If you can’t control your money, you can’t control your business, as they say. Now, who doesn’t know this? Yet most small businesses don’t understand the implications of this completely. Accounting plays a key role in business management and should particularly be paid attention to by small business owners. That’s because most businesses rely heavily on accounting firms or staff when it comes to their finances and end up undervaluing accounting as an enabler in business management.
Here’s how accounting helps manage and grow your small business:
Creating budgets for managing operations
That’s a given. But there’s more to a typical business budget than you realize. Take, for example, a small IT business, which is mostly a service-based economy where business gets paid in parts. Some IT firms keep a 50% advance policy before starting a project with an overseas client. A good accounting system helps you keep the actual cash flow separate from future receivable cash.
This helps in creating budgets for expenses for regular heads like salaries, rent, or fees and unexpected heads like inventory loss, wear and tear, or repairs. A business firm can anticipate revenues and expenses through a balanced budget and is never thrown into an emergency where business owners need to arrange funds for certain unexpected expenses.
However, developing a great budget system can be a hassle for firms with no or little knowledge of accounting. Such firms can take advantage of cloud-based accounting software to fully manage and anticipate expenses and revenues.
Systematic accounts would help a business sail through any number of taxation changes or unexpected legal compliances. While you may need the help of an accountant for a good knowledge of the legal norms of businesses in India, great accounting software that comes with default taxation settings can be handy.
Such a good accounting practice will save your firm from penalties. For instance, IT firms need to go through facility improvements in compliance with safety laws. A good accounting practice helps keep track of these compliances along with keeping good financial records, which help at the time of any legal scrutiny.
You cannot devise a great management policy without analyzing your business performance. Through good financial records, you can see where your money was used and what the long-term advantage of a certain investment was. This helps firms evaluate clearly how certain expenses led to the overall operation. You get a clear idea of which expenditures have been fruitful and which ones have not.
A clear-cut view of finances helps you make informed decisions about your future course of action. To survive in a competitive world, this is particularly important. You can understand market norms in light of your financial data. You know the economic landscape that you are operating in. This helps you devise a more competitive strategy based on the past financial analysis of your business.
You now know which operation costs can be cut, which tasks can be automated, and which departments have underperformed. This is crucial to managing the overall business of your firm. Get accounting software that gives you a bird’s-eye view of your finances so that you can create winning strategies.
As a small business, you need an accounting tool that contributes to overall business management. You must make every investment count, including accounting.
Free accounting software for small businesses
The market is full of different accounting software solutions that cater to the requirements of industries or businesses. Though different business accounting software solutions come for small businesses, here are the 7 best accounting software programs for small businesses.
Intuit Quickbooks Small business accounting software
QuickBooks is an accounting solution designed to manage payroll, inventory, sales, and other needs of a small business. The software’s features include marketing tools, merchant services, products and supplies, and training solutions. Each solution is developed according to different industries and their needs.
These software solutions are used to monitor expenses, create invoices and reports, track change orders and job status, and manage inventory, customers, vendors, and employees. In addition to these industry-specific packages and their corresponding capabilities,
Xero Small Business Accounting Software
Xero Beautiful Accounting Software is cloud-based accounting software for small and midsized businesses. Its product is based on the software as a service (SaaS) model and sold by subscription, based on the type and number of company entities managed by the subscriber. Xero accounting software is accessible from any computer or mobile device, making for smarter, easier accounting.
Tally Small Business Accounting Software
Tally It is a complete enterprise resource planning system with an excellent grip on accounting. Although it has many more core features than a business requires, its hold in accounting is truly commendable. Therefore, it is known more for accounting than any other of its features.
Zoho Books Small Business Accounting Software
Zoho Books is a smart accounting system designed for growing businesses. With Zoho Books, you can send professional invoices to customers and begin receiving online payments from them all from a single platform.
ProfitBooks accounting software
It is the simplest and fastest business accounting software for small businesses. It lets you create beautiful invoices, track expenses, and manage inventory without any accounting.
HDPOS smart accounting software
It is an on-premise and cloud-based billing solution. It caters to retail shops including fashion, electronics, sports, and books. HDPOS can manage multiple books of accounts for users with more than one location or company.
Wave Accounting Software
Wave is a web-based integrated accounting solution exclusively designed for small organizations. It features accounting, invoices and billing, payments, payroll, personal finance, and receipts.