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The Value of Key Performance Indicators (KPIs) For Small and Growing Businesses

Posted on by Matt Bernot

What are Key Performance Indicators (KPIs)?

Key performance indicators are a formal way of categorizing, measuring, and analyzing the enormous amount of data that gets generated and flows non-stop through your business, every day, in every department, at all levels. Financial information, customer behavior, employee satisfaction, and asset tracking are some examples of the types of data points that are available for you to monitor.

The purpose of KPI reporting is to track the health of a company. This helps prevent companies from developing blind spots that could hinder company growth. Similar to how the human body consists of dozens of smaller systems working in harmony toward a shared goal, KPI reporting measures individual systems such as customer acquisition cost, net profit margin, cost of goods sold (COGS), etc. to communicate which systems and processes are working well and others that require polishing.

KPI reporting exists to aid businesses, so a crucial question becomes: which KPIs should I track? A broad array of KPIs could be beneficial to a variety of businesses in all industries, so it’s essential to know which ones will be the most beneficial for your business to track. But here are two pieces of good news: businesses of any size don’t have to track every KPI in existence, and the appropriate group of KPIs is determined by the unique nature of the business at hand. If a company were to attempt to track all KPIs, there would be a high chance that the business would be overwhelmed by the volume of information to track, interpret, and remedy. Fortunately, there are different elements to consider and questions to reflect on to ensure the most appropriate KPIs are chosen—the ones that are most closely tied to the success of your business.

How to Choose the Best KPIs for Your Small Business

Goal setting, especially for small and growing businesses, typically predicates success. With fewer than 10 percent of small business owners achieving their yearly goals, it’s essential to take the steps necessary to stand out among the crowd of other businesses that compete with yours in your industry and market. Here are three company pillars to review when choosing small business KPIs:

1. Business Goals

Understanding the current “health” of your company is crucial. The “health” of a business consists of several factors—financial health, process and technology health, and the emotional/physical health of your employees. All of these factors play a key role in the overall success of your business on a long-term time horizon. After evaluating each facet of your company’s health, establishing a vision for sustainable growth can transform into plans of action that lead to attainable goals.

To avoid the disappointment of not achieving a goal, there are four elements to consider when goal planning.

  1. 1. Goals must be measurable. Without objective measurement, companies can become lost in the subjective features of a goal. Subjective interpretation of data might make you feel good, but ultimately will not result in realistic goals.
  1. 2. Goals must be actionable. Brainstorming and idea boards may be helpful tools, but without a call of movement, no momentum will be harnessed by your business in order to move forward.
  1. 3. A time frame should be assigned to every goal. Due dates are not sheer stress inducers; they are also accountability holders. If you don’t assign set time frames for every goal, it becomes easy to push off important tasks and hinder overall growth.
  1. 4. Consider breaking down larger, more challenging goals into small yet manageable milestones that comprise the overall goal. For example, a hearth and fireplace services company may desire to triple their sales this winter relative to last year. . This statement would be the overall goal, but there are many smaller steps that must be taken to achieve the overarching goal. Some examples of smaller milestones would be to:
    • Research and formulate a comprehensive, SEO-oriented strategy
    • Generate a timeline for hiring new (perhaps seasonal) employees
    • Perform research on local competitors 
    • Develop internal documentation focusing on service metrics and ways to improve them

The number of tasks needed to accomplish a 300% YoY sales increase would be longer than this, but these are just some examples of smaller goals that companies can use as proactive steps to achieve bigger, longer term goals. Almost always, it’s the assemblage of several smaller goals being completed that helps a company achieve large goals.

2. Business Stage

It is essential for a company to recognize which unique business stage it is at because it will determine which small business KPIs would be best suited. A new and growing company may want to focus primarily on KPIs related to gross vs. net revenue, whereas a more seasoned small business may want to concentrate on future growth elements such as new customer acquisition cost or branding efforts.

3. Business Model

When evaluating key performance indicators for adoption into your own company, the type of business (and industry) you’re in can determine the most relevant KPIs to monitor. 

Brick-and-mortar service businesses (plumbing, hearth services, HVAC, etc.) will want to know how long the average service call lasts. Labor costs are typically high in service-oriented businesses. Critical KPIs for this business type might be Gross Revenue Per Employee, or Direct Cost of Services Performed, or Inventory Turnover Rate.

