Ladinez & Company, PC

A Professional Accountancy Corporation 

 

Blog

How To Determine If It’s Time To Buy A Bookkeeping Software?

Are you a small business owner still trying to figure out if you need to purchase an accounting or bookkeeping software now? Do you still believe that such kind of software is for large companies only and all it does is add unnecessary costs to your business? Before you answer that you must evaluate if accounting or bookkeeping software is right for you.

Can you honestly describe how healthy is your business? Can you easily track your cash receipts and disbursements? Is your business running on a profit or a loss? Are you always caught on surprise that you have no more stocks to serve to your customers? Do you find it difficult to monitor your receivables and payables? Is your business running on a negative cash flow or you are already on the verge of insolvency? If you are unsure to answer most of those questions, then there is a high possibility that you are in need of bookkeeping software.

Come tax reporting time, do you give your tax preparer headaches by always having difficulty in gathering info and documents?

Do you spend much time balancing your books and trying to trace where you made a mistake to the point that you neglect the more essential tasks in your business like selling and marketing which are the more profit generating functions in your business?

Those questions above will likely determine if you really need to make a transition from manual bookkeeping to computerized accounting. Most bookkeeping software aids in time saving. With just one entry, records and general ledgers are automatically updated and reports can be generated in real time. A neat and updated report can result in tax savings by avoidance of erroneous recording of income and expenses, and unnecessary filing extension. Customers and vendors ledgers are also automatically updated with fewer errors. It is easier to monitor receivables and payables, thereby, giving you more control of your cash flow.

Bookkeeping software can also make information be easily accessed by multiple users at the same time and even at multiple devices like desktop computers, laptops, and mobile phones.

There are some disadvantages, however, in bookkeeping software. Number one is the price. Bookkeeping software is more expensive compared to manual books of accounts. You may also spend on customer support and maintenance fees. If you have very few transactions, say ten vouchers in a month, bookkeeping software may be more disadvantageous to you. Your business might also have special bookkeeping needs that will make it costlier to purchase the software if there will be too much modifications to tailor fit your business.

If you want to successfully run your business, you must carefully weigh the advantages and disadvantages in your move from manual bookkeeping to bookkeeping software. You can take advantage of free trials in order to see which one is right for you. What is essential is to have a better system running in place and the choice whether it is manual or computerized is entirely based on your careful decision.

- We are CPAs, tax accountants, tax preparers, business managers and consultants based in Torrance, CA near Los Angeles & OC, serving the entire U.S. See us at Yelp & Facebook. Call us (424) 278-4838 or e-mail us at This email address is being protected from spambots. You need JavaScript enabled to view it. .


 

DISCLAIMER

All contents provided on this Ladinez & Company, PC site is for informational purposes only. We make no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. We will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. This terms and conditions are subject to change at anytime with or without notice.

Submit to FacebookSubmit to Google BookmarksSubmit to TwitterSubmit to LinkedIn