Tax season will be here before you know it, and if you’re the type who keeps your business receipts in a box or have a bunch of crunched numbers stapled together, you have your work cut out for you. Not only will you be spending countless hours sorting through and organizing the mess, but you will also be wondering if there was just one receipt or bank statement that didn’t make it into your little box of tax documents. It’s time for you to get organized. It’s time for you start using accounting software. Aside from saving you time and stress, here are some other key reasons you should consider giving in to the software that will change your life.
Easy Entry. You have the option of entering all of your transaction data into the system yourself. Or, if you’d prefer, you may ask your bank to directly download your bank account information for you. You will then be able to clearly track your credit card payments and statements, ensuring that none are left behind or fall through the cracks.
Evaluation of Business. Your accounting software will be able to provide you profit and loss statements, balance sheets, and other statistics that will aid in your assessment of your business’s status. You will be able to see your business’ strengths and weaknesses, as well as areas that require dire attention. Also keep in mind that investors require the submission of documents such as these when considering financing your business; having a program that generates the requested documents will save you time and money you would be spending later.
Comparative Review. The program will also produce comparative income statements, meaning you will be able to compare your current year’s productivity with years in the past. This will keep you informed as to where you stand, as well as where you could be and should aim to be.
Accounts Payable Features. The accounts payable features will not only help you to monitor bills and the cash flow needed, but it can also create a summary report for each, individual vendor your business associates with. This not only gives you a neat report to provide for the merchant in question, but it also enables you to quickly pull up previous invoices or payments made. This will keep you organized as to where money is owed, to or from whom, if anything is overdue, and much more.
IRS-Approved. In the event that your business gets audited, having an accounting program will definitely work in your favor. Once the auditor sees that you have taken advantage of such a system, he or she may be a bit more relaxed in the assessment. A few swift samples may be taken, and if it all lines up, that may very well be the end of it. The audit is bound to be shorter and a tad less painful than if you had not used an official program.
The benefits are endless. The use of an accounting system can only make your life easier. According to the 2014 Best Accounting Software Review, the five best accounting software programs available today are FreshBooks, Quickbooks, SageOne, Zoho, and Xero. Get your business ready for this upcoming tax season and look into which system is best for you.