Online businesses, including traditional eCommerce sites, will be very interested in website analytics KPIs like these: 

  • How many unique users visit the site every day / week / month?
  • Bounce rate. How many seconds does the average visitor stay on the site?
  • Conversion rate. What percentage of unique visitors buy something?
  • Percentage of visitor shopping carts that are abandoned before checkout?

Whatever business type or industry you’re in, there are KPIs that are directly proportional to the measurement of success.

Small Business KPIs For Every Company To Consider

The dynamic nature of each small business is unique, thus there is no “perfect” list of KPIs a company should track. There are, however, commonly used KPIs among smaller businesses that have proven to be effective. Below are eight widely adopted small business KPIs in today’s business climate.

1. Revenue Growth

This financial KPI informs leadership how a company’s income and sales are increasing. Revenue growth is associated with a set time frame (usually monthly), and the rate (a percentage) can be found with the following formula:

Monthly Growth Rate = (Total Revenue For Current Month – Total Revenue From Previous Month) / Previous Month’s Revenue

Revenue growth will increase, decrease, or plateau. This small business KPI is important because it ultimately reveals whether a company is on the right track for economic growth or if there is a need to course-correct.

2. Customer Acquisition / Retention Cost

Customer acquisition notifies a company how much it costs to acquire a customer. To calculate customer acquisition cost (CAC), the following formula is used:

= (Sales Expense + Marketing Expense) / # of New Customers

On a quarterly review, let’s say your marketing and sales outlay totaled $10,000 and netted 25 new clients, the CAC would be $400. The other side of that coin is customer retention, which reveals how fast a customer decides to stop doing business with your company, aka “churn rate.” Acquisition and retention create a ratio together and can help determine if there is a problem with the sales funnel or a customer support system. 

2a. Customer Lifetime Value (CLV)

Though not a part of the original eight recommendations, a KPI that relates closely to customer retention and acquisition is the lifetime value of a customer. Understanding the CLV of any given customer allows your business to maximize every customer relationship. The following formula, which draws from other important small business KPIs, is used to calculate customer lifetime value:

= Average Order Size x Average Number of Purchases Per Year x Customer Retention Rate

3. Net Profit Margin

Net profit margin refers to how profitable your business is from the revenue it generates. One of the reasons why it is a common small business KPI is because it reflects how well a company is using its revenue. The following formula is used to find the net profit margin:

= Net Profit / Gross Revenue

4. Cost of Goods Sold (COGS)

The cost to deliver a single product or service (that is not connected to payroll) is known as the cost of goods sold (COGS). This small business KPI is critical to track because it allows you to monitor cash flow and bottom-line profitability.

5. Return On Investment (ROI)

To ensure that a company’s financial investments are generating both internal and external growth, the return on investment KPI compares a company’s revenue to the investment costs. Investments take on several forms such as individual marketing campaigns, business management software migration projects, employee education programs, etc. Where a small business tends to focus on customers and internal processes, a bigger enterprise is likely to focus on the entire supply chain.

6. Employee Productivity Investment / Turnover

Hiring and training employees is expensive! Including the employee productivity investment/turnover on a KPI report helps educate companies on how to improve employee satisfaction. If an employee stays at a company for a long time and works efficiently, there is a higher return on investment. It’s important not just to focus on hiring employees, but hiring employees who stick and stay. Improving the retention rate of valuable, skilled employees will improve the overall value of your business. The more you can automate your internal hiring processes, the less you’ll spend on employee acquisition.

7. Web Traffic and Conversion Rates

Incorporating an online presence comes with the responsibility of monitoring the influx or decline of web traffic. This small business KPI finds a company’s conversion rates by comparing the total number of sales to its web traffic.

This part of the KPI report can be impacted by trying new marketing campaigns or changing the design of a website. Does a simpler layout improve the ability to understand the product and find answers? Is a campaign working or does it result in flatline growth?

8. Social Media Engagement and Reach

Let’s face it. Social media is becoming more commercialized with a growing number of businesses—large and small—using social media platforms to increase brand awareness and influence new customers that may not be reached through traditional marketing channels. 

The social media engagement and reach KPI measures how effective a company’s social presence is on different platforms. The importance of staying connected to your customers cannot be overstated.  By tuning into this data, companies may find which social platforms are worth the time and monetary investment, as well as what kind of content their audience responds best to.

Though not an all-inclusive list of relevant KPIs, these small business KPIs and others have proved to be indispensable.

Using KPIs In Your Daily Decision Making

Once you’ve identified those performance metrics that best relate to the success of your business, you’ll want to stay on top of the information in real time. Generating, reviewing, and sharing an increasing number of individual reports can become cumbersome over time. 

