Would Digital Accounting suit my business?

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Digital Accounting software can help streamline tasks and assists you in staying on top of your business’ finances, reducing the need for many manual processes.

Is Digital Accounting Software right for my business?

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Is Digital Accounting software right for your business?

Every business needs to manage the flow of money, balance its books and ensure the right tax is paid.

Digital Accounting software can help you stay on top of your finances by storing your data in one location.

It also automates many of your manual tasks, such as generating payslips and taking care of deductions like maternity, paternity and sick pay.

Here are some of the features that Digital Accounting software has to offer...

Invoicing and credit control

This function helps you by raising invoices automatically, keeps track of when payments are due, and makes forecasting your income easier.

It’s great if:

  • you provide a service, and don’t take payment before delivery
  • you have multiple customers and payments to track
  • or you spend a lot of time chasing outstanding invoices and late payments.

However, it might be less relevant to you if:

  • you take payment at point of sale
  • or you mostly sell through online marketplaces, where invoices are automatically generated for you.

Report generation

Digital Accounting software can give you access to your key sales data. This function allows you to generate reports, giving you an instant overview of your financial health – without needing to contact your accountant. 

It’s great if:

  • you have a high volume of sales
  • you want to track and benefit from insight on monthly or yearly finance trends
  • or you need to keep a close eye on your cashflow. 

Payroll

A functionality of Digital Accounting software is running payroll – generating payslips and taking care of statutory contributions. It’s great if:

  • you employ staff via PAYE
  • or you manage statutory contributions like sick pay, maternity leave, or pensions

However, it might be less relevant for you, if:

  • your staff are not paid via PAYE - for example, if you employ staff to work on a specific project, rather than provide on-going support to your business
  • or you only have director-employees, in which case this function is unlikely to deliver a return on your investment.

Tax liabilities

Digital Accounting software can simplify and improve your experience in managing and filing your tax accounts. It’s great if:

  • you want to ensure you pay the right tax - by digitalising processes that were previously done manually and reducing scope for errors
  • you want to be able to manage your tax affairs seamlessly, without using paper
  • or you want to easily track and view your company's tax liabilities.

However, it might be less relevant to you, if:

  • you aren’t VAT registered.

Cloud functionality

Most Digital Accounting software runs on the Cloud – rather than being stored on your computer.

It’s great if:

  • you want to keep your data safe, secure and retrievable
  • you work remotely or from many different locations
  • or you don’t want to deal with manual updates and backups.

However, it might be less relevant to you, if:

  • you don’t have a stable internet connection. For example, if it takes a long time to load web pages, your Cloud-based software might struggle, too.

Next steps

These are just some of the features to consider when choosing Digital Accounting software.

Our 6-step adoption guide has a helpful checklist to see whether Digital Accounting – or another software – is the right choice for you.

Explore Help to Grow: Digital to find out more, including how to access a discount of up to £5,000 to purchase approved Digital Accounting software.

We’ve covered the basics in our article, Introduction to CRM software. Digital Accounting software automates routine accountancy tasks to help save time and improve efficiency. By reducing, or in some cases removing, the burden of manual tasks, you and your team can free up more time to focus on other areas of your business, or even give yourself some time back during the evening or weekends. Here, we look at how Digital Accounting software might help you, so you can decide if your business will benefit from adopting it.

Features of Digital Accounting software

Digital Accounting is fast gaining popularity among many small-to-medium-sized businesses. According to research, 80% of small businesses and 70% of medium-sized businesses now use Digital Accounting software. When exploring the benefits it can bring, it’s easy to see why.

Let’s look at the three main features Digital Accounting software can offer.

Invoicing and credit control

For businesses that don’t take payment at point of sale, Digital Accounting software can reduce manual input and help you save time by automatically raising invoices. It can also help you track and chase overdue payments, which supports a more coherent approach to forecasting income.

Using Digital Accounting software can also give you more control of your accounts payable, helping to make your business healthier and giving you a better overview of your financial position.

Many Digital Accounting software solutions can also help businesses using point of sale, with either inventory management or VAT calculation and submissions.

Report generation

Digital Accounting software provides you with an instant overview of your business’ financial health at any time. It can also help you run reports and file your accounts.

Generating your own reports for your business via Digital Accounting software can help you keep a close eye on your cash flow, giving you a more concise view of money coming in and going out. It can also help you identify trends in lean months.

This function might not be so useful if you have a small number of clients who make fewer transactions. However, if you’re hoping to expand in the future, it’s worth getting the tools in place now to support your business to grow.

Payroll

Aside from helping with basic accountancy tasks, many Digital Accounting products help to streamline payroll and manage staff contributions automatically, including pensions, sick pay and parental leave.

Managing your payroll in-house through Digital Accounting software saves you time and money, and keeps you in control without the need for third-party assistance.

These are just three of the key features of Digital Accounting software. There are many more advantages to adopting it, from helping to reduce your admin load, to giving you clearer insights into your business’ finances.

Next steps

Our 6-step adoption guide provides checklists and guidance for digging deeper into whether Digital Accounting can help you reach your business goals; from identifying your objectives to making new software work for your team.

Help to Grow: Digital guidance

6 steps to choosing software

Digital technologies can help your business grow. Our 6 steps will steer you through the buying process, so you can make the right choice.

How to recognise your business needs

Identifying your business needs is key to understanding how to help it grow. Take our Business Health Check to find out what shape your business is in.

Apply for 50% off business software

Eligible businesses can get 50% off, up to £5,000, on approved Digital Accounting and Customer Relationship Management software.

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