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- Ways Small Business Accounting Software Can Help Your Startup
Ways Small Business Accounting Software Can Help Your Startup
Small business accounting software has certainly come a very long way in the past few generations. In the Philippines, most large businesses have been using some kind of computerized accounting software since the 1970s and 1980s, and it’s only recently that microbusinesses are moving on from the manual accounting that had come to characterize the Philippine small biz entrepreneur landscape.
And despite the name, small business accounting software these days is capable of handling more than just basic accounting processes. They are more properly described today as “enterprise resource management” or ERP systems, as they can affect virtually all business processes, from sales and marketing to manufacturing and customer service.
Simply put, if there is any part of your business that can generate or use data, it can benefit from small business accounting software.
Here are some important ways small business ERP/ accounting software can benefit your business.
1.) Accounting software reduces effort duplication
We all have horror stories about manually inputting or copy-pasting data whenever we need to generate a new report or figure out what exactly is happening to an organization. Accounting software can be used to automatically send specific kinds of data wherever it is needed, reducing the chance of error and greatly speeding up the time it takes to make reports.
2.) Fewer barriers to inter-department data sharing
It can be difficult to consistently share the right data to people in different departments, even if their workstations may be right across yours. Without the data automation that an updated accounting system provides, you have to consciously make time for it and make sure the data is all in order before you share it. This can be a very slow process, especially when you’re dealing with data-rich lists thousands of entries deep.
With an accounting system that’s correctly implemented, this sharing can all be done automatically, allowing everyone to focus more on what matters to their scope of responsibility.
3.) Quick and accurate payroll and accounting
Of course, accounting systems are meaningless if they cannot perform accurate to-the-second employee payroll processes. Without an automated accounting system, figuring out how much each employee should be paid and paying them on time can be a very precarious challenge, as one error can have very serious implications. Accounting software allows these processes to be simpler, more transparent, and more convenient for everyone involved.
4.) Small business accounting software lets you keep your payroll short
Because you need fewer people crunching numbers, accounting software, as well as other types of data automation, can reduce the need for more employees. For a small startup, the salary of a single employee can be quite substantial compared to the rest of its income, which makes this benefit particularly important.
5.) Accounting software makes tax compliance simple
Complying with the Philippine Bureau of Internal Revenue’s many different regulations can be a major undertaking for small startups, in and of itself. While you will still need an accountant to help you, having ERP software makes it easy to account for every single transaction your business makes, which is a basic BIR requirement. This means you can spend less time focusing on compliance and more time looking into how to grow your business.
With so many software choices, including modular suites intended for small businesses such as SAP Business One, there really is no reason to avoid getting accounting software. In fact, it may almost be considered a prerequisite to growing your small business.