Instead, consider business management software that allows you to customize a KPI dashboard. A KPI dashboard processes the raw data and presents a visual, at-a-glance layout of meaningful charts, graphs, facts, and figures that allow you to make more data-driven decisions and fewer gut-driven reactions in response to incomplete information.

Small Business KPIs Are Crucial To Success

An effective KPI report for small businesses will be action-driven, measured with accuracy, timely, and help you achieve your company goals. With the help of an all-in-one business software platform, KPI reporting for small businesses becomes an invaluable tool for any business to drill down and bring into focus the most meaningful success metrics, easy to interpret and communicate to others for the good of a company’s long-term health and prosperity.

Top Software Features to Manage Your Small Business

Posted on by John Fay

It’s no secret our post-COVID economy is troubled, and this growing uncertainty in the marketplace may feel like huge dark waves threatening to overtake the ship of your small business. Fortunately, there is a light in the dark: a rich array of business management software platforms designed to help you organize every facet of your small business, filled with advanced productivity features designed to herd the many cats that make up your business. But which software to pick?

Any business management software has a dizzying host of capabilities such as finance management, scheduling tools, remote work solutions, and a sweep of data analytics to assist your daily decision-making process. However, only the best business software can synergize and optimize its features into something you and your employees can work with day in and day out. We’ll take a quick glance at some of these features to explain why your business needs them. 

Small Business Management Software Features To Look For

Money, Money, Money

Business revenue, expenses, and cash flow need continuous oversight, and you need software tools that have your back in those areas. To date, the majority of small businesses still trust their accounting to Intuit’s QuickBooks accounting software. It’s no secret that QuickBooks enjoys the lion’s share of the accounting software market among small businesses across all industries. As a result of that dominance, the evolution of Intuit’s software development has become “one size fits most,” which means you must adjust your accounting processes—and reporting requirements—to fit their framework, regardless of your own business’ growth requirements.

Now, a thought about cash flow. No matter the size of your business, or which accounting software you employ, EVERY business will benefit from a speedier collection of its receivables. (Thank you, Captain Obvious!) One of the best tools out there is a customer payment portal. Think of this as an immediate, 24/7 window into your system that’s available anywhere, on any device. This level of accessibility makes it more timely for customers to receive, approve, and pay invoices.

Custom(er) Relationship Management

Customers are the lifeblood of any business, and you naturally want to keep the client-facing side of your business organized and professional. Customer Relationship Management software is more than just a spreadsheet database of your customers. Today’s CRM is the cornerstone of integrated business management software that allows you to make more informed decisions throughout the entire lead generation, sales, and customer retention pipeline.

Look for services that help streamline quoting and billing to better facilitate the customer’s and/or vendor’s experience with your company. By connecting sales and accounting data, you’ll streamline your back-end processes and get all team members on the same page. Utilize sales marketing tools like automated email workflows to create opportunities and increase your response rate.

A Better Customer Experience

I don’t know about you, but I’ve come to have low expectations of today’s customer service experience. So many large businesses have outsourced their customer service overseas. Credit cards, telecomm, broadband providers—it’s a big list. I have learned to expect long wait times, sub-par language skills, and infuriating dropped calls. Lackluster customer service has become the “new normal.”

It’s said there are only two things that employees may be struggling with: (#1) change, and (#2) the way things are. So, once you’ve resolved that your business will benefit from business management software, please exercise your due diligence with respect to the total cost of the solution. Perhaps you’ll find (as I did) that many ERP software vendors charge an additional fee for implementation. Many have a separate fee structure for subsequent support. Some, like NetSuite, Microsoft, and Salesforce, have outsourced implementation and support to independent, 3rd-party implementation specialists. Do you see a pattern here?

All Together, Now

Finally, and most importantly, you’ll want to look for integrated business management software that combines all of your business operations requirements into a single, easy-to-manage platform. Using outdated, unconnected, or limited software inhibits your growth, decision-making ability, and workforce productivity. If you’re looking for a remarkably useful list of signs that your business needs integrated business management software, look no further than checking out this comprehensive breakdown.

Whatever your industry, business elements such as Accounting, CRM, HR, Operations, Task Management, Reporting, Inventory, Supply Chain Management, and Remote Work Productivity—every aspect of your business—are vital and require equal oversight. Ideally, look for software that balances a universe of features and digital options with something that helps you cater to the specifics of what your business needs. 

