If you’re still accounting the archaic way – and by that we’re talking about spreadsheets – do you really think it is meeting the financial needs of your business? Now is the perfect time of year to consider investing in accounting software, but with all of the prices and commitments, you may wonder if the price tag is really worth it in the end?
For most, the investment is well worth it – and hey, it is a tax deductible expense if you weren’t aware. Ultimately, assessing the price will depend on your company’s budget, accounting needs and how much time is saved with the program you choose.
The entire purpose of software is to reduce how much time you spend on your accounting. If you are still spending hours each week with a particular program, it may not be worth it to use. But, if a program can cut your accounting time down by hours – or even only require you to login once a day and verify transactions – then it may be worth it.
Think about what you can do with the time you aren’t inputting, reconciling, etc.? You could improve productivity, add on new company projects, etc. If you’re paying an employee to input everything for you, you will also save. Because now you can pay them to take on other tasks that are more revenue-producing.
Reduction in Errors
Even a minor error on your tax return can spell big problems later on. If your accounting software reduces such errors, it is always worth it – after all, the cost of re-filing, creating tax amendments or penalties is much higher than the monthly cost of accounting software.
Software that automatically downloads and syncs transactions also reduces the risk for human error – because all of your transactions are automatically imported into the software.
Additional Features – Outside of Expense and Income Tracking
Today, accounting programs do a lot more than track your income and expenses. In fact, there are some that can monitor inventory, track aging accounts, invoice and collect payments, remind clients of past due invoices and even create tasks and project management steps. The more a program does for you, the more the cost shouldn’t matter – especially if you are currently using five different programs to do what a single program can do.
You may be surprised at just how affordable accounting software can be these days. In fact, some are less than $20 per month and do quite a bit for you. Even those over $20 a month often have features like payroll, advanced reporting, etc. Take a look at how much money your program will save you (in both revenue and productivity) before you scoff at the price.
If you’re still not sure, take a look at our accounting reviews to see which companies offer affordable accounting programs – you may be surprised at just how little you pay for convenience these days.