Choosing Bookkeeping Software That Will Make Your Heart Sing

Jan 4, 2021

Choosing Bookkeeping Software That Will Make Your Heart Sing

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Small business owners need to guard their books like a mother bear protects her cubs. This is because your financial records (or books, as they’re often called) are essential to your success. When handled with care, they’ll keep you moving forward in an accurate, sustainable, and legal way. If they’re neglected, your business could be on the path to misery and woe.

It’s been proven time and again that when a small business’s finances are in a good place, its owners are able to deliver their best work. They’re able to make prompt payments, which boosts their credit to new heights. They’re organized enough to follow up on overdue bills, keeping their cash flow strong. They have the documentation on hand to impress lenders and stand a better chance of qualifying for financing. And crucially, they have all their accounting details buttoned up, preparing them well for tax season.

Given the importance of bookkeeping, you’d think more business owners would take it seriously. But crunching numbers and handling details with precision aren’t strengths for all entrepreneurs—so they pour their passion into other aspects of the business and let their bookkeeping go haywire. Make no mistake, bookkeeping isn’t a static thing that will patiently wait for you to make an occasional cameo. It’s a mischievous bear cub, remember? If you aren’t carefully watching over it, the poor critter will wander off and get lost or injured.

For small businesses, the consequences of neglecting your books can be substantial. Inadequate financial management is a big factor for many of the businesses forced to close their doors permanently each year.

“Here’s a sobering statistic: About 20% of small businesses will fail within their first year,” explains business expert Wendy Nguyen. “Worse, nearly 50% of businesses will fail by the end of their 5th year, according to data from the US Bureau of Labor Statistics. The most common culprit? How a small business handles its financial resources, whether it’s a lack of capital, inadequate business planning, or mismanaging their cash flow and marketing budgets.”

The good news: you don’t have to be a financial whiz to keep your small business books updated and accurate. Our old friend technology has stepped up to handle these burdens for you. Modern bookkeeping software makes it easier than ever to track, record, and project your finances.

Here is just a handful of the benefits provided by a good bookkeeping program:

  • Fewer errors
  • More secure data storage
  • Better efficiency
  • Easier to sync with other programs
  • Better accessibility
  • Never takes a sick day
  • Never watches YouTube during work hours
  • Never tempted to “skim a little off the top”

You might be thinking that these types of software programs are only for major corporations—not so. Bookkeeping software can be quite easy to use, and the advantages it provides are needed by nearly all small businesses.

“Using accounting software saves hours of time compared to handling the books manually or using a spreadsheet,” explains The Balance Small Business. “Accounting software reduces or eliminates redundant data entry, such as entering the customer’s address on the quote and then adding the work order and invoice. It’s a booming industry, with 1 study projecting that the global accounting software market will reach $11.8 billion by 2026. If you are a sole proprietor with modest income, you may not need accounting software, but small business owners who carry inventory and are juggling a large number of customers and employees will save time and have more accurate records if they use accounting software.”

The reasons for integrating bookkeeping software into your business are clear. What’s next is the process of choosing the best option for your unique goals and initiatives.

About the Author

Grant Olsen

Grant Olsen

Grant Olsen is a writer specializing in small business loans, leadership skills, and growth strategies. He is a contributing writer for KSL 5 TV, where his articles have generated more than 6 million page views, and has been featured on FitSmallBusiness.com and ModernHealthcare.com. Grant is also the author of the book "Rhino Trouble." He has a B.A. in English from Brigham Young University.

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