Continue to shape your precise vision of how you want your business to operate, while at the same time making it easy for yourself and your employees. 

Key Benefits of Manufacturing Software for Small Businesses

Posted on by Joshua Holbrook

When it comes to manufacturing, efficiency and speed are the top requirements to meet demands. The best way to increase the speed and efficiency of your operations is a cloud based manufacturing software that has individualized solutions based on the size of the business. A common misconception when it comes to an ERP for manufacturing is that it’s only useful and suitable for big businesses. On the contrary, due to the rise in business manufacturing software platforms in the recent decade, it is easy to find one suitable for any business size. The main caveat is to find a small business manufacturing software that is adjustable and flexible to accommodate the size of your business.

Benefits of a Small Business Manufacturing Software

According to Netsuite, “Manufacturing companies are the most likely adopters of ERP,” and the number one out of any other user. Additionally, “Manufacturers represented the largest portion at 47% of companies looking to purchase ERP software.” There’s no doubt that manufacturing companies benefit from the use of business manufacturing software. The tools used to achieve  success and efficiency are compiled in a single cloud-based system that all employees have easy access to, including through multiple devices at once.. This reduces human error, organizes important information that could otherwise be easily misplaced or lost, and creates an easier way to connect with clients. Here are more ways business management software for manufacturers can benefit your small business:

Better Organization

One easily recognizable benefit of using a small business manufacturing software is better organization of documents, data, and other information. Previously, it was manageable for smaller businesses to withstand information being placed in several different places. Now, by effectively usingERP software, businesses don’t have to ‘get by’ with disjointed data organization. On top of this new trend, it is difficult to grow your small manufacturing business by only using things such as a paper-based system, Excel, or having too many folders to keep track of. Employees are more likely to learn fast and be more efficient when the technological environment they’re surrounded in is up to date.

Imagine this: a new employee starts their first day of training only to be bombarded with information they need to memorize on the placement of important documents that are located in several places. One is in an overstocked file cabinet on the bottom drawer, one is in a folder on the computer amongst dozens of others, and the other is sent through multiple emails. Additionally, it is more difficult to communicate with clients through email that might be sent to spam, lost in the inbox, or on the phone when they assume your call is one of the spam calls we’re all too familiar with. . With a small business manufacturing software, it is easier to keep track of information and stay more organized.

Save Time

By using a small business manufacturing software, you are eliminating extra time spent training employees who are less likely to retain too much information in a short period of time. This extra training costs money (both directly and indirectly) over time, so it’s difficult to handle the long term strain that puts on a small business’s budget. Instead, training employees through a single, unified manufacturing software enables better retention as a result of the easy-to-follow structure and the nature of everything always being in one place.

Efficient Communication

People underestimate the necessity of what a seamless, integrated manufacturing system can do for communication. For both clients and employees, it is an integral part of growing a business to scale. When many manufacturers produce similar products for a similar target audience, it becomes difficult to differentiate yourself in the free market. By using a small business manufacturing software, it becomes easier for your business to stand out when you have a better system of communication with clients. Additionally, a seamless system and ease of usability can increase productivity and create more positive experiences across the board.

Accuracy

When too much trust is placed in human ability, it is easy to lose information or ignore tools necessary for growth. Without the right tools, a business can stagnate, or worse, deteriorate. Inaccuracy when counting inventory, managing logistics, or just the general flow of information can occur when the right systems are not in place. To avoid debilitating errors, tools such as inventory control, operations dashboards, integrated accounting tools, and document storage interfaces are all tools found within a small business manufacturing software that will help with accuracy and placement of information. 

The Takeaway

The best small business manufacturing software will be customizable to meet your business needs and size. Important features that include aiding in inventory management, reporting, logistics, and distribution to grow your small business. 

Small Business Software: Is An ERP Software The Right Fit For Your Business?

Posted on by Matt Bernot

Does your growing business need business management software? What makes a good ERP software for small and medium sized businesses? What are the benefits of an ERP software for your small business? These are the questions that need to be answered in order to help you make the best decision for your small business. 

It’s understandable to question the necessity of an ERP for your small business. Many business owners are still stuck on the fact that ERP systems used to only be feasible and practical for Fortune 500 sized companies. However, this is no longer the case. But before making any big decisions, it’s important to consider the following: How much can a business management software benefit your small business?

