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5 Reasons Behind The Increase In Adoption Of Accounting Software
The drastic shift from manually managing finances and financial records to adopting accounting software is one of the most important business trends of 2021. The growing demand for computerized accounting across different industries has accompanied the surge around the globe. The global software market was worth US$ 12,071.6 Mn in the year 2018 and is expected to reach US$ 20,508.0 Mn by 2026 – showcasing a remarkable CAGR of 8.02% during the forecast period.
This transition from traditional ways to modern, automated ways of accounting management shouldn’t come as a surprise to anyone who has manually handled the accounting and bookkeeping tasks. Besides being extremely vital for a company’s financial health, these tasks can become cumbersome as a business grows and expands.
As a result, it makes sense for people to move towards automated ways of accounting that take care of their past and present accounts and give informed predictions and make the business future-proof. As a result of this transition, it has graced the market, bringing different features to the table. Based on your requirements, you can click here for the best accounting software and know about the features that you need.
All in all, whichever software you go ahead with, you are going to witness the following benefits, which are also the reasons behind the increasing adoption of accounting software in 2021:
Accounting Software: Seamless invoicing and billing
Accounting software addresses manual invoicing and billing issues and provides you with all the required features to simplify your invoicing process. Accounting software allows you to create profiles for recurring customers and payments and schedule invoices to send automatically whenever required.
You can also include payment terms, notices, and a heads-up to your customers in your invoice. Not only that, but you can also track all the pending invoices and follow up with the customers to improve your cash flows.
Expense tracking is crucial for getting a grip on your cash flows, including pending and predictable future expenses. With accounting software, you get a bird’ eye view of all of your expenses, and you get the ability to categorize them as per your requirement to get a clearer picture.
You can also use accounting software to scan expense receipts, upload them, and record the information on the cloud. Doing all of this also makes it easier for you to bill your customers on the costs you had to incur for them.
Bank reconciliation is one of the most important tasks for any business, and software streamlines it. By connecting your bank account with the accounting software, you get all the historical statements from your bank account.
Further, you can also set criteria and custom rules to categorize or fetch only specific bank transactions. With simplified bank reconciliation, software ensures that your business is always audit-ready!
Adherence to tax regulations
Accounting software is designed to adhere to the tax rules and regulations that your business is bound by and make tax calculations faster and more accurate. Hence, accounting software integrated with MTD aids small businesses with VAT compliances.
Not only that, but if you are working with multiple taxes, it helps you find the right tax for your transactions and gives you a comprehensive overview of all the taxes by producing an easy-to-understand tax summary report.
This enables you to stay organized and ready for the tax season. With accounting software by your side, you will never have to worry about tax penalties or missing out on tax rules or regulations.
Comprehensive report generation
As a business owner, you are responsible for keeping all the finances in control, creating reports, and communicating your findings to other business stakeholders. Your reports should be comprehensive and should convey all the important information in one glance.
Manually creating such reports is a challenging task, where software helps the most. It comes with in-built templates and visualizations that you can choose to build different kinds of financial reports that can help you understand your financial health and make informed predictions for the future. Further, you can automate the process of report generation to save even more time and effort.
Accounting software is proving to be extremely beneficial, especially for business owners who used to spend a lot of their time immersed in physical receipts, financial documents, and bookkeeping tasks.
By using the power of cloud computing and automation, accounting software has proven to be a much-needed tool for any forward-looking business in 2021. If you, too, are struggling with managing your accounts and are dealing with its tax implications or cash flow problems, accounting software is precisely what you need to streamline those operations!