Hardly any entrepreneur is happy with it: accounting. Nevertheless, it is important to set up a good administration and it is also useful to have some basic knowledge of accounting. Keeping records is a legal requirement, so whether you like it or not, bookkeeping is a must as an entrepreneur. The right accounting software can help you make this (ever) recurring entrepreneurial task easier. Of course, as an entrepreneur, you want your company to be (or become) profitable so that you have an income to live on and do fun things. And maybe you want to invest further in your company. An online accounting package not only ensures that you meet the obligation to keep records but can also help you further. That is if you use your accounting package as a tool to gain insight into the figures of your company and to steer your company.
The benefits of accounting software as an entrepreneur
Every accounting package has different functionalities, but for most packages, they make the administrative work easier for you. You can of course also keep an administration in Excel or even offline, but using an accounting program has many advantages. The advantages at a glance:
Automatic calculations make it easier
An accounting program ensures that necessary calculations are done automatically. For example, if you have entered all purchases and sales, an accounting program automatically calculates the sales tax that you have to pay (or get back) over a month, quarter, or year. This saves a lot of (calculating) time, prevents errors, and it ensures ease of use.
Accounting software provides speed
Self-employed persons and SMEs benefit from speed in invoicing and, for example, time registration. There are accounting packages that automatically prepare invoices for you and in which you can easily keep track of your hours. This ensures that you spend as little time as possible on the so-called “administrative hassle” that you as an entrepreneur usually do not want.
A quick insight into the figures of your company
If you have entered your purchases and sales, credits and depreciation, you usually no longer have to worry about drawing up the profit and loss account or the balance sheet. The accounting package also directly calculates how much money is currently in your company (liquidity forecast). This is all automatic and you, therefore, have insight into the financial health of your company at a glance. This also makes you more professional as an entrepreneur, because you can calculate, for example, whether your hourly rate or sales price is sufficient. Or maybe you need to adjust your expenses a bit?
Overview in the administration
Many accounting packages also provide overviews and graphs from the data you enter. For example, you can see the status of (the course of) expenses (costs), profit, turnover, etc. You can also see, for example, which VAT returns you have already made, or which invoices you have sent, and what is still to be done. has to happen. Because everything is clearly arranged, you will not forget anything quickly and your administration is in order. Tip: make sure you also scan your receipts and invoices so that you have everything digitally. There are special apps available for this.
New tax rules are processed in a package with updates
With an accounting package, you don’t have to worry about new tax rules and how to apply them. For example, if the high VAT rate is adjusted to a higher or lower percentage, the supplier usually provides an update of the package. Then you don’t have to worry about it anymore. Many packages also automatically back up your data. Incidentally, it is still advisable to make backups yourself, because as an entrepreneur you remain ultimately responsible for the tax authorities. If you are interested come and visit this site
Always access because your administration is online
The advantage of an online accounting package is that you can update or view your administration anywhere. And the same goes for your bookkeeper/accountant when you give him or her access. This makes communication and collaboration with your accountant faster and easier. You can also discuss matters with your accountant by telephone or online. For example, you can enter the purchase and sales invoices yourself and ask the bookkeeper to check your entries and – if necessary – adjust them.
Online accounting program: filing returns faster
Reporting to the Tax Authorities can only be done online (or electronically, as the Tax Authorities call it). That is why it is useful to be able to send your tax return to the Tax Authorities from your accounting package with 1 press of a button. Retyping Excel sheets (or paper) of course takes more time and therefore it is also more error-prone. If you have to file a VAT return 4 times a year and 1 time a year for income tax, it is a great advantage if your returns can be done almost completely automatically.