How To Make The Smart Choice

There are many areas of ERP software that your small business will find useful. Whether it’s in the form of customer portals, accounting, ease of implementation, or sales, the outcome of your success with small business ERP software will vary depending on how well you choose the right ERP software and how well it is implemented into your business.

Thanks to the increasing popularity and demand for business management software, there are many more options for small business software than most people initially realize. In recent years, there has been significant growth in ERP software to fit the needs and sizes of any business, which is why an ERP software might just be the best solution for your small business as opposed to piecing together many different software solutions for different features.

However, it’s not just just about the quantity of services provided by a small business software but rather, whether it fits your business needs and/or is moldable enough to fit those needs.

Costs and Considerations

Every business is unique, so the cost of a small business software matters in terms of what features a business can afford to pay for. However, among the best small business ERP options, accounting, centralized document management, customer/vendor management portals, mobile compatibility, CRM and sales, and inventory management are some of the things to look for in how an ERP software can fit with your business needs and with the best small business ERPs, can be included with one, low monthly cost.

The Benefits of Small Business Software

A Single, Streamlined System

The best thing about small business software is that it’s a  single streamlined system. This is useful for a variety of reasons: better organization, faster updates and access to information, saving time and money, better data security, and better communication. It erases the needs for too much manual work that can divert your focus when you should be focusing on important factors that grow your business.

Flexibility Of Use

The great thing about a small business software is that it provides flexible solutions to issues such as needing information outside of the office, accessing information on a multitude of technological devices, erasing the need for messy papers that can easily get lost beneath the rising piles. Additionally, it is easier to share information through a system where everyone has permissioned access.. No matter what products or services your business provides, there is no doubt that all businesses benefit from using a cloud-based business management system.

Better Customer Service

It’s not an exaggeration to say that good customer service might be the only thing that a lot of customers look for when deciding between one business or another. With the best business management software, the ease of access to customer information, including purchases, questions, requests, etc, are all easy to access with a centralized database. According to The Harvard Business Review, “…customers who had the best past experiences spend 140% more compared to those who had the poorest past experience.” Once again, customer service is often the distinguishing feature from one business to another.

Ensure A Smooth Transition With Your Small Business Software

In order for your employees to use the new small business software properly, sufficient training must be provided. This way, you and your employees are using the full benefits that come with ERP software. Being aware of your team and providing them resources to train through the new changes will build teamwork, confidence, and allow for full and better uses of the resources provided by a small business software.

The Takeaway

While it takes careful planning and consideration to jump into purchasing and implementing a small business software, being aware of the diverse and various ERP software systems to choose from can ease those worries. Keep in mind, choosing the right software to fit the needs and budget of your business and being aware of the costs to maintain success in the long-term is key. 

Small Business Management Software: 2022 And Beyond

Posted on by Matt Bernot

Everywhere you look, new small businesses are springing up. In this extremely competitive environment, incredibly talented entrepreneurs who are offering everything from phone repair to dog walking to proofreading to artificial nails are attempting to get the ‘business’ side of their business off the ground. No matter how big or small your company is, you should now realize how critical good management is to small businesses of any variety. This is not a simple task, as there are numerous aspects of running a business, each of which—if neglected even slightly—can have disastrous consequences.

Small business owners that are looking beyond 2022 will find a wealth of options for management software that make big promises. In this article, you’ll learn about the most important features of any small business management software of the future.

Scheduling

For small businesses with rotating shifts and flexible service hours, this is a must-have feature. Hiring a receptionist is an option for most businesses, but if the software you use is optimized for data input and organization, you’ll save time and avoid mistakes by allowing everyone to have access to all pertinent schedules. Perhaps it would be better to invest in small business management software to perform this task than to risk the typical errors that go along with manual data entry. This leads us to the next element:

Payroll

The scheduling and payroll functions of small business management software must be trustworthy and precise. What if your company was overpaying its employees by hundreds of thousands of dollars a year, or worse, was facing a lawsuit for underpaying its employees? Thus many successful companies create paystubs and documentation and to have better records and less stressful paperwork. Paycheck disbursement is another important function of your small business management software. Paper checks are becoming obsolete. The most popular ways of distributing funds are direct deposit and money transfer services like PayPal, Zelle, and Venmo. The future of small business management software is already here, and it knows how to ensure all your company’s Ts are crossed, and I’s are dotted.

