1. You're Not Good at Math

Not every business owner is good at crunching numbers. After all, you probably got into the entrepreneurial world because you enjoy providing your goods or services — and not because you're an accounting whiz.

But if you have trouble with the math and detail work necessary to balance columns, track expenses, reconcile bank statements, and record accurate transactions, you'll waste precious time chasing down errors. If math is just not your forte, accounting software takes the work out of it. The software does the math, so all you need to do is enter key pieces of information. 

2. The Business Needs to Forecast

A business that relies on physical papers and ledgers is somewhat hamstrung when it comes to doing the higher-level reporting it needs. You can record transactions in various ledgers, but it's very hard to use those transactions to create reports.

To find out what invoices you owe and when they're due when using paper ledgers, you'll need to consult the individual transactions themselves. On the other hand, software can compile the individual pieces of data into a convenient report of your obligations — a report you can sort any way you need. 

3. You're Doing Redundant Entry

Bookkeeping can be very time-consuming even when using the latest technology. Businesses that still use pen and paper are likely doing quite a bit of extra work.

For instance, you may find yourself entering expenses into the appropriate expense account ledger as well as the general ledger, and then manually accounting for it on the bank statement. If you enter this cost into software, though, you would enter the numbers once and watch them flow into the general ledger and into the bank reconciliation module for automatic reconciliation later.  

4. Tax Preparation Is Costly

A business that uses accounting software properly throughout the year should experience a relatively simple tax preparation appointment. For many small businesses, this process can be as easy as presenting the accountant with financial statements and a general ledger report, which the accountant uses to enter high-level data into income tax forms. 

Conversely, if you present your preparer with a pile of receipts, handwritten notes or ledgers, and explanations of various unusual entries, they will spend much more time than necessary preparing your taxes. This costs you money and opens up your business to audit risks. 

5. You Need Mobile Access

The 21st-century office is often a mobile one. Small business owners wear many hats and need access to their information wherever they may be. Fortunately, modern bookkeeping technology provides many options — ranging from mobile apps to cloud storage to direct remote accountant access.

But if your documents are all on papers in the main office, you won't be as efficient or as responsive as you can be. You may be missing out on options like mobile invoicing, entering transactions from your phone, sending mobile or text reminders, and downloading transactions from your bank's portal. The more you take advantage of these choices, the less time you'll waste on the books. 

Can your small business benefit from help in any of these areas? If so, start by consulting the accounting pros at Bliss & Skeen. Our accounting and bookkeeping team can help you find the right software, learn how to use it, and keep up with everything that accounting technology has to offer. Make an appointment today.