Unexpected Capabilities. Unmatched Service.
accounting automation software

Accounting Automation: 5 Types of Software to Make Small Business Finances Easier

For small businesses with only a few employees, hours are a precious commodity. And if essential personnel are using those hours on aspects of the job that they’re not proficient in — as is often the case when it comes to accounting tasks — they’re not making the most out of their time.

Enter accounting automation software. Automation has revolutionized traditional practices in accounting. Gone are the days of manually entering data and crunching numbers for hours on end. Instead, innovative software solutions have emerged to automate various aspects of financial management. This saves time, but it also has the benefit of reducing the risk of human error.

Read on as we explore five types of accounting automation software that can make small business finances easier, revolutionizing the way you manage your accounts.

1. Bookkeeping Software

Bookkeeping is the bedrock of sound financial management for any business. Bookkeeping software simplifies the process.

Bookkeeping software automates tasks such as recording transactions, categorizing expenses and generating financial reports. Prominent brands in this category include QuickBooks, Xero and FreshBooks.

  • QuickBooks, for instance, offers a user-friendly interface suitable for businesses of all sizes.
  • Xero is known for its cloud-based platform that enables real-time collaboration with accountants and team members.
  • FreshBooks is popular among freelancers and service-based businesses for its invoicing and time-tracking features.

2. Expense Management Software

Tracking expenses can be a tedious, time-consuming task, particularly for businesses with multiple employees and departments. Expense management software automates this process by allowing users to capture receipts, categorize expenses and generate expense reports effortlessly. Examples of leading expense management tools include Expensify, Zoho Expense and BILL Spend & Expense.

  • Expensify, with its intuitive mobile app and automated receipt scanning, is favored by businesses with employees who frequently incur expenses while traveling.
  • Zoho Expense integrates seamlessly with other Zoho products, providing a comprehensive suite of business solutions.
  • BILL Spend & Expense is an all-in-one expense management solution that provides fully automated expense reports, fast reconciliation and integrations with many popular accounting software programs.

3. Invoicing Software

Sending invoices and tracking payments are essential tasks that help ensure steady cash flow. Invoicing software streamlines this process by automating invoice generation, sending reminders for overdue payments and providing insights into your billing cycle. Popular invoicing solutions include Wave, Zoho Invoice and FreshBooks.

  • Wave stands out for its free invoicing and accounting tools, making it an attractive option for freelancers and small businesses on a tight budget.
  • Zoho Invoice offers customizable invoice templates and integrates seamlessly with payment gateways, facilitating swift transactions.
  • FreshBooks simplifies invoicing with recurring billing options and late payment reminders, helping businesses maintain healthy cash flow.

4. Payroll Software

Managing payroll involves intricate calculations and strict compliance with tax regulations, making it a complex and time-sensitive task. Payroll software automates payroll processing, including calculating wages, withholding taxes and generating pay stubs. Leading payroll solutions include Gusto, ADP and Onpay.

  • Gusto is lauded for its user-friendly interface and comprehensive payroll features, including automatic tax filing and employee benefits administration.
  • ADP caters to businesses of all sizes with its scalable payroll solutions and robust compliance capabilities.
  • Onpay offers a flexible and easy-to-use payroll platform, with features tailored to the specific needs of small businesses, ensuring accuracy and compliance with ever-changing regulations.

5. Financial Reporting Software

Analyzing financial data is crucial for making informed business decisions and planning for the future. For small businesses, affordable and user-friendly financial reporting software is essential. Some suitable options include QuickBooks Advanced Reporting, Sage Business Cloud Accounting and Zoho Analytics.

  • QuickBooks Advanced Reporting provides customizable financial reports tailored to the specific needs of your business, helping you track performance metrics and identify areas for improvement.
  • Sage Business Cloud Accounting offers comprehensive financial reporting capabilities, allowing small business owners to generate detailed reports and gain insights into their financial performance.
  • Zoho Analytics provides advanced analytics capabilities with easy-to-use dashboards and customizable reports, empowering small businesses to make informed decisions based on their financial data.

Accounting Software Can Tackle Some of Your Needs, But …

Automating some of your daily tasks will take a lot of bricks off your shoulders. Just remember: Accounting software can’t take the place of a seasoned professional who can answer questions and develop longer-term financial plans.

McManamon & Co. is an accounting, tax, fraud, forensic and consulting firm that specializes in small and midsize businesses. And our accounting pros will work closely with you to create financial statements, maintain records and provide expert guidance on financial accounting matters. Our team also is well-versed in all small business accounting software, including QuickBooks and Sage, and we utilize the latest paperless technology capabilities and practices. If needed, we can also train your accounting staff in accounting best practices and the implementation and utilization of accounting software programs.

Want to learn more about how to save time on your accounting tasks? Call McManamon at 440.892.8900 or contact us online today!

Tags:  , , , , | Posted in accounting, McManamon & Co.