There are plenty of things humans can do better than computers. Play football, for instance. They can create art with real meaning behind it. They can even walk up stairs! There are also just as many cases, though, in which humans fall very short when compared to the precision of computers. When it comes to money, typically the accuracy of computers can’t be beat.
A small percentage of human error will add up greatly over time and can even mean the difference between a successful business and a failed one. A study at the UNLV found that visual data confirmation of data leads to an average of 10.23 errors per 30 data sheets. When this same data was double checked by a computer, the average dropped down to .38 mistakes. When the same data eliminated double entry or data migration (using an integrated system) the mistakes vanished.
With POS systems getting more advanced and accounting software for small business becoming more accessible, it’s easy to get lasting results in your business.
For retail institutions, the POS is the center of the business. For businesses built on sales, the CRM is usually the central focus. In either case, these programs can be used as accounting software for small business when it comes to payroll. Rather than using separate systems to manage employees’ time on the clock, and then still another system to pay them at the end of the month, the best way to eliminate errors and boost efficiency is to use one program to handle all of these functions.
Double data entry and data migration is the best way to create more mistakes- by moving the same information over different platforms, something is bound to get lost in translation. The best way is to use the original data itself from the source that it is being put in the system. Sometimes these options are known collectively as business management software- the key theme is the integration of programs to allow for a more complete picture and to lessen the chances of mistakes.
Eliminate tax mistakes
Tax time in any market is the always a stressful part of year. Whatever the local tax laws are, those businesses and individuals that have remained organized throughout the year have a much easier time not only paying taxes but avoiding fees.
By using the proper POS, the correct sales tax is included and automatically separated from the actual cost of the goods. From there, the tax payments can be shared easily with the accounting platform- again eliminating double data entry and eliminating more human errors.
In addition, having a fully integrated accounting software platform also ensures that there will be a record of all transactions both within the company and externally. In the case of tax rebates and discounts, having this record is crucial to avoid an audit and to maximize potential savings.
Integrate inventory management and ordering
With accounting and business management software, it’s possible to keep track of your inventory and order more right from the same place. Again, this means less double data entry and less potential for mistakes. This in turn means less issues when it comes to running out of product and less mistakes ordering too much of a product that doesn’t sell. It also keeps the books balanced.
On top of that, complete vendor history is built in. Has a particular vendor been slowly but steadily raising prices over the past year? Easily find out and either get them to lower the prices, or find a different vendor. Has a vendor been consistently late on shipments? Find out when and how often.
You can even find the value of your complete inventory in a matter of seconds, as long as everything is being entered within the system.
Keep a complete history of the business
It’s important to keep a detailed business history for more reasons that just being prepared for tax season. It’s almost impossible to keep track of or establish important projections like profit and loss if you don’t have a detailed history of what has happened in your company financially. Utilizing accounting software ensures that all transactions are tracked- this includes purchases within store, client orders, and even inventory orders for business supplies.
Essentially, every monetary transaction is kept track of by the accounting software. It provides a complete, detailed picture of how much money the business is taking in and how much money the business is spending. It can even be broken down by categories like employee hours or product overhead. This detailed picture allows you to see the specific profit or loss that your company is facing on a daily, monthly, or yearly basis.
It’s easy to develop formal financial papers or presentations to show to potential investors or banks if a loan is needed- all of the records and detail will be kept by the software.
On top of that, you can even make realistic projections towards the next calendar year. By keeping this detailed history, accounting software allows businesses to not only know where they are coming from and where they currently stand, but also where they are headed in the future.