Bookkeeping Software

Written by Patricia Tunstall
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Bookkeeping software takes the tedium out of accounting. In small, startup businesses, the owner/manager probably does it all--marketing, advertising, sales, and keeping the books. Few small businesses make enough profit to keep an accountant on the payroll, so an accountant may be given receipts and other financial records to complete annual taxes.

As a business grows, it reaches a point at which the owner must hire one or two employees, and must hire an accountant to take care of important paperwork. Before this point is reached, however, an owner may bridge the gap between doing everything and hiring part- or full-time people. Bookkeeping software may delay hiring employees if the owner just knows how to use a computer.

Saving Money on Payroll

The longer a new business person can perform all necessary functions in the enterprise, the more profit accrues to the business. Payroll is a large expense in any organization, and even hiring one person to keep the books may seriously impinge on the amount of profit the owner can realize. Doing it all consumes all the owner's time in the startup phase, but it is what enables the small business to stay afloat until breakeven or a small profit materializes.

This in-between phase is an awkward part of the process of a growing business. An owner may not be sure about the timing of hiring employees. The problem is, the pressures mount as the owner has no time off and is overwhelmed by work. Software can ease the burden of keeping the financial books.

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