There are numerous reasons why organizations elect not to implement accounting software. These include the perception of expense, worries over complexity, and the notion that you can place receipts in a shoebox and submit them to the accountant at the end of the year.
All of these arguments may have been valid in the past, but the times have changed, and there are now incredibly compelling justifications for mandating accounting software for all firms. Let’s begin with the price. In contrast to the past, when accounting software was costly and the price increased with each additional user, it is now easy to acquire a solid accounting program for free.
There are a variety of free online and desktop software solutions available. In addition, competent accountants give clients their preferred accounting system. This expedites the preparation of client accounts, saving accountants time and money.
Fear of complexity is why organizations are hesitant to adopt accounting software. Over the years, we have encountered highly complicated accounting systems, some requiring users to think creatively. While there are still complicated dinosaur-like systems, their numbers are dwindling as software vendors recognize the need to remain competitive in terms of design and pricing. Numerous simple, user-friendly, and comprehensive accounting systems are in high demand among business owners today.
The belief that preparing financial statements is a one-time process that should be delegated to accountants is the final reason why firms do not consider utilizing accounting software. There are several reasons why this is no longer true. By delaying the creation of financial accounts until the end of the year, the business owner needs to be made aware of the true condition of his company for 364 days. This may result in payment collection delays, missed opportunities to negotiate loans, dangerous checks, and excessive bank fees.
Accounting Software Permits Firms To
- Manage bank balances
- Analyze revenues and payments
- Quickly track outstanding receivables
- Plan cash flow and track current and predicted statistics
- Interpret economic and business circumstances
- Provide business data to support financing requests
In conclusion, a business with accounting software can be proactive. However, there is an additional convincing rationale for maintaining regular records. HM Revenue and Customs initiated interim audits of enterprises suspected of tax evasion the previous year. The company inspection teams have made it plain that they want enterprises to maintain accurate records throughout the year. In contrast, in the past, they only anticipated an accounting update at the end of the year.