Startups need accurate and timely financial records in order to make key operational decisions. Bookkeeping software can streamline this process. Without proper bookkeeping, you risk costing products incorrectly or not having the inventory to fill a crucial order.
Having quality financial records does not mean you need complicated bookkeeping or accounting software. Bookkeeping records for small businesses can be managed cheaply, efficiently and quickly. For startups, spreadsheets offer an easy means to record revenue, expenses and other accounts; they can also be used to complete any reconciliations and prepare financial statements.
As your business grows, the data you record will increase and become more complex, so it is important to consider if the software you are using can provide all of the users of your bookkeeping data with the information that they will need.
There are many bookkeeping software programs available. Several of them offer customers the ability to customize for their needs, by adding individual modules or producing certain reports. These features allow you to have a simpler or more complex system for payroll or inventory, as needed. There is also industry-specific software that is tailored to your industry’s needs. Most of the software programs also integrate the sub-ledgers (such as the detailed listing of accounts receivable) with the main accounting records, which streamlines the accounting process as the business becomes more complex.
If the bookkeeping is done by an external accountant, the accountant can assist the owner in the selection of an appropriate accounting software package. In many cases, outside bookkeepers provide bookkeeping software.
Before choosing what bookkeeping software (including spreadsheets) would best suit your business, consider the following questions:
Wave, Sage 50 Accounting (formerly Simply Accounting), QuickBooks, QuickBooks Online, FreshBooks, and Sage 300 (formerly Sage Accpac) are all examples of accounting software designed for small businesses. They can be used in conformity with Canadian Generally Accepted Accounting Principles (GAAP).
Use of bookkeeping software offers the following advantages: