Small business owners in Pakistan wear several hats at a time. Their tasks range from hiring employees to promoting their brands to managing their financial records. But somehow they fail to manage their accounts manually as errors are quite common plus there is no data security and above all it is extremely time consuming. For this reason, many SME owners are switching to automated accounting systems that manage general ledgers along with accounts payable and receivable and give a clear picture of the financial standing of the company.
So, in this post, we will discuss the ways in which accounting software are helping small to medium sized businesses in Pakistan.
1. Real-Time Business Analytics
If you’re a small business owner, you must be aware of the importance of knowing your numbers. Accounting software these days offer online services that allow you to catch real-time analytics of your business. This gives you an instant insight of your business finances showing where your business stands in terms of profit and loss. Thus, this automated and real-time report helps business owners in making favorable business decisions.
2. Data Security
If you’re a business owner, you know how devastating it could be to lose your important financial records. Yet, its not rare that people lose their important stuff due to natural disasters, catastrophes, or hardware breakdown. These failures not only cost you financially but also affect your business cycle through invoices and payment suspensions. However, even in this situation an accounting software doesn’t give up and steadily protects your invaluable data from any kind of mishap by backing it up and storing it in the clouds.
3. Availability of Financial Evidences
As a business owner, you might be used to of getting inquires from the FBR (Federal Board of Revenue); for instance: “Kindly provide us a copy of your tax returns for the preceding ten years”. This could be a nightmare if you’re working manually but not a big deal if you’re using an accounting software since it holds complete financial records of your business and provide them whenever needed.
4. Better Cash-Flow Management
The success of a business is pretty much reliant on the proper management of its cash-flow. Accounting software facilitates SME owners by giving them full control over their business in terms of their financial capabilities and helps them in taking decisions that do not deter their business accomplishments.
5. Cost-Effective Systems
One of the most common reasons behind the acceptance of accounting software by businesses in Pakistan is data security. With cloud-based versions commonly available, your data is fully secured plus the expense is low. Most of the Cloud apps charge on subscription basis where the business owner has to pay only when he is using it. Other than that you can access all the updates automatically devoid of any additional charges making it highly cost-effective.
6. Easy Access
Accounting software these days offer cloud based versions that allow you to access your ledgers online wherever and whenever you want. With every essential thing easily accessible at a single place for operating their business, SME owners feel extremely facilitated. Their books showing instant view of their business’s financial position are on their finger tips. They are free to access their ledgers and accounts through their smart phones and any other mobile devices. They can even generate invoices, balance sheets, view GST reports, send quotations and keep a close eye on their profit and loss statements.
7.Better Alternative to Accountants
Formerly, the expenditure of appointing a professional accountant was indispensable for any business operation. Knowing their significance, these professionals used to charge too much on minutes, hours or monthly basis putting a considerable burden on the business revenue. On the other hand, accounting software offers a wide variety of services like inventory management, attendance, invoicing, payroll, CRM, billing and time sheet etc. within your means.
8. Improved Tax Management
Small business owners who use accounting software for bookkeeping are always prepared for taxation documents and submissions. Taxes are pricey and tiresome. Nonetheless assume if an accounting software charges you more or less Rs.15,000 monthly, it is still economical than a professional accountant who charges almost 5000 per hour and spend nearly 45 hours annually on the preparation of taxes. Henceforth, a good accounting software will save you approximately Rs.45,000 each year and provide you with more reliable, automated and error-free taxation documents.
9. User Friendly Interface
The best thing about switching to an accounting software is that you don’t need an accountant anymore. The interface is user friendly and majority of the tasks are performed automatically. All you have to do is enter your data and you’re good to go! Moreover, data maintenance is also very simple and doesn’t require too much of your time or energy.
So as a matter of fact, small business owners are essentially benefiting from accounting software as they watch over all of their business accounting needs. These software have turned business accounting hassle -free, systematized and secure, allowing business owners to work only on one thing and that is making their businesses successful.