As a business owner, clearly you’ll want to do everything you can to help your business grow. However, in some cases, it can be your reluctance to adapt to new technologies that can actually hold the business back.
In the early days, most business owners use Excel to keep track of their finances, but there comes a time in every business when you need to make a change.
There’s nothing wrong with using Excel, is there?
Firstly, it’s important to note what a fantastic tool Excel is, and when you’re first starting out in business it enables you to perform all the essential tasks you need. But, as your business grows, Excel simply allows too much room for error for it to be the only piece of accounting software you use.
While Excel is an incredibly robust tool in itself, the spreadsheets the vast majority of us create are actually very fragile. We cannot trace where data has come from, there’s no audit trail (so you can overtype crucial numbers without realising it), and there’s no way to test the spreadsheet’s accuracy. What you’re left is an accident that’s waiting to happen.
So what’s the solution?
These days there are a number of cloud accounting software solutions for businesses that are both accurate and easy to use. The solutions available allow business owners to give access to as many users as they choose, while determining their level of access to ensure sensitive information remains safe.
All the information stored on the software is securely stored in the cloud to provide peace of mind. There’s also an audit trail so you can be sure who has done what, and when. Xero and Quickbooks Online are currently the market leaders but there are a number of other options depending on your business size and complexity. You can find a review of the top 10 here.
Five reasons why accounting software is better for your business
1. It’s easy to use
There’s no more struggling with complicated formulas. Cloud accounting software comes with a simple dashboard to give you plenty of confidence from the start.
2. The data is accurate
Real-time financial data can be updated automatically to reduce data entry and the potential for mistakes. All your data is then stored safely in the cloud.
3. Data can be shared instantly
Cloud accounting software allows data to be shared with an accountant or financial advisor with a single click. This can make those headaches come tax time a thing of the past.
4. There’s an audit trail
Details of every input, payment and sale are recorded and a proper audit trail ensures your data cannot be compromised. This also reduces the likelihood of mistakes being made.
5. You can access your data wherever you are
You can perform those small tasks that eat away at your free time and improve your productivity wherever you are. You and your team can access data on the train, in a café or on the move.
How can we help?
Prosper provides a comprehensive approach to accountancy, tax & business growth services for start-ups, SMEs and growing companies across the UK. We are your bookkeeper, accountant and finance director all rolled into one. Check out prosper.accountant to learn more about how we can help your business.