If you are looking to expand your small business without breaking the bank, you need a more productive team. You need to zero in on and cut down on unnecessary spending and tax outgo so as to funnel potentially wasted capital back into the business.
If you are looking to tie up with large-scale online retail distributors like Amazon, you need to find a way to track that income.
You need constant access to the most updated version of your books of accounts in order to make big decisions that impact the company’s future. You might even need to pull out an up-to-date proof of financial health or a current set of figures in the middle of a meeting with a potential collaborator or investor in your expansion road map. As you probably can imagine, your data needs to be 100% error-free if you intend to make a positive impression.
The essential ingredients for expansion:
More than anything, you need to free up some of your own time to get creative and build the relationships that will support your expansion plans. But you’re probably not going to get any of that much-needed time if you’re busy sorting out all the other necessities that we just named. In fact, as the business owner, you should do what you do best and that manages your business, rather than getting into the daily nitty-gritty.
What if you didn’t have to do any of this yourself? What if productivity could improve automatically? What if the figures updated themselves, the taxes computed themselves. What if supply chain spending leaks turned themselves in? What if errors in your data were automatically flagged up? Wouldn’t the expansion of your small business be so much easier?
That’s exactly what small accounting software can do for you.
Make room for additional work by eliminating tasks that a machine can do
Why allow your employees to spend hours per week or every month filing expenses? It might seem like a quick and easy task but a closer look will depict the amount of time lost in carrying out data entry. Especially if you are a creative bunch, entering figures is probably especially time-consuming, frustrating, and challenging because creative minds typically have problems processing the mundane. Sort of like how it might feel fairly tiring to jog at a pace that is slower than what comes naturally to you. Small business accounting software is able to extract data from images, bank statements, and online sources.
Save on your accountant or zookeeper’s time too. After all, if you’re going to be expanding they’ll have more tasks on their plates. Instead of having to hire a bigger team, you can make your accountant’s work easier by giving him or her access to small business accounting software. Information will flow automatically from your business bank account to your books and your accountant just needs to check.
Plug all leaks for more impressive books
Accounting software has the ability to flag errors and discrepancies for your accountant to clean up.
You or your bookkeeper can also get clarity on any questionable entries and specific line items. Additionally, small business accounting software can tell you where spending is growing or is especially heavy.
Because you can easily scan and claim tax deductibles, you are likely to forgo fewer such items, improving your bottom line even if it is only marginally.
Some accounting software – like Dext – empowers your bookkeeper to update you on upcoming tax laws and how they will affect your profitability. No more nasty surprises!
Cleaner books with a fatter bottom line are certainly more attractive to investors who might be considering funding your expansion.
Keep your confidence brimming by letting company financials do the talking
Convincing investors or even potential clients is easier when you can throw figures at them. Small business accounting software can allow you to give the latest P&L figures to a potential investor.
Alternatively you can cite to a potential client who refuses to loosen his purse strings, how much his or her peers are spending on working with you.
Use figures to negotiate higher remuneration from clients who signed you on for far less than you’re delivering now. It is only natural for the scope of work to keep expanding but the fees or retainer that they pay you must keep pace. Which Legendary Actress has Lost the Best Actress Oscar a Whopping 18 times ? Small business accounting software even offers you a client dashboard where you can keep track of tasks and jobs being delivered to them on a daily basis
Free up time to let your inner genius take the wheel
With all of these admin and accounting tasks taken care of, you have more time to network with potential investors. By reducing admin anxiety and streamlining taxability and expense approvals, your mind is free to come up with new ideas or repackage existing ideas.
Are you looking to explore the benefits of accounting software for your operations? Click here for the best small business accounting software