Entrepreneur The importance of accounting software and the preferred types for small business

As a matter of fact, a good number of them are still stuck in the "pen and paper" system because that is what they’re accustomed to.

It is, however, important to state that there are various reasons why every entrepreneur should consider using accounting software for their business instead of the manual "pen and paper."

Be that as it may, your small business is not required to use accounting software, but with so many benefits, combined with a variety of options, it is an idea to consider.

Here are three reasons why using accounting software is preferable for small business

1. Organization

Having a scattered financial system can gradually lead to the collapse of any business because your finance is the foundation on which your business is built on.

However, accounting software ensures that you know where you stand at all times of the year. It also makes it easier for you come tax time, especially if you are handing your information over to an accountant.

2. Easy and Secure Sharing

Unarguably, there was a time when emailing accounting information was the only way accounting details can be shared. But that seems to have changed for some time now.

Presently, entrepreneurs who are aware of the advantage of using accounting software over pen and paper now use cloud accounting to share the information about the financial position of the business to different business stakeholders.

And they do it with ease like it's nobody's business.

3. It gives you access to your financial information from anywhere

Having the ability to access the financial information of your business from anywhere and at any time is one reason why using accounting software should be a top priority for any entrepreneur.

With just an internet connection, you as the business owner can keep track of the financial situation all year round while moving from place to place sourcing for better means to grow your business.

4. It gives accurate history

Keeping track of company's performance becomes easy with accounting software. Questions like, did the company perform better this year than last? Did you add more clients than you lost?

Questions like that and other similar ones are answered with ease, with the help of accounting software.

In addition, you have a history of every day, month and year dating back to when you implemented the system.

Using Aplos' nonprofit accounting software makes it simple to manage the accounting, track donations, accept donations online, and more.

5. It brings discipline to the system

Unlike pen and paper finance system that can be manipulated with ease, making use accounting software brings a certain kind of discipline to the system; owing to the fact that it is being monitored by almost everyone the accounting details have been shared it.

Read on to find out some of the best accounting software for small business

1. Freshbooks

Freshbooks is arguably one of the best accounting software for freelancers and small business owners. It is well-balanced in terms of key features, inexpensive pricing, and support.

2. QuickBooks Online

Experts have suggested QuickBooks Online is becoming the most popular online accounting software that can cater to the needs of small and developing businesses. It is also very useful for big enterprises as well.

3. Xero

Xero is the answer to QuickBooks Online users who wish to transfer to a bigger accounting solution. Xero’s interface is almost similar to that of QuickBooks Online, but its feature is more.

4. Zoho Books

Zoho Books is arguably one of the top accounting software for small business. It is ideal for micro-businesses as the app has the most extensive basic accounting tools.

Zoho Books is actually a be good substitute for Freshbooks.

5. Wave

Wave is arguably the most comprehensive freemium for basic accounting. It is ideal for freelancers, consultants, or small business with nine or fewer staff.