Why do Small Businesses Need Accounting Software?
Every business, not just the small ones, needs to keep an eye on what is coming in, and out, of their account.
For big companies, this normally means bringing actual accountants on the payroll. However, small companies often don’t have the means to get real, trained accountants on board permanently. Fortunately, accounting software platforms provide a great alternative, helping you keep track of your cash flow and stay in the black.
How does Accounting Software Work?
Most accounting software platforms function as big, cloud-based databases. You input the information about your sales and purchases, then the software (typically) keeps on top of all this information, and serves it up to you in small, digestible chunks.
Some platforms allow for more advanced tasks, such as FreshBooks’ error detection, while others – such as GoDaddy Online Bookkeeping – opt to keep it simple.
Core Features of Accounting Software
All accounting software platforms will let you input and track any invoices or money coming in, as well as tracking outgoings. This, really, is the core function of an accountant – keeping track of what goes in and what goes out.
However, accounting software platforms will also connect with your business’ merchant account, which can help automate accounting features and recognize when invoices have been paid by your customers.
Beyond that, accounting software platforms often offer lots of extras, such as payroll management. But, at its heart, accounting software is pretty straightforward (at least on the surface).
Accounting Software for Your Business Needs
Not all businesses have the same needs, and as a result, some accounting software will be more suited to some companies than others.
If your business makes a lot of online, direct-to-customer sales, for example, we’d recommend Xero. It’s perfectly integrated with Squarespace and Square Online – helpful if your business uses either of these website platforms.
Similarly, if you just want to get set up as quickly and as easily as possible, we would recommend QuickBooks or Kashoo. QuickBooks has more features than Kashoo, though, so it might be a better fit for more companies.