UNLOCKING FINANCIAL EFFICIENCY: The Accounting

Technology Tools Every SMB Needs

Unlocking Financial Efficiency: The Accounting Technology Tools

Every SMB NeedsSoftwares are responsible for streamlining many business operations, from project management to time tracking and more. These tools can save businesses time, reduce complex processes, provide premium business insights and cut operational costs as a result. Accounting softwares and the additional accounting technology tools that work alongside them are no exception.

With the right business accounting tools, your business can get better financial insights, quickly manage cash flow, improve payroll processes, expedite tax filing, and more. But, with so many options available, narrowing down the accounting tools capable of protecting your financial information while providing the accounting features you need can be challenging.

This guide will provide an overview of the important accounting technology tools that every small business can utilize and benefit from to unlock the ultimate system of financial efficiency for their business. In it, we will discuss the importance and need for accounting technology tools, and recommend the tools that are essential to running your business at maximum efficiency and profitability.

WHY YOU SHOULD USE ACCOUNTING TECHNOLOGY TOOLSWhile many businesses go overboard on the technology they use, there is of course the opposite end of the spectrum, where a business fails to utilize accounting technology tools that would expedite and improve their business processes. According to a survey conducted by the American Institute of Certified Public Accountants (AICPA), 76 percent of firms use time and billing software. This means roughly 24 percent of businesses fail to use software to aid them in financial data management.

With the relatively low costs and high value these tools provide, it makes little to no sense for a business not to adopt some form of technological accounting aids in order to make their financial data more accurate, more organized, more manageable and more readily available. Accounting tools can also help businesses increase efficiency by:

Helping your bottom line: While accounting technology tools do require some initial time investment as you learn the software, in addition to software costs, they save businesses time and money in the long-run. By advancing the ability of an accountant, supervisor, or business owner to interpret data both efficiently and effectively, money is saved and made through better use of resources and more accurate financial filing. Most of the softwares also have a relatively low buy-in, ranging from about $12 to $40/month or about $200/year for a software download. While your business’s software costs may increase as a result, these softwares make up for the costs with their time-saving features and ability to minimize accounting errors.

Improving data accessibility: When accounting technology tools are included in your accounting process, they can make your data more readily available and decrease the probability of data loss by utilizing off-site cloud storage. Cloud storage and cloud backup allow users to access the data they need anytime, from anywhere with an internet connection. This around-the-clock access is important to maintain current business insights and stay up to date on all of your financial data.

In addition, cloud storage and backup features reduce (and sometimes even eliminate) the risk of data loss. By incorporating a cloud solution in your accounting software mix, your accounting data won’t be vulnerable to the typical causes of data loss that

occur on location and via physical storage devices -- threats like viruses, hardware damage, deleted files, flood, fire, human error and more. This data loss prevention tactic is especially important given the financial data storage requirements businesses must comply with in order to protect themselves during IRS audits and other financial inquiries and discrepancies. Some accounting softwares have off-site cloud storage built-in to address short-term accounting storage needs. It’s recommended that businesses also incorporate a long-term cloud backup software in addition to this to improve their financial data storage, safety, and availability in the long run.

Mitigating accounting errors: While the potential for human error and inaccurate entries will always exist, many accounting softwares have the ability to detect errors and notify their users to these errors as they arise. Some accounting softwares can also automate a handful of accounting tasks -- eliminating the need for some manual entries, and thereby minimizing the potential for human error. For example, Quickbooks can remember your business’s non-variable expenses (such as office rental costs) and factor those in month after month, so you don’t have to. To further reduce the possibility of accounting errors, make sure your accountant or financial supervisor have some form of technological training or familiarity with the softwares so they’ll best know how to use them. Many softwares offer user guides and demos that will get your staff up to speed on utilizing the accounting softwares as well as backing up financial data so that it’s always available and retrievable.

ESSENTIAL ACCOUNTING TECHNOLOGY TOOLSWhen it comes to efficiently running your small business, even the smallest of accounting technology tools could mean a world of difference for efficiency and organization. The quicker your business is able to securely process its data or even access previously recorded data, the more time you’ll be able to devote to growing your business and conducting your day-to-day operations.

From cloud backup and accounting to benchmarking your business against the industry averages, tools like the ones listed below can change the way you run your business entirely. Here are a few tools you should consider adding to your business’s accounting resources:

Accounting Softwares

Accounting applications like QuickBooks, SageOne and Peachtree, and MicroSoft Money provide low-margin accounting support to small businesses. These apps, and others like them, provide necessary tools for accounting, such as invoicing, balance sheets, payroll, company snapshots and more.

