Save On Personnel ExpensesThe obvious benefit of small business accounting software is the personnel resources it saves. But these benefits work in two ways: first, companies save by not having to hire personnel, reducing overhead. But even when you choose to manage financial and accounting matters on your own, the tasks still take time. Time and manpower are crucial for young, lean businesses. When you choose to handle financial matters on your own, it can have negative consequences in other areas of the operation.
The solution lies in using software specific to managing small business finances. Accounting software solutions are designed to provide the full spectrum of accounting services small businesses need. More importantly, these tools allow for accounting processes to be taken care of quickly, and in some cases automatically, without any personnel required.
Tracking Payables, Receivables, and DelinquenciesManaging invoices and receivables is critical for any business. If you aren't keeping track of the bills you are owed, you're losing money. Once again, this is where automated accounting software can pay off. If you choose a solution that offers online payment management, you can set up the software to receive payments on invoices from your clientele, Business2Community notes.
One of the most helpful features of accounting programs is the automatic updates to the status of outstanding invoices. When you pull up the software to check on your outstanding invoices, everything you need is readily available.
The Big Decision: When to Hire a CFOWhile software solutions are a great way to save money on financial personnel, particularly in the early stages of a small business, any significant growth will inevitably mean you need to hire a chief financial officer.
There are a few internal indications that it might be time to hire a CFO, notes Forbes. If big financial decisions need to be made, and the company lacks a professional to offer information, insight and guidance on these matters, it might be time to hire. Depending on your industry, a CFO may also be instrumental in a variety of key growth areas, such as acquiring additional capital, managing government regulations and tax implications, and taking care of control cost measures, particularly as costs and financial matters change and grow more complex.
The good news is, when the time comes to make such a hire, you'll have the financial resources to facilitate such a move. And you can thank your accounting software for helping you reach this point.