Looking for the best small business accounting software? Hold on! Before you proceed any further, you need to look for some of the essential features in the application. There can be multifaceted challenges in your business. Your small business accounting software should have all the vital functions that can streamline the core competencies of your business process. To ensure that your business accounting application is not lacking in these features, we have listed some important functions of the small business accounting software. Let’s start!
Must-Have Functions Of A Small Business Accounting Software
Below is a list of the functions that a small business accounting software must have to streamline the core competencies of your business:
1: Effective Invoice Management
A suitable accounting software prevents users from running after the payments and enables you to create custom-tailored invoices to get easily paid. Getting paid can be more comfortable when you can print them or email them to the customers. A useful software lets you see all the amounts of your outstanding invoices, also known as the account receivables. The easy payment reminders of the application can reduce your time and efforts in getting paid.
2: Tracking Income And Expenses
In business, you should be able to keep track of your income and expenses, as it can help you to calculate your profit and loss. To do so, you need to connect your bank account with the application. Reconciling your account can help you to download all your transactions. Besides, it can also help you to check if there are discrepancies in your account. Furthermore, keeping track of your business accounting just like using a gym sales software when you are in a gym or fitness industry can also help you to know how your business is performing and can make well-informed decisions for the growth of your business.
3: Printing Financial Statement
A useful small business accounting software should be able to print the cash flow of your business. In this way, you can get useful information about your business and how it is performing. Financial statements are also required to apply for a small business loan. A business can have different financial reports, such as profit and loss reports, cash flow statements, and balance sheet reports. You can also use the free Google Sheets Profit and Loss template to monitor your finances efficiently.
4: Robust Payroll Management
Employee payroll management is one of the most critical competencies of your business. Keeping track of the working hours and the payments of your business can be an intimidating task. However, useful small business accounting software can help you to get the job accomplished with the utmost ease. Manual calculations of the checks can lead to mistakes. On the other hand, if your application can calculate and run payroll automatically, keep track of the employee’s hours, you can do your business with peace of mind.
5: Manage Inventory
Inventory management is an essential function of businesses. Keeping track of the items in hand can keep you ahead of the purchase orders, and you can get to know what’s selling and what’s not. Make sure that your small business accounting software can update your inventory quantities automatically when you buy or sell products. Besides, check if you can run reports of best-selling items to maximize your business profits.
6: Simple Tax Management
When running a business, you need to deal with perplexing tax calculations and payments. Before you get your small business accounting software, you need to check if it can run reports for sales tax liabilities and record or edit sales tax payments. Besides, you may need to calculate sales taxes on different parameters such as location, date, customer, or type of product or service. Above all, your application should be able to keep you updated about taxable and non-taxable sales.
7: Manage Your Accounting Data Anywhere
Your small business accounting software shouldn’t restrict you to the limitations of location or device. Check if it can enable you to access your accounting data from any corner of the world and that too on your preferred devices. Better shared access to your accounting data can help them to work more efficiently. Besides, online access to the accounting data from the server can eliminate the need to keep regular data backup and prevent loss of crucial data disruption.
Managing your bank transactions with your small business accounting software can add a cherry on the cake. Viewing bank activities, writing and printing checks are some essential functions of an accounting application. Besides, you should also need to consider the reconciliation and recording deposit functions. When these functions are not appropriately managed, it can cause significant havoc to your business.
9: Online Payments
You can improve your cash flow by offering your customer several payment options. If your small business accounting software gives customers the option to make online payments directly from their emailed invoice, you can grow your business without breaking a sweat.
10: Scan Receipts
Another way to make tax time a breeze is being able to organize your receipts in your accounting software. If users can download the app to their mobile device for free, take a picture of a receipt, and upload it, growing a business can be more comfortable. It can save business owners from lost receipts or manually matching up receipts with downloaded banking transactions. Your small business accounting software should allow you to attach a receipt to the corresponding banking transaction. Furthermore, it should provide you with the freedom to upload unlimited numbers of receipts in the cloud to easily track down numerous expenses.
11: Mileage Tracking
Many individual entrepreneurs use their vehicles for different business requirements. It attracts a generous tax deduction of 57.5 cents per mile. However, to get the deduction, you will need to keep a record of the date, miles, and purpose of your ride. If your mobile application allows you to use GPS, it can track your trips, and you may add a note about the purpose of your movement.
Now that you have read this post until the end, you can think about which functions are essential for your business. When choosing your small business accounting software, you can look for these functions. QuickBooks, Zoho, Xero, Sage, Freshbooks are some of the best accounting software that can help you streamline the core competencies of your business. If you like this post, then our blog section has many more for you. Visit!
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