Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
Initially, you don't need to use accounting software for your e-commerce business. However, you'll eventually need it. Whether you like it or not, you will have to face and consider the help of technology when it comes to modern-day financial management. Why, you ask?
Once your business begins to experience growth, business data will keep increasing. Of course, this is good news; however, if you consider financial management, you could be more susceptible to stress and errors if you push the manual agenda. At the same time, being unfamiliar with business accounting software can add fire to the flame. This is especially true if you have technology anxiety, an unfavorable response or feeling toward using digital tools. We understand your concern since technology isn't perfect, after all.
Running a business is hard enough, but it can be downright overwhelming when you add in the stress of learning complicated software. So if you're an e-commerce seller feeling anxious about using accounting software, don't worry—you're not alone! This post will explain everything about accounting software and what they provide to help you feel more confident in using one and succeed in your growing business.
Eliminating the Stress and Anxiety of the Digital Age: How an Accounting Software Helps You With Financial Management
Over time, you might find too much financial data for you to handle, or you need faster access to them. You might also find yourself spending most of your time working on repetitive, manual tasks and having less for other important business aspects. Moreover, you might not have enough financial literacy for bookkeeping and accounting, making you prone to more errors.
The key to minimizing the risks is to understand the role of technology in the first place. Then, determine what it does and doesn't help you with. This way, you'll be able to use it to your full advantage and not add more fire to the flame. Here are seven comparisons between what accounting software can and cannot provide.
What It Does
Here's a list of what software can help you with. You can completely rely on the system to work on the following tasks:
Work and Deliver a Larger Amount of Data
Business accounting software programs make scalable amounts of data possible within the same timeframe. Thanks to their automation feature and cloud storage, you can work and access higher volumes of financial data without risking your health and time.
Help Bookkeeping and Accounting Teams
Accounting software can help with the work of bookkeeping and accounting teams. Even experts sometimes make mistakes (albeit fewer), and technology provides less room for human error. If you ask an expert for an accounting solution, they will most likely recommend digital tools to manage your finances. One example is providing secure access to company data so that it's easier for team members to access their tasks. Then, they can complete these tasks without waiting on others, which may lead to delays.
Take Care of Repetitive Tasks
Accounting software can take care of repetitive tasks for which you and your team might not have enough time. This is especially true if the task requires close attention to detail. For example, data entry and tax calculations are perfect for an accounting software's capabilities. Consequently, you can focus on other tasks that matter to your business.
Generate Reports in Seconds
Picture yourself getting a copy of financial reports (that usually take hours to create manually) in just a few seconds or minutes—that's how useful accounting software is. You can generate detailed and summarized reports in a matter of seconds with accounting technology. Data is extracted from the database, formatting it into a report with business insights. Don't worry about customization; most accounting software allows you to modify the templates.
What It Doesn't
Here's a list of accounting software limitations to ease your worries further. This will help you understand which areas you or your accounting team should spend more time on and minimize errors.
Eliminate Human Error
Technology helps minimize human error, but it cannot eliminate it. Therefore, you may still be at risk of financial management issues, especially if your team isn't doing well with digital tools. So before you start using a digital accounting system, ensure that everyone understands how to use it first.
Make Learning Easier for You
Accounting technology makes the process faster, easier, and simpler. However, you need to understand its complexity first before obtaining its benefits. Unfortunately, not all software is created equal in this sense. Some might have a steep learning curve that can easily overwhelm users. Seek experts who can help you understand how to use the software while considering your comprehension level.
Specify the Service, Unless You Pay for More
Some software offers a limited set of services, and you have to pay more to obtain advanced accounting features. It can be quite costly in the long run, especially a piece of business accounting software for a small business. So, ensure that the accounting software you're using is worth your investment without the financial hassle.
Use the Best Business Accounting Software for Your E-commerce Business With Unloop
Now that you know the role of accounting software in your e-commerce business, we hope it significantly reduces your technological anxiety. Of course, it won't work like magic and eliminate all possible errors you can make. However, it makes the tasks easier, faster, and more efficient.
Besides, technology isn't exactly foreign to us anymore; it has come a long way, only that it looks and operates differently from the past. Plus, these changes are created for better performance, so take the opportunity, try them out, and see how much it can help your business.
Unloop uses the gold standards of e-commerce accounting software. We exclusively operate using top software like Quickbooks Online and A2X Accounting. If you are using other software and decide to work with us, we can help you migrate to our recommended tools from start to finish (and free of charge!). You can obtain these tools in any package (the Starter Plan, Launch Plan, Grow Plan, and Launch Plan). Take your accounting system on another level today with Unloop!