With recent news of price increases for some popular cloud-based accounting software packages, we have had a few customers ask us to see if the subscription price is still worth it.
Well, the short answer is yes.
Read on for why we think cloud-based accounting software is worth the subscription price…
1. It saves time
Accounting software saves time. From reconciling transactions with integrated bank feeds, to sending your end of year info to your Accountant. Accounting software can be a massive time saver. And the less time you spend managing your financial data, the more time you have to make money. Just think what an hour is worth to you…
2. It is less likely to introduce errors
Having your financial information managed, calculated and verified in a system supported by a team of developers with quality control is far less likely to result in errors compared to managing your information in a spreadsheet.
Accounting software systems have error checking and balancing built in, making it easier to identify data entry issues too.
3. It can manage your documents
Having your financial documents (like receipts and invoices) attached to their reconciled bank transactions will make your Accountants life much easier than keeping them in a shoe box or a folder. Which will save you money.
Plus, if you need to find an invoice for a warranty, no problem. The search tools built into most accounting systems will help you find the document you need.
4. App integration
Being able to integrate apps like quoting tools or project management systems into your accounting data can be a game changer for efficiency. Getting a single view of profitability and margins on jobs can give your business a real edge.
5. It makes things easier for your accountant
Your Accountant will have systems and processes designed to deal with data from popular accounting software systems. This means they will be more efficient processing your data than if they were using a bespoke spreadsheet that you have produced yourself.
And having an efficient Accountant (Like Kiwitax) means a lower cost of accounting.
6. Your data is securely stored in the cloud
Accounting software stores your financial information securely in the cloud across multiple servers, so the chances of losing your data is very slim (although we do recommend still backing up your data with a service like Control-C).
Data stored on your computer in a spreadsheet however is at the mercy whatever happens to your computer. Do you regularly back up your computer? What if you lose your laptop? What happens if your hard drive fails?
Unfortunately, IRD doesn’t take a sympathetic view on missing financial information due to computer mishaps.
7. Accounting software can strengthen your cashflow
Having a single view of outstanding invoices in an accounting system can help you get a handle on your cashflow. The automation tools built in can send out reminders for overdue accounts, helping you to get paid faster and strengthening your cashflow.
8. Send invoices from your phone
Accounting software lets you send invoices to your clients from phone while you are out and about. And the faster you can invoice, the faster you can get paid.
What accounting software should you use?
In case you are wondering what cloud-based accounting software systems we are talking about in this article, we recommend Xero or MYOB. There are other systems out there, but none have the integrations and ease of use that these two offer. Find out the main differences between these two cloud accounting systems here.
If you liked this article and want to start using accounting software for your business, let’s chat!
About Kiwitax – Award winning business improvement, tax and accounting service
Here’s the thing. As a business, rental property owner or start-up, you get a kick out of having your own gig. But chances are dealing with your tax and accounting leaves you cold. Good news! We love it, so hand it over to Kiwitax and we’ll look after it all for you.
Whether you deal with us online, by phone or drop into our Napier office, you’ll find a friendly, professional hardworking team ready to work with you, however you keep track of your financial information and from wherever you do business. And all for a fixed price. It takes just two minutes to get a quote.
Plus if you’re at a loss to know how to improve aspects of your business – from growth planning to cashflow management, even tax debt and so much more – we’re all over that too. Our Business Improvement advisors can help you make a plan and put it into action.
