A lot of small businesses are still failing to reap the benefits of accounting software, according to one accountancy expert.
Karla Dennis recently stated that many businesspeople are making bookkeeping errors that would be avoidable if only they used software instead of recording things manually. This is particularly pertinent when it comes to filing taxes.
Relying on your memory when it comes to calculating expenses can cause real problems especially when personal credit cards have been used to purchase items for a business, she said. When it comes to filing taxes, people might find themselves estimating their expenses and arriving at figures that either well below or well above the actual spend.
Accounting software can be a valuable tool in preventing these mistakes she continued. Business owners are also advised to appoint a reputable chartered accountant or a firm of tax accountants to review their financial data.
Another business expert, Gwen Moran, recently said that the advantages you get from financial software more than makes up for the initial outlay.
Whilst a lot of businesses may baulk at paying out a large sum for software, others are taking advantage of the increasing range of cloud computing software that is now available. Users of cloud computing systems pay a monthly fee to use the software and because the package is hosted on a central server, they don’t have to pay licence or maintenance costs. Furthermore, the system can be set up so that your accountant can access your accounts remotely.