The best way for small business owners to keep up with their finances is to leverage accounting software. The right solution helps track accounts receivable and accounts payable, show profitability, and help prepare for tax season. There’s more than one type of accounting program available for small businesses, each with different pricing plans and additional features. It’s important to choose the right type of accounting program for your industry and the number of employees you have.
Why Use Accounting Software?
Accounting tools help small business owners spend less time on data entry by allowing them to sync business bank accounts and credit cards with the software. This funnels all transactions through the software so they can be categorized into different accounts. Ease of use is key when choosing an accounting tool, and it helps to have a basic understanding of accounting principles so you can check financial reports for accuracy. The best accounting solution for small businesses has basic functions including invoicing, bank and credit card syncing, accounts payable, accounts receivable, online payment collection from customers, and basic financial statement preparation.
How Does It Work?
Once your bank accounts and credit cards are synced, transactions will appear in financial statements based on their classifications. Business owners can review profitability, compare revenue and costs, check account balances, and forecast tax liabilities in real time. Spending less time accessing financial data helps business owners gain valuable insights that aid in business decision-making. Most accounting software allows third-party application integration, such as integrating with a point-of-sale (POS) system to record transactions, sales tax liabilities, and sales subcategories.
As your small business grows, so will the complexity of your business needs and finances. The best way for ecommerce business owners to increase their bottom line and grow their online businesses is to rely on expert ecommerce accounting services and the digital expertise of accounting pros. Fully Accountable is a digital accounting firm of expert ecommerce bookkeepers and accountants who specialize in industry niche solutions, multi-sales channel operations, omnichannel marketing, and reconciliation of merchant accounts. Their ecommerce accounting software features daily bookkeeping and real-time financial data, reconciliation of accounts, monthly forecasting and budgeting, cash flow management, company financial planning, and business growth planning and reporting.
Key Features of Accounting Software
There are some important key features that ecommerce store owners should consider when choosing the right accounting software. The right solution should be capable of generating different reports, including the statement of financial position, the statement of profit and loss, and the statement of cash flows. The software should have additional features like data visualization options to help users get a clear picture of the health of their ecommerce stores.
An accounting solution should have security features to protect your sensitive data. This includes a minimum of 256-bit encryption and two-factor authentication to restrict access to the dashboard. This is especially true when considering online accounting software. It’s important to choose a software solution with integrations with other software programs. Most accounting solutions have integrations and add-ons to maximize functionality and make it easy to run an ecommerce store via a central dashboard.
Another important function for ecommerce business owners to look for is robust support and software updates. Look for a program that always adds new features to streamline performance and improve the user experience. The best solution has multiple customer support options such as live chat, email, and phone.
The best way to stay on top of your ecommerce business finances and spend less time combing through financial data is to utilize accounting software. The right solution takes the guesswork out of accounting tasks so that business owners can focus on growth and improving the bottom line.