Accounting software has been made available to small businesses in recent times. Although it offers a vast array of benefits, many people haven’t made the switch yet.

In this article, we will try to convince you to start using accounting software as soon as possible. Although the initial setting up and transferring of financial data into the program may be challenging and take time, we can assure you that a lot of time, effort and money will be saved in the long run with a dedicated accounting program.

You Can Focus On Important Tasks

Bookkeeping was traditionally one of those administrative tasks that took up hours upon hours of a business owner’s working day. This was especially the case for the self-employed.

However, with the advent of accounting software, the managing and recording of finances was streamlined with the collation of all financial data in one place. Once you have learned how to take full advantage of the power of accounting software, you will spend considerably less time updating your books.

This will free up time for you to focus on tasks which will help grow the business and generate profits, rather than spending days in the office making endless calculations.

Talking about calculations, this is another area which accounting software has sped up significantly. Gone are the days of punching hundreds or even thousands of numbers into a calculator. Simply feed the software a list of all the transactions, and it will work out totals for you automatically!

Automated Processes

As well as automated totals, most accounting software packages available can put together statements and generate invoices automatically.

With automation, the computer is not going to make any mistakes (unless you feed it incorrect data). This virtually eliminates the possibility of making errors when sending documents to HMRC, which could land you with a hefty penalty.

Easier Tax Returns

Even the simplest of accounting software will collate all transactions in a defined period in one place. Whether you are filing tax returns yourself or outsourcing the job to an accountant, the whole process will be made much simpler when done on dedicated software.

You can be confident in the knowledge that no transaction has slipped under the radar, which is more likely to occur if you have mountains of physical receipts and records to go through.

Hassle-Free Audits

Your business may well be subject to an official inspection, known as an audit, from time to time. One of the most important aspects of a business’ finances that should be kept at a high standard are the books.

By having all your accounting records stored safely in one place in an accounting program, you probably won’t be red-flagged for inconsistencies and errors. Such mistakes can land you with fines, penalties and extra scrutiny from HMRC going forward.

Once you are consistently green-flagged owing to your tidy and error-free financial records, your business will be less likely to be chosen for an independent audit in the future.