It doesn’t matter if it’s a newly set up small business, or a multi billion dollar company, accounting systems are much more than a convenience, it is vital for any organisation, no matter what the size. Without proper business accounting systems, organisations can find themselves unable to meet compulsory legal issues. Also, it can even help avoid potential financial fraud, of the kind of the Olympus scandal in 2011.
Even more than the big corporations which can afford huge accounting systems looked after by a team of internal accountants, it is the smaller company that needs a simple and effective accounting system. Since many small companies (the likes of which include contractors and tradesmen) are too small to pay for a full time accountant, they depend much more on their business accounting software than the big boys do. As there are so many businesses that fall into this bracket, accounting software for the small business as grown into an industry ofit’s own,
Firstly, what is there to know about accounting systems aimed at small business? Obviously, small business accounting software is software aimed at providing accounting function to the small business.
You do not need to have specialist financial training or a huge understanding of accounting to use it. As small businesses have their own requirements, specific tax structures and calculations and other specific needs, the software is specially designed to meet these needs.
It combines this specific toolset into a simple package that could be used by anybody. It’s available whenever the tradesman or entrepreneur finds time to do it, which may be outside of the normal business hours of accountants and avoids the needs to hire an expensive accountant to look after their books. Previously accounting software for small business was not as popular as small companies were not as structured as they are today.
However, times have changed and small companies currently make up more than 25 percent of all companies in the USA. With this leap in company numbers and startups becoming more and more popular, both the creation and distribution of accounting software for small businesses has become a logical place for software manufacturers to concentrate their efforts as it’s becoming more and more profitable.
Software authors that have seen a need for specialist accounting software for small businesses include the likes of Microsoft and Sage. It’s even possible that a new computer purchase might come with an accounting software package pre installed. There are also a large amount of systems that are available in the shareware and freeware space, and some companies even offer accounting software on demand through a cloud based system. The choices for small businesses to use an accounting system are now myriad and low cost, so if you’re not already using one to keep an eye
This includes even big players like Microsoft who have identified this business need and have special small business accounting software packages. Moreover every time you buy a premium laptop or computer, you will in all possibility get a bundled software package that includes some sort of small business accounting software. Sites like download.com offer a number of small business accounting software, some of which at no additional cost. So, if you haven’t yet already started using it, surely it is about time you did!
Jim Seward writes about business accounting software and other business related software systems