Starting A Small Business? Here’s Why You Need Revenue Software
Nowadays, small businesses are popping up everywhere. In an increasingly saturated market, it's important for small businesses to stand out to attract and retain customers and clients. Accounting and financial management are among the many elements associated with running a small business.
Unfortunately, according to the Association of International Certified Professional Accountants, there's been a significant decrease in qualified professional accountants on the market. Between 1990 and 2021, the number plunged by almost 50% as fewer young people enter the profession while the baby boomer generation — who make up three-quarters of CPAs — fast approaches retirement.
Meanwhile, Bloomberg's analysis of the Bureau of Labor Statistics' data found that there are 340,000 fewer accountants than five years ago. While this talent shortage has become a problem for accounting firms, there is also downstream impact noticeable among small businesses. Many small businesses struggle with bookkeeping in a tricky environment of higher interest rates and require professional guidance. Fortunately, small business owners can also rely on the benefits of accounting software and platforms.
In this post, we'll take a look at some reasons your small business may need revenue software:
Focus on strategy
For small business owners, it can be overwhelming to handle the various factors and moving parts involved in business operations. This includes bookkeeping and accounting, which tend to take a lot of time and effort. However, using modern software can help ease the burden and allow small business owners to focus time and resources on more revenue-generation strategies.
Among the popular alternatives today is SOFTRAX's revenue recognition platform, which helps automate the revenue recognition and management process. Software like SOFTRAX’s helps business owners avoid the hassle of dealing with complex spreadsheets or manual means of bookkeeping, boosting back-office automation to help efficiently and effectively manage complex regulations and gain visibility of business performance. Instead of spending too much time doing accounting or revenue management, you can focus on optimizing strategies for other areas of your small business, such as marketing or product and service development.
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Understand your business' financial health
As mentioned above, using revenue software can help provide insights on how your small business is doing. These platforms can help process and analyze business revenue and other financial data in real-time, providing a snapshot of your small business' performance and what may need to change. This data varies from overall budget information to detailed profit, loss, expense, and tax summaries.
Of course, while revenue software can help inform you about your business' financial health, it also helps to run manual check-ins once in a while. Tips from the US Chamber of Commerce include the importance of reviewing critical business metrics monthly to help you stay on top of things. This includes profit and loss statements, accounts payable and receivable, as well as indirectly relevant metrics like customer loyalty and marketing engagement. By combining these insights with data from your revenue software, you can make more informed decisions to help your small business succeed.
Support your employees
Finally, another benefit of making use of revenue software is that you'll have more time to focus on your employees and other people involved in your small business. Using revenue software helps eliminate the hassle of delegating accounting or bookkeeping tasks across multiple people or teams.
At the same time, as explained in our previous post on "Understanding The Concept of Payroll Advance and Its Benefits", many employees also need rigorous support from their employers, as LendingClub's report found that 60% of Americans continue to live paycheck-to-paycheck. Using revenue software can help you budget your small business' expenses, including setting up payroll advances to help employees through unexpected or emergency financial situations without compromising your business' finances.
Additional Readings:
How To Answer The Interview Question: What Are You Passionate About?
How To Future-Proof Your Career With Upskilling and Microcredentialing
Leveraging The STAR Method To Keep Interview Answers Short But Powerful
Meet The Writer!
My name is Rosetta Juliana and I have been working in the field of human resources for over ten years. Clearly, my passion lies in identifying how humans form relationships. That's why I've recently taken to working from my laptop while traveling around the world! This allows me to freely form connections with all sorts of people from different backgrounds.
