Running a business is a lot of work. There are customers to attend to, meetings to schedule, products to buy, and staff to manage. The last thing that you want to have to deal with are concerns to do with finances. If you are still keeping your business finances in paper records, or on an excel spreadsheet, it is time to stop wasting time and energy on faulty methods of bookkeeping and upgrade to business software.
There are many reasons why your company needs business finance software and they are not limited to time-saving and record-keeping. There are a whole host of reasons that you need to upgrade to a good business finance software program as soon as possible.
If you want to learn more about this important part of running your business, read on!
What is Business Finance Software?
Financial management software programs are designed to track your expenses and your payments to vendors and employees. These software programs also track your income, taxes that are taken from paychecks, and many other important things. You can even use these products to do payroll!
Business finances software also generates reports and can help you to budget and stay within projected earnings and spending limits. Without this kind of help to support your business plan, you are going to be guessing at how much money you are making and how much capital is going out the door each day.
What Can Business Finance Software do for You?
Business finance software can do so much for you and it will save you from hand calculating important facts and figures all day. If you are sick of accounting errors or having to work with a large team of people to manage your finances, quality business finance software can solve most of these concerns for you. Being able to track all of your business’ expenses and all of its income in the same place is extremely helpful for a whole host of reasons.
Here is a list of just a few of the things that business finance software can do for your business:
1. Real-Time Data
This is perhaps the most important thing that business finance software can do for your company. Almost all of these programs offer different ways to run reports about customer data, projections about money that will be made during each quarter, and a variety of other important items that you might need to know. There are different levels of complexity that your business finance software can undertake for you, so make sure to pick the right program so that you can do the reports that you need.
The kind of data that your business finance software tracks for you will help you to budget, save money, and improve processes. It can also help you to save money on advertising, vendors, and other outside contacts who provide services to your company. If you want to know for sure what all of the metrics of your daily running costs are, the data collection function of business finance software is essential to your business’ needs.
2. Handle Customer Information
There is nothing worse than losing information that you need to create a customer profile, to send a bill, or to send out a product. You never feel more sheepish than when you have to call a customer and ask them for information a second time that they already gave to you. On top of this, if you have not spoken to someone in a long time and have forgotten their address or lost the spreadsheet their data was entered in, you might be out of luck as far as reaching out to them.
Business finance software will track all of the information of every client that you work with so that you can send them invoices, take in their payments, and track their history with your company. This is essential information for tax season, as well as for budget reasons, and you will be glad that you do not have to store customer data in a bunch of different locations.
3. Reduces Errors
Being audited is really stressful, and tax season can be quite tough on your and your accountant if you have errors in your record keeping. Thankfully, many business finance programs will highlight potential errors, or display warning messages when the numbers or information that you have entered seems not to make sense. This can help prevent errors when other members of your team are entering information in the system for you and being able to ask your personal assistant or another team member to input information can save you time.
This kind of function can be a big help if you accidentally leave a zero off a large payment, or if you enter something as an expense that is really income. Business finance software can also run daily reports to check that all the numbers that have been input into the system make sense. It is always best to catch errors long before they have slipped through the cracks.
4. Taxes Are Super Easy
Tax season doesn’t have to be a stressful time of hard work that makes you regret all the times that you did not keep better track of payments and expenses throughout the year. With business finance software, you can track all the taxes and fees associated with every expense that your company incurs. You can also enter items according to their categories so you can track expenses, write-offs, and paychecks by different indicators.
This is really helpful during tax season to prevent confusion or delays in filing. Your accountant will thank you and your sanity will enjoy the much-needed break from tax season chaos and stress.
5. Billing and Invoicing
This is one of the best time-saving features of most business finance software. It is as simple as the click of a button to generate invoices, send out receipts, or record refunds. These items will all be linked to the unique customers that you have stored in your database, and you can access all their information via reports, or through their individual profiles if you need to see a history of transactions to do with each person you work with.
Billing and invoicing can take a ton of time if you don’t have software to help you out. Thankfully, business finance software can even be set up to print labels, or to create envelopes to send out invoices in. There is nothing that saves more time with business finance software than the billing and invoicing feature.
6. Tracking Quarterly Projections
Sometimes staying on track each quarter can be tough. Things that you did not expect show up on the horizon, or you have to end a contract with a major client and you lose that income that you were expecting. Without the ability to do quarterly projections, you might be working with numbers that are not accurate.
Being able to create adjusted quarterly projection reports is a major part of staying on track financially throughout the year. Business finance software will make this process easy by allowing you to create reports like this with the click of a button. You can even set these reports to run on set days and at set times if you want, which can save you a ton of time and brain space.
7. Prevents Fraud or Theft
While it is not likely that you will have any kinds of issues related to employees stealing from your company, having the proper bookkeeping software in place will make it much less likely that you would miss someone skimming from your accounts. Sadly, this kind of thing is very common with companies that do not have a proper business finance software solution in place.
You will want to check the entries from other workers in your company daily to make sure that they make sense, and then compare them to overall projections, but this data will provide good protection against bad actors taking money from you without you even knowing it.
8. Automatically Linked to Bank Accounts
One of the best features of a good business finance software solution is that it can be linked to your bank accounts. This means that you can see in real-time the amount of money in each of those accounts, and in some cases, you can be spared trips to the bank to deposit funds. This may not be available with all business finance solutions, but many of them will offer this kind of benefit.
Imagine being able to access the banking information that you need without having to run separate reports and without having to gather separate documents from different business entities!
9. Reduced Costs
If you are using good business finance software, you will not need to hire a unique team of people just to handle the tracking of your expenses and your income. The team members that you do have working on these kinds of tasks will be freed up to do other important functions because the software will save so much time. This means that you will not need an expensive payroll team, and that too will save you money.
In most cases, the cost of the software will not be as much as the cost to maintain a whole separate payroll and accounting department. Some software options will be more expensive than others when you first buy them, but most of these solutions should not require much in the way of costs after the initial purchase.
There are many automated processes that your business finance software can do for you, saving you time and eliminating errors. Automated processes can even compile reports for you on a set schedule, making sure that you don’t forget to run the numbers that you need to track for your business needs.
Financial statements and other information can even be delivered to specific people’s emails inside of your organization so that they can work on what needs to be done efficiently and without missing deadlines. This is one of the best parts of business finance software products. You don’t need to set reminders to take care of the business that the software can do for you!
11. Following the Money Trail
Accurate bookkeeping is important if you want to make sure that you can track where the money is going all year long. You want to be able to see when a purchase was made when items were sold, and when employees were paid. Without being able to follow the money trail, you might have to go back and track your data all over again.
Even worse, sometimes you might lose the thread of where the money came from and where it was going. This can be a major issue during tax season and it might also be a problem if you get audited. There are so many reasons that tracking the money trail matters, and this might be the most important thing that business finance software can do for you!
Your Business Needs Business Finance Software to Run Efficiently and Effectively
These days, there is really no way to run your business without business finance software. There are so many parts of your business’ financial processes that will run better if you let your business finance software take care of them for you. Besides increased accuracy and improved report-making processes, your business will be able to track data, retain client information, and create quarterly reports with ease.
If you have gotten tired of errors in your reports, or you are sick of having to employ a huge group of people to run your financial reports and track your business’ spending, then it is more than time to get a business finance program for your company.
If you haven’t purchased business finance software, there is no time like today! Get your business finance software today and start optimizing your business for future success!