As a business owner, tracking your business’s financial performance is essential. It helps you quickly analyze your business performance in terms of cost and earnings, profit and loss, liabilities and assets for decision making, planning, and controlling processes.
Small businesses often have a limited budget and resources; thus, having an accounting system like MYOB, in place plays an essential role in providing information that helps small companies in their growth and development.
Here are some reasons why having an accounting system is essential for your business.
- Financial Control. The accounting system allows small business owners to control their finances using their computers or mobile devices.
- Timely and Accurate Reporting. Financial reports are essential. You can generate reports instantly from your computers or mobile device to analyze your business’s financial status.
- Better Decision Making. Having an accounting system helps you better understand your business financial status. It will help you determine where to invest more and where to cut expenses.
- Cost-saving. Accounting system automates core calculations and administrative procedures like tax-filing, so you no longer need an external party to manage the financial aspect of your business.
Nothing was created equal. Some have more features and advantages than others. Here are some things you might want to consider when choosing an accounting system.
- Business size and growth. Consider how many users need to have access to the system. Some charge a higher monthly rate for additional users.
- Functions and Features. Identify what functions and features you need. Most accounting systems in the market offer the basic like AR reporting, income vs. expenses tracking, linking a bank account, bank reconciliation, and income statement. Some provide additional features such as tax integration, HR, payroll options.
Imagine if there are no accounting systems, small business owners will have to spend their time creating financial reports for them to understand their business’s financial status to make decisions. Having the right accounting system for your small business is a cost and time saver!
At Tradies in Business we insist that all our members have an accounting system in place. It is virtually impossible to have a firm grasp on your business’ financials without it.