Small business owners need to consider many things, and effectively managing your finances will likely be high on your list. Accounting software is a valuable and highly efficient tool that can lead to more effective business management.
In this guide, we’ll detail how to use accounting software to efficiently manage your small business finances, providing you with valuable guidance.
Pay Bills and Chase Revenue
Potentially the most valuable consequence of accounting software is its ability to help you better manage cash flow. You can clearly track money owed to you by customers and can see which bills are due to suppliers. Due dates, graphs, automatic payments and other useful features ensure your business will meet deadlines accurately.
As modern-day accounting software is cloud-based, you can access it anywhere with a stable internet connection. Therefore, if you ever need to check payables or receivables, you can find them efficiently within the one system.
Taxes
The best accounting software will automatically determine your GST, PAYG and other tax liabilities , saving you time and confusion. You, and your accountant, can easily see the details around transactions, and identify any adjustments that may be required. Copies of all lodged forms are also saved within the software, ensuring they are easy to locate in the future.
Expense Management
As discussed earlier, managing and monitoring expenses is essential to have a healthy cash flow. Accounting software programs allow automatic or manual recording of transactions, and many now have features allowing you to store and save original documentation via photos or files. Matching these files to payments can also be automated.
Real-time insights and analytics ensure you quickly identify when expenses or risk is rising.
Project Tracking
Instead of using multiple spreadsheets to track projects, accounting software is an excellent tool that allows you to input estimated quotes and times regarding specific jobs. You can then manually record the time you spend on the project, adding in expenses as they occur, streamlining visibility for your project’s performance.
Keep track of your project’s invoices and bills, ensuring you stay on top of your company’s income and project management strategies for better efficiency.
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We offer Xero software set-up and training, providing businesses with a hands-on approach that answers accountancy troubles. Get in touch today to discover more.