You will experience a growing complexity of your financial data as you expand your business. Managing business accounts in spreadsheets is time-consuming, difficult, and prone to errors. As businesses grow, they need scalable accounting solutions. For business owners to accommodate complex financial data, spreadsheet accounting cannot be the only solution. A computerized accounting program can be useful.
Accounting software offers numerous features that can optimize your business. Invoicing and billing, tax calculations, and project management are just some of the functions of free accounting software that can be used by any business. Aside from managing clients, reconciling bank accounts, and creating insightful financial reports, the software allows you to navigate your business’ smooth growth and expansion.
Advantages and benefits of accounting software
The billing and invoicing process
Due to the fact that these are the main sources of cash flow for your business, you rely heavily on invoicing and billing. Paper invoice management is tedious, error-prone, and time-consuming. When receiving recurring orders from a client, you cannot generate a physical invoice for each order received. The process of tracking and reminding clients to make payments is also difficult without automated software.
Paying online using a payment service
After you have invoiced your clients, you need to receive their payment. The collection of payments can be challenging if clients aren’t provided with convenient methods.
Providing your clients with quick and secure payment options is made possible by integrating your accounting software with online payment gateways. When you receive a payment through a payment gateway, your accounting system automatically updates your records. As well as credit cards and debit cards, several payment methods are available.
Maintaining expense records
Keeping track of your expenses will help you keep track of your cash flow. You will have a clear picture of your spending when you have accounting software track and categorize your expenses. In addition, accounting software can automatically record receipts by scanning them, uploading them, and recording them.
There is no need for paper receipts, and the risk of them getting lost is lower. Accountancy apps let you charge customers for expenses they incur on your behalf.
Keeping the bank accounts reconciled
Accounting software simplifies the reconciliation of bank accounts, a key component of an organization’s accounting. Your accounting software will automatically upload bank statements into your accounts if your bank account is linked to it. Based on criteria and bank rules you set, accounting software can automatically classify and match imported bank transactions. The final step to reconciling your accounts is to confirm and verify your matched transactions. With accounting software, bank reconciliations are simplified, keeping your business audit-ready.
Time tracking and project management
To ensure that you are able to charge customers according to time spent on projects, you need a powerful accounting program that includes timesheets. By using timesheets, budgets can be managed, time is tracked, and invoices can be sent. With accounting software, you can keep track of the time spent on tasks to avoid overcharging or undercharging your customers. Your clients can even approve your time entry before you charge them, so that everyone is on the same page. Once a project is completed, you can use the timesheets to compare the hours spent working with the budget and plan more efficiently for the next project.
Take advantage of smart-accounting by becoming a user today!
Keeping accurate financial records at all times is crucial for your business’s growth. It is, however, necessary to implement a system for keeping accurate accounts that overcomes the limitations of spreadsheets. By replacing spreadsheets as a key cog in your business, you can efficiently manage your invoicing and payments.
Using an accounting app for expense receipts simplifies the process since it reduces the amount of paperwork required, as well as eliminating the risk of damaged or missing documents causing data loss. Additionally, spreadsheets do not record time effectively during project tasks, which makes billing impossible. Accounting software solves this problem by keeping track of hours worked and converting approved entries into invoices.