If you are a business owner, at some point, you must have used a spreadsheet for tracking your finances. Even though it is a good tactic initially, as your business grows, you need something a bit more sophisticated and with more functionalities to stay on top of all the financial transactions. This is exactly what accounting software can offer you.
Singapore holds a strong position in the global economy. In fact, it can be considered as the business epicentre of Asia. The city has been acknowledged as a business hub that features political stability, developed infrastructure, a skilled workforce, open business policies, intellectual property rights, and English as the main working language. Many companies in Singapore have ditched Excel and are leaning towards accounting software because of the multitude of benefits it offers. Accounting software can record and categorise your financial transactions. And depending on what software you buy, you get a multitude of features. For instance, if you use the software Xero accounting in Singapore, you can get a real-time view of the cash flow.
Read on to learn more about how having accounting software can help your business:
- Saves Time
Accounting software is an investment of the time you will need to spend on setting it up. But once it is done, you will save many hours every week, which you would otherwise spend on time-consuming manual bookkeeping. For example, you won’t have to download CSV files from your bank accounts or credit cards and enter data manually on the spreadsheet to review the transactions. Instead, the software will automatically pull the data.
- Generate Financial Reports
With accounting software at your disposal, you won’t be waiting for your administrative assistant to put together a monthly report. The accounting software will have built-in reports that are updated automatically. You will be able to download your income statement, cash flow statement, and balance sheet instantly. It will also show you key insights like expenses and income for the month or year. Besides, if you have specific reporting needs, you can always customise the reports by adding extra details and filtering the data.
- Synced Data
Data is stored across several platforms in most companies, and it can take hours to switch between them to collect the data. On the other hand, with accounting software, all your data will be synced via API. This way, you won’t have to download your financial information from individual sources and put them together.
- Data Accuracy
With accounting software, you won’t have to update multiple cells in different sheets manually to make changes to the records. All your financial reports and statements will be updated automatically to reflect all the changes you made. This will ensure that your data is free of all errors.
- Professional-Looking Statements
As a business owner, you will get external requests for financial statements. And you must professionally present those documents, especially when you are meeting with potential investors. Your financial statements have to be properly formatted, accurate and must be delivered on time. Failure to do so will negatively affect you and your finances, making you lose out on deals. Meanwhile, all the financial statements produced by accounting software are in a standardised format.
- Simplified Payroll
At some point, you will need a specialised payroll system, and you can use accounting software for handling your payroll. The software can automate payrolls along with the calculation of insurance and healthcare contributions. The software will make sure that you get accurate information.
- Detailed Insights
Once you have set up the accounts properly, accounting software will track the transactions by projects, locations, classes, or departments. This way, you have a clear picture of your areas of expense, and this will help you produce specific reports and make decisions accordingly.
Once your transactions grow to a point where manually processing them takes up a lot of time, it is time for you to switch to efficient accounting software. Meanwhile, software like Xero accounting in Singapore is a popular option. So, in short, choosing efficient accounting software will reduce human error, allow you to continue to scale, and free up your team for more important tasks.