Failure is a sad reality for many SMBs across the globe. Around 90% of startups are known to fail. The reasons for these failures are plenty, but this doesn’t change the fact that the rate of failure is indeed really high. And this is also true for the UK.
Among all the reasons for failure, there is not a lot that you can control. Even if you get all the things right, you still are at a chance of failing because of these uncontrollable variables. That is the unfortunate harsh reality for SMBs and SMB owners.
But one thing that can be controlled and that directly impacts the success of your business is the financial aspect of it. One of those areas of your business operations can make or break things for you. Apart from being so important, it is also slightly complicated, especially for beginners. Plus, most entrepreneurs are not ‘finance experts’, so they need to learn and manage that on the go.
This approach leaves room for lots of vulnerabilities and financial crises. Accounting software comes as a saviour in such situations to resolve financial crises and prevent them from happening. Let’s look at some financial issues that can lead to crisis and how the UK accounting software can safeguard you from the said issues:
The problem of file storage and document organisation
Physical storage and organisation of financial documents is a big no-no. With that approach, accountants often struggle to find the right documents when needed which can cause issues in the future. Since, as your business scales and documents increase, this problem will keep getting more mammoth.
What is the solution for this? Using a cloud-based UK accounting software. That way, you can store all of your documents on the cloud and access them on the go. Plus, the documents will be properly sorted and stored for quick access.
The problem of error-free accounting
Manual accounting means dealing with many possible errors, which translates to a lot of time wastage for your team and your business. The UK accounting software takes this mundane task away from you and does it.
Your job is reduced to just ensuring that correct data is uploaded to the accounting software, and it will manage the rest of it! Doing so will help safeguard you from potential financial crises that could have come due to some accounting inaccuracy.
Cash flow conundrums
Cash flow problems are any business’ worst nightmare. With improper cash flow, all of the projections and estimates go out the window, which can directly affect business decision making and impact revenue generation in the long run.
The UK accounting software easily integrates with your ERP, too, taking your accounting to the next level. The business intelligence features are combined with the finance features to give you a holistic understanding of your business’s cash flows. Backed by analytics, this approach ensures your business decisions are on point and well thought out.
Problem with managing bookkeeping
Keeping books up to date is a hassle, and however, improper or inaccurate bookkeeping is a dangerous endeavour. Failing to keep your books up to date is not an option if you wish to save your business from potential financial losses.
A business owner wears many hats throughout the day, but luckily, they no longer need to be the company’s bookkeeper. The UK accounting software manages the bookkeeping for your business and keeps your records up to date in real-time.
Difficulty in keeping up with tax laws and related changes
Staying up to date with tax law changes is a major challenge for many business owners. This has only gotten more difficult in the last couple of years. In January 2021, the president of the National Conference of CPA Practitioners mentioned that practitioners are required by law to absorb some 6,000 pages of new provisions in the Consolidated Appropriations Act, also called the COVID stimulus. This includes many changes that accounting teams need to stay updated with. Failing to do that can make the entire business liable for penalties and fines.
Accounting software is the perfect tool to safeguard your business from tax issues or crises. Plus, the tool works in an automated manner and updates you with all the relevant tax changes or updates and modifies its calculations accordingly. Essentially, the UK accounting software keeps you out of all the heavyweight work related to tax calculations and more, giving you a lot more time to focus on important tasks!
In conclusion, the UK accounting Software is the need of the hour for businesses in the UK. With so many tools available today, it gets difficult to find the right one. We’ll make it easy for you – check out Dext to get all the essential features with your UK accounting software and a lot more: https://dext.com/uk