Your small business can grow large with the help of a good inventory and accounting package.
Using this software, you can increase your profits while at the same time reducing the amount of time you spend on accounting and related tasks.
- Systematized data storage.
These software packages teach you to store data in a systematic way for quick and easy retrieval. Available packages range from software that you install into your computer from CD and online services.
Most are available on the Internet and are very easy to learn and use.
- Financial data available at your fingertips.
The biggest advantage of any accounting software package is that it allows you to check your inventory position and your daily, weekly, monthly, or annual sales and purchases with the click of a mouse.
At the same time, it will also give you comparisons of all your financial information, which is vital to running a small business successfully. It can quickly give you a clear picture of the direction your business is moving in.
You can even track slow-moving items in your inventory and dispose of them quickly, so the money invested in them can be used in other areas of your small business.
- Faster, more precise invoicing.
These packages have modules that enable you to prepare invoices for your customers more quickly and efficiently. Any discounted rates and applicable taxes are calculated by the software.
The software can also remember the individual cost of each item supplied to any particular customer on their last invoice – so that you can get a quick picture of your clients’ purchasing habits.
Invoices can be custom-made to suit your business and can be easily prepared by your employees.
- Keep track of your receivables.
Your accounting software will keep track of your receivables and is also useful in keeping track of your customers.
You can keep track of overdue payments and remind your customers through payment-reminder letters, which can be generated by the software. This feature helps you improve your cash flow and identify customers that may be high credit risks.
- Faster and more accurate calculation of your taxes.
The software helps you calculate your taxes on a monthly, quarterly or yearly basis. This feature helps you reserve money so that you are not put in a difficult position if you have to pay more taxes than you originally anticipated.
You can also compare this year’s tax figures with your previous year’s figures to get an accurate idea of the difference in your yearly tax amounts. If they are going up, you can be proactive and look for ways to control the increase.
- Use of mailing lists.
Many software programs have mailing-list capabilities that enable you to print customer labels.
You can use this feature to send out new product information or to invite customers to an event such as an open house. It is not only accurate and convenient, but the labels also look impressive on the envelopes.
A good inventory and accounting package provides you with accurate and timely data at your fingertips to give you full control of your business and your products. You’ll also be able to more accurately track product turnover, your customers, your accounts, taxation, and various other critical information.
Automating your accounting and inventory functions will help you cut costs and maximize your small business profits.
