Could an accounting app save your business time and money?

Bookkeeping might not be your favourite part of running a business. Checking receipts, manual calculations and tax deadlines can feel overwhelming, but financial management doesn’t need to be a hardship - there are business accounting apps out there to help save you time, money and stress.

Here we’ll take a look at how switching from traditional bookkeeping to an accounting app can transform your workflow, cut costs and even improve your team’s productivity.

Is traditional bookkeeping working for your business?

If you're still tracking expenses on spreadsheets or even paper, it might be time for you to reconsider. Traditional bookkeeping might be familiar, but it’s often inefficient, with manual data entry taking up valuable time, mistakes being costly and the worry of making sure you don’t miss tax deadlines.

And if you hire someone to handle it manually, this can really add up. For businesses trying to stay lean, these more traditional methods could be draining your resources.

How accounting apps can be transformative for SMEs

The best accounting apps do more than just store numbers - they help you understand them.

Here’s how they help:

• Time-saving automation: From syncing with your bank to automatically categorising expenses, these apps can do hours of work in minutes, saving you manual input. Plus, lower bookkeeping costs mean more resources to invest elsewhere in your business.

• Invoicing made simple: Send invoices, track payments and even set up reminders to prompt customers to pay on time.

• Real-time reporting: Instantly check how your business is doing with dashboards showing key factors like cash flow and profit and loss.

Do you still need an accountant?

While an accounting app is a powerful tool for businesses, it’s not a complete replacement for an accountant. Particularly if you’re a limited company or VAT registered, as there are legal and strategic responsibilities where a professional’s input is crucial.

The app can be used as an insightful day-to-day tool, and your accountant is there to handle the more complex matters.

Busting common myths about accounting apps

Here are some common misconceptions:

“It’s too complicated for non-accountants”

Business accounting apps are built with small business owners in mind, not finance experts. They're intuitive, user-friendly and designed to make managing your finances easier.

“My data won’t be safe in the cloud”

Cloud-based apps use the same level of encryption as banks. You don’t have to worry about losing files and other data as it’s all backed-up.

“It’s too expensive”

Most apps have affordable monthly plans, with some even offering free versions with basic features.

What to look for in an accounting app

There are some things to look for when choosing the best accounting app for your business:

• Bank integration: Saves time and reduces errors

• Smart invoicing: Create, send and track invoices quickly and easily

• Expense management: Log receipts and expenses on-the-go

• Tax handling: Essential for all businesses

• Reports and dashboards: Stay on top of your cash flow, profit and forecasts

• App integrations: Link to other tools like Google Workspace or Microsoft 365

Streamline your business processes with digital tools

Accounting apps are just one type of digital tool you can use across a business to help you work smarter and more streamlined. From collaboration platforms to HR software, tech can boost productivity and free up time for growing your company.

Switching from traditional bookkeeping to an accounting app could help simplify your finances, save time and money, while also reducing your stress.