Not surprisingly, poor accounting and bookkepping is one of the most common reasons why small businesses fail. When a business owner is busy performing the countless number of tasks that go into his or her day-to-day operations, they may overlook the importance of keeping good financial records. It’s not until tax time rolls around the following April when they realize just how important keeping records really is.
Thankfully, you can facilitate the otherwise difficult and tedious task of keeping financial records by choosing the right accounting software. But not all accounting software is the same. To ensure you choose the right type, you’ll want to avoid making the following mistakes.
No Automated Backups
As the saying goes, “hope for the best but prepare for the worst” holds true when speaking of small business accounting. Hopefully, nothing will happen to your financial records, but if disaster strikes you’ll need a backup copy on hand to restore the lost data. This is why it’s a good idea to choose accounting software with an automated backup feature. Granted, you can always create manual backups of your financial transactions and data, but opting for an automated backup feature will save you time and energy.
How frequently is the accounting software updated? One of the great things about Quickbooks is the fact that it’s updated on a regular basis, with developers patching bugs while implementing new features. Accounting software that’s updated less frequently is more prone to bugs and errors, as well as security vulnerabilities. And given the fact that accounting software contains sensitive financial data like bank accounts and customer invoices, you’ll want to ensure it’s protected from such vulnerabilities.
Lack of Security
If there’s one element that shouldn’t be overlooked when choosing accounting software for a small business, it’s security. Hacking and other cyber attacks have become all too common in today’s world, with nearly half of all businesses reporting some type of security breach within the past year. Good accounting software, however, should come with several built-in safeguards to protect your data from unauthorized use or access.
What kind of customization options does the accounting software offer? Quickbooks, for instance, allows its users to customize nearly every form, including invoices. So instead of sending a generic invoice, you can send customers and clients a fully customized invoice containing your company’s name, logo and other brandable elements.