Likely the most useful of any accounting technology tool in regards to properly tracking and managing your business finances, much of this software allows even financial novices to properly account for monetary data in an efficient and accurate way. Whether you choose a desktop based accounting software, or a cloud-based one, be sure to pay particular attention to how your data is being stored and for how long so that you can take steps to backup your data as needed. Read on to see which accounting software providers and cloud backup solutions providers we recommend.

Cloud backup

Lost information can halt a business in its tracks and cause further issues down the line when it comes to proper filing and being able to account for financial accuracy. Still, many businesses don’t backup their data regularly enough -- a mistake that can have extreme consequences when data is lost or cannot be located in time for an IRS tax audit, or other need.

It’s essential to always maintain access to your business’s financial records, especially during important instances, like being audited by the IRS. Whether your software stores data in the cloud, or on your computer itself, you should always maintain at least 7 years of your financial records, such as accounts payable/receivable, invoices and expense reports, for audit purposes. In addition, CPAs will often recommend that businesses keep their journal entries, profit and loss statements, financial statements, check registers and general business ledgers permanently. If your cloud software does not support these retention time lengths, you will need to implement a secondary backup option that is reliable and dependable.

Data experts agree that it’s wise to keep three backups of crucial data so that you can be sure your data is safe and secure should a crash or disaster ever happen; and whilst many people use local, physical storage options to hold their accounting data, cloud storage and data backup services offer greater coverage, more failsafe features, and more robust backup options.

Rather than only storing your business’s financial data locally, where it’s vulnerable to hardware failures and natural disasters, like floods or fires, you should aim to store your data in at least 2 other off-site locations to keep it safe from local threats. Cloud backup is a commonly recommended way to give your data the extra layer of protection it needs to prevent permanent data loss. When considering a cloud backup provider, make sure you choose a reliable provider like Nordic Backup that supports backing up your accounting software as well.

With cloud backup, your nominated data is uploaded to an off-site secure data center via an internet connection. These data centers employ multiple failsafe mechanisms to store your backed up data and keep it both accessible and retrievable at all times. This provides an ongoing method of protecting your QuickBooks or other accounting files, along with any other data you elect to backup.

Nordic Backup offers unlimited and flexible storage capacities, and a range of security, data recovery, and syncing features that will keep your accounting data intact and retrievable no matter what.

When choosing any cloud backup provider to backup your accounting and other business data, make sure they offer:

• End-to-end encryption so that your data can’t be read or compromised, even during transit to the cloud

• Choice of 256-bit encryption, AES encryption, Twofish, or Triple DES encryption — all commonly used by militaries, governments, financial institutions and other trusted internet service providers worldwide

• Data centers backed by multiple levels of access control (alarms, armed guards, video surveillance, etc)

• Data centers outfitted with uninterruptible power supplies, redundant cooling and

multiple redundant gigabit internet connections so that your data will always be available when you need it, without downtime

• NAS and network share backup

• Annual SSAE 16 Type 2 audit of its data centers

• Redundant server storage for your data

Nordic Backup offers all of these features, and more, and supports the most popular accounting softwares so your data will always be available when you need it, no matter what data catastrophes strike your business and it’s on-site data.

Paperless Document Manager

Instead of having files full of printed documents or having to keep track of and manually transport each of these items and risk losing them or having them destroyed, there are paperless document manager tools. All of your documents are stored and organized using technology so that they can be easily accessible. While even technological data can be lost, if the proper backup is used, your information will always be available and protected.

This also allows more than one department to look at content at once and to communicate in real time, saving your business time and subsequently money. After all, the loss of physical copies of files (assuming they are not digitally backed up or stored) could mean the loss of essential financial data necessary for processes such as tax returns, or could even result in legal issues should your company be incapable of returning to past financial records with a strong degree of accuracy.

Workflow Tools

Although it may not seem like it directly connects to accounting technology at first, workflow tools are essential for keeping track of financial transactions taking place

in your small business and allows for open, immediate and accurate communication between employees. Applications like BaseCamp and Workamajig provide tools for document sharing and management, billing receipts, active task management, and many other options for increasing the efficiency of your business and the clarity of communication between departments and employees, and even clients.

E-Signature

The time it takes to get signatures of approval either from other employees or even from clients can delay your transactions and ability to carry on business. You can even apply automatic signatures in order to streamline certain processes. Tools like RightSignature from Citrix among others provide this kind of business support.

When trying to keep finances in order, make sure everything is handled appropriately and legally, and expedite business transactions, even something as small as an e-signature tool can make a world of difference.

