5 Reasons That Accounting Software is Worth Purchasing

So what's the big deal with small business accounting software?  Why would someone spend money on something that can be done with a pencil and paper?  To get fancy you can use a calculator or a excel spreadsheet for free.

Here are 5 quick reasons that accounting software might be the best route for a small business.  Apply these benefits to your specific business and if 3 out of 5 make sense, then look into getting software.  If these reasons do not help your situation, then rest assured your business accounting is operating just fine the way it is.

1. Price - The first thing on everyone's mind is "What will it cost me?"  Of course there are many different products and prices, but here are few.  Quicken Home and Business 2009 is regularly $99.99, but with sales and rebates it can be purchased for $49.99.  Peachtree First Accounting 2009 is priced at $69.99.  These prices are as of winter 2008.  Older versions are, available as well, so this gives an idea of the price range to look at.  Also keep in mind that this is a one-time purchase of a product that will be used on a daily or weekly basis.

2. Taxes - Automation should be used for taxes whenever possible.  Manually figuring income, expenses, and deductions can take a very long time to organize and calculate or it can be very expensive to have done by an accountant.  Software provides summaries that show a running status of expected taxes with deductions for easy planning.  Reports can be customized to reflect specific financial information.

3. Time - Data is only entered in one time and can be copied and transferred to figure into many different fields.  All the income, expenses, and write-offs are managed in one program for easy accessibility.  See a running overall snapshot of what's coming in for the month, what's going out, and what's left in your accounts.

4. Accuracy - Once the numbers are input, the computations are automatically completed correctly.  There is no need to double check the work or wonder if the numbers have been calculated exactly right.

5. Dependability - Would you like the capital to be automatically sorted into the right categories of savings, bills, payroll, and supplies?  Be able to print reports to show employees or stock holders whenever they request to see 401K figures or cash flow reports for the last three months.  Set up bill reminders so your creditors can count on payments like clockwork.

Most small businesses have a goal of growing the organization larger.  If this is true for your business, take whatever time and energy is currently used for the accounting and multiply it by the amount of success that is desired.  When using accounting software, only the increase in data entry is applicable because all the calculations are still automated.  There are many more benefits of accounting software for individual situations, but just think about these 5.  Are these features worth 2 tanks of gasoline or an office chair or desk?