Accounting software tips for businesses

There are many accounting software options available for businesses and sometimes it’s hard to know which option to choose. Most software options are designed with business owners in mind, but there are some more advanced features that business owners may find slightly intimidating. This article shares some accounting software tips for growing businesses to ensure you make the most out of the software which will benefit your business.

Download the app

Most accounting solutions have an accompanying mobile app, which is definitely worth installing on to your smartphone. This means that you can access important information on the go and therefore it is majorly time-saving and extremely convenient.

Having access to a mobile app will mean that business owners are never far away from their finances. This means that financial information is right at their fingertips regardless of where they are, for example when travelling or when on holiday.

Staff access

Whilst there will be sensitive financial information on the software such as employee salaries that you will naturally want to restrict access to, there are other aspects of the software you may want to share with different people and departments. Most cloud-based accounting software solutions allow you to offer different levels of access to different people in or outside of your organisation.

Allowing different departments and individuals access to financial information could be very beneficial. For example, marketing departments will benefit from accessing sales figures to inform their future marketing strategy.

Effectively forecast

Being able to successfully forecast is vital, especially when your business is growing. Many accounting software options include forecasting tools that allow you to look at different scenarios and therefore plan with more accuracy. For example, forecasting tools allow you to see what your performance would be if you no longer had one of your major clients. Some businesses rely heavily on a small handful of clients, so knowing how you could cope financially with the loss of a major client is invaluable.

Forecasting features also make it easier for growing businesses to identify when they are in the best position financially to invest in equipment or additional members of staff. Although the forecasting may not be 100% accurate as the future remains unknown, using this software can help mitigate risk and provide reliable information.

Budgeting and cash flow

Accounting software often makes it simple to assign budgets and keep on top of spending. Being able to easily allocate funds to different areas of the business and different projects can help keep everything organised and ensure there are no nasty surprises.

There are often dashboards on the accounting software that also allows you to quickly access your cash flow. Not only is this great for budgeting and future planning, but it also helps ensure you can easily access a real-time view of your finances and ensure you are forewarned of any issues before they escalate.

Choose Add-ons

One of the main benefits of cloud accounting is the degree of customisation. These tools give you the ability to choose add-ons and additional integrations whenever needed. Spend time exploring these options to see which ones you think will suit your business.

For example, there are eCommerce add-ons available for online businesses that can be used to easily integrate and transfer sales information without the need for timely manual entry. Other examples include job costing and stock management.

Analyse your sales

Having all your financial information up to date and at your fingertips provides you with access to key information when you need it. From this, you will be able to monitor sales performance and spot sales trends with ease. Doing this regularly will allow you to amend and adapt your sales strategy regularly as and when necessary.

You will be able to quickly identify best sellers when your peak and quiet times are, and therefore when you could adapt your sales strategy, for example to include discount promotions, etc

Change how you work with your accountant

The recent increase in accounting software has sometimes created a shift in the relationship between many businesses and their accountants. Whereas before your accountant may have performed traditional tasks such as bookkeeping, payroll, and VAT return, this may not always be the case anymore. Whilst you still may need help with these tasks, these tools, and their automation features means that you may work with them differently. With this information at their fingertips, your accountant should be able to focus on other areas such as management information and projections, and proactive advice that can help you grow your business.

Top tips for choosing your accounting software

As previously mentioned, there are many different accounting software options for businesses to choose from with Quickbooks and Xero being two of the most popular choices. Before committing to one, here are a few top tips to help with choosing the best one for your business:

• Check general functionality- Ensure the option you choose can undertake the tasks you think you will be doing the most. If it cannot do the tasks you want, you make need to shop around to find the best fit
• Industry-specific- Some industries have specific requirements. If this is the case, ensure the accounting software you choose can accommodate this
• Cloud or desktop- Whilst we highly recommend cloud based accounting due to ease of use and the easy remote access, it does rely on internet access whereas desktop doesn’t
• Scalability- If your business is growing, you must choose software that is easily scalable so that its functionality can grow alongside the business.
• Ease of Use- Although your accountant will be able to help you with the accounting software, it is important that you understand how it works, and that the software helps, rather than hinders. Always try a demo of your chosen software before you commit.
• Reporting- Understand what reporting is possible from your chosen software. Choosing software that will provide you with a range of reports will be time-saving and extremely useful when trying to grow your business.
• Add Ons – understand what add ons are compatible with your chosen software

Hopefully this article gives you additional information if you are considering a change in accounting software or using for the first time.
We have software experts at Wright Vigar who will be happy to assist you is you need any help