ACCOUNTING SOFTWARE COMPARISON: QUICKBOOKS VS SAGE 50Quickbooks and Sage 50 are two of the most popularly used accounting softwares for small businesses. These programs are easy to use and provide a multitude of features that makes financial management easy and painless for anyone trying to run a business.

When selecting a software package that is right for you, make a list of your criteria and check it against this review of today’s leading products. Your prioritized list may look different from that of another business, but reliability and continuous access will always be found written at the top. So whether you invest in Quickbooks, Sage 50, or any other accounting software, make sure you also have

a secure cloud backup software in place to ensure round-the-clock retrievability of your accounting data.

Quickbooks Software

This accounting software is the most reasonably priced option on the market and provides a multitude of useful features for invoicing, processing credit card transactions, running payroll, and more. QuickBooks can be useful for small to medium sized businesses as well as freelancers and online merchants. This software also wins points for ease of use, as everything is setup on a dashboard and is easy to navigate. QuickBooks can also be integrated with more than 150 third-party apps, letting several processes be streamlined into this single service.

• Tons of features

• Low Price

• Good for freelancers/online merchants/etc.

• App Integration Capabilities

Pros:

• Purchasing QuickBooks is affordable, especially when comparing to the cost of hiring an accountant or bookkeeper.

• The interface is also extremely user friendly, making the training process easy while promoting higher data entry accuracy.

• QuickBooks’s positive reputation wasn’t earned overnight. It has consistently earned praise for the high quality product that it is and it’s reliability. At the same time, the folks at Intuit continue to develop its functionality to meet the growing needs of their customers.

Cons:

• The high quality and intuitive nature of QuickBooks is a major plus. However, when full responsibility is placed in the hands of a software product errors occur and disasters strike. Therefore, it should ultimately be the responsibility of the user not

only to ensure the precision of their files, but the security of their data. In doing so it is smart to invest in a backup plan.

Sage 50 Premium

Designed for small businesses and having three levels of software for different needs, Sage 50 satisfies almost every aspect of what one might want in their accounting software. It produces professional-looking paperwork, is extremely efficient, and makes itself easily understood so that even non-accountants can operate it. Its strengths reside in cash flow management and it even breaks down spending by department, which can come in handy if you’re managing a larger team with multiple departments. However, the software is a bit less intuitive than Quickbooks, so it may take time before you know how to utilize the software to its fullest.

• Ideal for Any Variety of Small Business

• Easy-to-Use

• Efficient

Pros:

• Sage 50 is known for it’s strong features especially when it comes to finance reports and transaction breakdowns. The structure clearly displays where dollars are coming and going which saves time and effort when evaluating cash flow.

• Sage 50 assists in telling a comprehensive story about your numbers by providing industry benchmarks for comparison.

Cons:

• The more complex features of Sage 50 are outstanding if you’re already skilled in the software. However, it can be harder for new users to grasp.

• The cost of purchasing the software is also higher than other competitors. If you are willing to invest in purchasing the software and in the training to get your team on board, you may also want to consider investing in an online backup system to ensure your data is secured against risk of human error.

WHAT TO TAKE AWAYWhen using accounting technology tools for your small business, it is important to consider which tools include features that will provide the most benefit to your business. In order to navigate selecting a tool, you’ll first need to decide which features are most important to you as you manage your business accounting.

While all of these tools can be useful in handling financial information, some items may be more valuable to expedite processes in your company where excess time is being taken.

However, even if all of your financial data is more organized and efficiently managed by utilizing an accounting software, that doesn’t mean that it is properly protected against data loss. While accounting softwares provide a way to keep your financial data accurate and gathered, it is necessary to have a reliable cloud backup solution in place should something crash or cause your data to be lost.

Backing up this data is a crucial step that protects data tied to your clients, customers and your business investment. Protect your important business data from loss and deletion now with a reliable cloud backup provider, like Nordic Backup. Nordic Backup offers all of the data backup features a business needs to keep their accounting data secure and retrievable at all times.

Try Nordic Backup free for 30 days and experience the peace of mind in knowing your data is always in good hands and only ever a click away.

888-668-0447 • support@nordic-backup.us

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About Nordic BackupAffordable plans, rapid data disaster recovery and secure online backup you can rely on — that’s the Nordic Backup promise.

Many years ago, long before people started calling it “the cloud,” we had a passion for secure online storage and making our backup solutions affordable and available around the world.

For more than a decade, our passion for innovation has driven us to create software solutions that not only keep pace with the changing digital space, but also do so affordably and comprehensively. As a result, we’ve created a robust line of consumer and enterprise online backup solutions, built to backup any kind of data anywhere in the world.

We know that your data is critical to you. With Nordic Backup, you’ll never be without it.

Visit www.nordic-backup.com to learn more.