Accounting

Your small business management software should also allow you to keep tabs on your company’s financial flow. Client payments are essential to the survival of your business. Checking the books at the end of each day will provide you peace of mind that your business isn’t slipping behind or, conversely, allow you to celebrate its success. By having accounting features directly embedded into a business management system, it’s possible to maintain a system of checks and balances so that executives, managers, and other relevant parties can keep tabs on profits and cash flow.

Transactions

Payment processing is an integral part of running a business and should not be confused with accounting. Your consumers will certainly pay using credit or debit cards due to their convenience, but they may also pay with cash. The future of small business management software will lie in its ability to seamlessly handle payments, allowing you to keep the sales flowing without interrupting business operations. Being able to keep track of all of the invoices and payments received, no matter the method, is crucial.

Increased clarity over bank reconciliation, inventory management, and expense tracking is another key component of small business management software. Being able to know when items are in and out of stock so that stock levels can be properly maintained will go a long way to helping a small business shore up its financial transparency. 

Communication

Your next choice in small business management software should also include an easy-to-use method of conveying information to your employees. A number of services provide encrypted message boards where you and your coworkers can freely exchange sensitive information that can be tracked and monitored. Whether it’s internal messaging about a project or ask, or a customer asking a question about their product or service, it’s important to have a reliable method of communication baked into the software that your business uses to run its day-to-day operations.  

The Takeaway

To sum everything up, when looking for small business management software, you should verify that it has these bare-bones capabilities. Finding software that performs multiple, or perhaps all, of these tasks will make life much easier for your company.

Small Business Accounting Software Should Account For More Than Just Accounting

Posted on by Matt Bernot

It’s hard to understate the benefits of accounting software, especially for a small business. After all, accounting is a crucial aspect to all businesses—all it takes is one misplaced decimal or mistake to throw off all of your finances. But there is more to small business accounting software than just preventing errors. For one, your financial data is more secure with small business accounting software. Compared to alternative data management, cloud based storage—like the kind that accounting softwares use—is far better at protecting your data from unauthorized personnel.

Small business accounting software also allows for better communication between your business and customers or vendors with the inclusion of customer portals. For a small business, this is great news. Forbes considers maintaining high levels of customer service to be one of the main factors in success. Customers and vendors can also view invoices, bills and make payments from their integrated portals.

At the end of the day, small business accounting software makes the whole process of accounting simpler. Small business accounting software can generate financial reports in seconds so that your business can prepare for tax season, easily view profitability metrics, and make quick decisions when necessary, all while saving time and cutting back on excess labor.

Additionally, small business accounting software makes the process of accounting less complicated due to its ability to centralize and sync data. Meaning, that information is always up to date across all departments in your growing business. This is also why small business accounting software doesn’t just benefit your accounting department, but the rest of your business as well.

Accounting and Human Resources

One of the best examples of how small business accounting software helps your company outside of the accounting department is with regards to human resources. For your employees to be fairly paid and happy in their respective roles, your human resource department needs to keep track of lots of moving parts. Between the salary each employee earns, how many hours worked, time-off taken, breaks, overtime, and even benefits, the human resources department has a lot of data to keep track of. This is data that the accounting department also needs access to in order to make sure that the books are properly aligned at the end of each month or quarter.. Given the ability to centralize data that small business accounting software provides, the human resources department and accounting department are afforded joint and easy access to the data that they both need. Businesses need to have a certified accountant to have successful data management and use several software providers. 

Accounting and Purchase Ordering

Centralized data in small business accounting software once again shows its utility when it comes to purchase orders and stock. The main duty of accounting is to manage your business’s expenses and at one point or another, your company will have to purchase supplies in order to keep running. When your data is in sync and communication is facilitated between your departments, it becomes easier to make sure that your expenses and receipts match. This kind of environment also lends itself to transparency between departments which in turn leads to smoother operations overall. 

On the side of purchase ordering, small business accounting software can also help with keeping track of stock. A central feature of accounting software is its ability to track accounts, and when combined with inventory management, means that your company has a better sense of how much inventory there is in addition to what items are most in need of restocking. Your management will always know how much it will cost to restock your inventory, whether your small business currently has the funds to do so, and how the budget can be rearranged in order to meet your inventory needs.

The Takeaway

Accounting software is certainly beneficial for your accounting department but its benefits and advantages are much more farther reaching. For your entire business, small business accounting software offers increased security, enhanced customer service, and most importantly, centralized data that can be accessed at any time by anyone in your company. Afterall, it doesn’t do you or your company well if the accounting department exists in its own silo. Small business accounting software contributes to all of the departments in your small business, human resources and the c-suite being just a few examples.