What is Accounting Software for Small Businesses?
It is an application which stores and executes a financial transaction from time to time within the small business environment. This application takes care of the worker payroll, ledger, expenses, income, profits, and many other financial transactions.
Advantages of Accounting Software for Small Businesses
(1) It saves time: Accounting software helps small businesses save time when sales are made and when invoices are generated. It saves the time of both the seller and buyer. It helps process the transaction within the shortest time, instead of being wasted if it were to be a manual process.
(2) Uses automation system: An automated system is employed in every financial transaction whether expenses, income, or VAT on any goods purchased.
(3) It performs other special functions: The accounting software supports other special services, such as e-payment to anyone. Tax can be paid through e-payment. Online banking also can be done with the software.
(4) Errors and mistakes are prevented: This software helps in reducing errors and mistakes which can not be entirely eradicated when a manual process is used.
(5) It reduces stress: Stress is reduced with this accounting software because every function and process made are done automatically.
Disadvantages of Accounting Software for Small Businesses
(1) Expensive: Accounting software for small businesses is costly compared to the manual process. The software can be renewed monthly or yearly, which makes it more expensive for small firms to get and use.
(2) Maintenance: The maintenance of such software can be done every month or every year. This discourages the small business owners from using this software for any financial transaction.
(3) The installation requires expertise: The installation of the accounting software requires some form of specialization which in the process, equates to additional expenses.
(4) Special functions: Some functions used in the accounting software are used primarily by big businesses. This might be a strange thing to the small business owners, which in turn discourages the use of the software.
Features of Accounting Software for Small Businesses
(1) Creating invoice: Invoice creation is one of the features of accounting software for small businesses.
(2) Transaction dates are recorded: Dates are recorded for future purposes.
(3) Portability: The software is portable to use by the small business owners.
(4) High speed: Speed for inputting data is very fast. In addition, getting an output is also very fast compared to the manual process.
(5) Budgets calculation: It has the feature of calculating the budget for the financial year.
(6) The cost of work: It has the function of calculating the amount that will be spent on jobs to be carried out.
(7) Payroll computation: It has the feature of computing the staff salary.