of accounting. But there are a growing number of organizations which now are switching to do their accounting tasks digitally, without being an accountant or the help of an assistant for their everyday tasks. But why do SMEs feel the need for an accounting tool? Which software is easier to use? I am Masha and based on my experience working with small to medium-sized businesses I am going to help you realize the top 10 reasons that businesses of all size, or more specifically SMEs, are required to make use of accounting software.

Author: Masha Ni, Smarty Software

Everyday accounting tasks are more or less time taking and, in some cases, they contain slight errors which could lead to a real toss-up when it comes to taxation. People who are running a small business would rather spend more time to build connections, enhance their business and inject more sales opportunities to being stuck with calculation and math. Let's face it, we all do!

Accounting software which has grown rapidly in the past few years is now powered by the cloud technology, serving as a strong source to be relied on at times you are not in the office and have an internet connection. What this technology brings to the table is that you can have your data safe and sound and access to it wherever you are. Either you want to check your bank account or make prompt payment, there is no need for your physical software, your transactions will be done and recorded via the internet. Which equals no more being stuck with your accountant in the office or having to worry about broken equipment and lost data.  

Typical concerns of small business owners run around the small proportion of time they have and the huge number of tasks they have to run. These issues can be easily resolved with the help of an automatically set, up to date software. Not only that, via accounting software you can have:
  • All your financial data straightaway, wherever you are.
  • Taxation and legal submissions done uniformly.
  • Regular and automatic bank feeds and reconciliation of your accounts.
  • Several users involved, so you can have your advisor’s opinion included in your reports and make smarter business decisions.
If you still are looking for more proofs to run your financials to the cloud, scroll a bit down.
  1. Work smarter, not harder!

Always being snowed under a lot of tasks and being short of time? Work smarter!

Comprehensive accounting software is not necessarily complex and hard to use. In fact, you do not have to be an accountant or spend a great deal of time and money on an accounting course to get to know what is going on in your core financials. A straight forward, simple and fast operating accounting software would literally shrink the workload for you and group all excel files and undocumented transactions in a single place. Diagrams and charts shown on the very front page of good accounting software, interpret all the sales, receipts and expenses in your set financial year. Therefore, you will grasp the idea of how your business is performing, recognise your best-selling service or product and your best customers. The flow charts and graphics indeed give you the plunge to make better business decisions.
  1. Be up-to-date with your cash flow.

Besides understanding where your money is going to and coming from, you need to see the progress of your business in real time. A made to order dashboard makes a range of important tasks more straightforward, from up to date sales reports and outstanding invoices to current cash flow and cumulative expenses, you don’t have to rely on a fragmented array of different software packages, files, and devices to get the job done; everything you need should be in one place.
Follow the status of all your invoices. Discover which customer has paid, who hasn’t and whose invoices are overdue and forecast your cash flow. You won’t get to be successful in sales if you don’t keep up with the time of receiving money. And the good news for overseas traders is that you can work in 120 currencies in Smarty Accounting.
  1. Take care of math!

One thing that I find a real blessing in accounting software is that you do not need to be great at math to take care of your accounts. So, when you have an accounting tool and doing the business, issuing an invoice or changing the currency or getting the budget variance, you are absolutely in no pressure and don’t need to double check anything it increases the accuracy of your reports by default. To be honest with you, I was never great at math! Another advantage is that with accounting software you will never include errors in your reports again.
  1. Store all your financial documents from scratch.

Say goodbye to crumpled receipts and long-lost expenses. Sometimes the expenses are like tickets, water bills and little papers that you think are not much to be included in your expenses. But having all your spent and received money together will inform you of the situation of your business. Upload each of your expenses, so that all the documents can be categorized and referred to, and no cost would slip from your fingers. All your bank receipts should be stored in a single place. So, upload your document to your software and give referrals at times of need. Attach previous transactions or any other must-have documents to your transactions with Smarty Accounting and make the customers know how precise you operate.
  1. Connect your bank account with your accounting software.

Synchronize your bank account to your software and be fully in the know of what happens there. Your small business bank account should be set for online banking to make things easier for you. In this way, you can have regular bank feeds and bank reconciliation at any time range that you want.

With every transaction from every bank account recorded and categorized, you’ll never be left scratching your head about where your money has gone anymore.

Smarty accounting cuts through the complexity by letting you connect with and synchronize your bank accounts in a fluid, natural way. This will help you track all the transactions which take place, which is not only useful for daily references but also makes things easier when it comes to submitting tax returns.
  1. Share your reports with your accountant.

You do not have to spend hours every now and then with an accountant to figure out how your business is doing. When all your transactions are brought to you with just a click, it is easier and faster to ask an advisor or accountant for technical support. They can help you with detailed information while you are in the driver’s seat of your business and in this way, your time and energy are saved 100 times, and you know that you are doing the trickiest part of your business in the right way. Plus, you can cut on the expenses that you had dedicated for a bookkeeper and hire staff.
  1. Tax Time!

Yes, taxing is a pain in the neck! But you need to prepare your documents for regular taxation. If you are VAT registered and following HMRC regulations, you MUST put up with VAT rates at the time of charging your clients. The brilliant choice in accounting software is selecting the one that takes care of taxation automatically and prepares your tax files to be sent to HMRC. In this way, you will avoid tax errors and tax penalties, follow tax easier and increase efficiency.
  1. Mark your territory with your brand.

Customise your templates, stamp your brand when you issue an invoice and make sure everyone knows how uniquely you are operating your business. Every new start-up has a unique identity and in nature represents something new. So why follow a routine as everybody else does? Let’s make sure that your templates for each and every transaction perfectly shows your brand and the speciality in follows. Customise your templates, notes, and logo and send it off to your customers. It would make it harder to be left unread if they truly know the business.
  1. Plan the business ahead.

Your budget is the limit you set for all your expenses of a specific time range. Whether you are planning to expand your business, you should always consider the budget and match your financial reports with it. Your financial records will come at your hand when you want to get the attention of the investors or when you want to get business loans. Keeping up with your budget and detecting budget variances will help you to cut on unnecessary costs and plan the future of your business.
  1. Visualize your business even when you are out and about.

One of the most highlighted features for online accounting software is the benefit of cloud technology. If your software is built in the cloud, it gives you the accessibility to reach your financial data wherever you are; as long as you have an internet connection. therefore, you can immediately take action for unexpected issues from your smartphone, laptop or desktop. you can keep working even when you are out and about. An iOS or Android app can help you with immediate invoices, reminders and controlling bank statements and amaze your customers. Most accounting software is integrated with other facilities to make you totally independent and fulfil the needs to use multiple software at once.
Now that you have 10 more tips to run your small business, you can start using accounting software that has all the above-mentioned capabilities. No matter what is the essence of the business you are running, you can always find the perfect accounting software for your business needs. Smarty Accounting can set the ball rolling for you without even breaking a sweat. Besides, you are given free support as long as you are subscribed to the software. This simple but powerful solution stands among the most user-friendly and most affordable accounting software targeted small to medium size businesses. Give it a try! And remember that a good accounting practice will rescue your business and grant its success.

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