Many electricians are self-employed or run their own businesses, and therefore are responsible for managing their own accounts. Although it is certainly possible for an electrician to keep track of their finances through manual means, such as paper bookkeeping and Excel spreadsheets, this is not an ideal solution.
It's so easy for mistakes to be made, which can not only cost the tradesperson a great deal of money, but they could also lead to an unpleasant visit from the tax man. Manual bookkeeping also takes up a great deal of time and mental effort that could otherwise be spent on finding new clients, growing the business, and enjoying personal time away from work.
So, what is the alternative? There are several options when it comes to accounting software for electricians, and this technology can make the act of bookkeeping considerably easier and more accurate. The following article takes a look at the benefits of accounting software for electricians, and some of the best software packages available.
What are the benefits of accounting software for electricians?
Save time
Most electricians are extremely busy and limited spare time for bookkeeping, but accounting software can save hours of work each week. It links to business bank accounts and invoices, automatically tracking cash flow. All your financial information is compiled automatically, meaning it eliminates the need to sit at a computer manually inputting figures.
Simplifies taxes
Most electricians dread the annual tax deadline, as it is time consuming and poses a risk of costly mistakes. But accounting software can automatically file your tax return for you, based on the information it holds on your earnings and expenses.
Minimise errors
Accounting software has become so advanced that it is far more accurate than any human mind. By relying on a software package, you can enjoy peace of mind that your calculations are correct and your business is not losing money or accidentally engaging in fraudulent practices.
Synchronise data
Perhaps the best benefit of accounting software is that it keeps all of your financial information in one easily accessible place. From a single portal, you can view your earnings, expenses, invoices, tax returns, receipts, and more.
Extra functionality
Although accounting software is fundamentally designed to manage finances, many tools offer extra functionally too. Certain programs may double up as an electrician’s job management app, or time management software.
Electrician accounting software options
There are several different applications and programs that allow electricians to manage their accounts more easily, but which is the best? Each one has its own unique pros and cons so it is up to the individual to make the decision which is right for them.
QuickBooks
QuickBooks is great for small businesses, and it is for good reason that it is one of the biggest names in the accounting software world. It is more expensive than other alternatives, but you are paying for quality and excellent functionality. It offers in-depth record-keeping, inventory management, time tracking, and an excellent mobile app allowing users to manage their accounts on the go. It is fully customisable, user-friendly, and one of the most popular options on the market.
Xero
Xero has first rate accounting functionality, including sales, purchases, bills, expenses, and payroll. It uses artificial intelligence to automate processes and has a wide range of features and integration options. It can be more complicated than other software packages, and the user experience and navigation are inferior, but it is perfect for small to large businesses.
FreshBooks
FreshBooks is perfect for sole traders and very small companies, but is not quite as scalable to large organisations. For basic accounting functionality, the user experience cannot be matched, and it offers an intuitive mobile application with mileage and time tracking functionality.
Sage
Sage is a small business accounting software that is incredibly comprehensive and somewhat on the pricey side. But for the price it offers excellent integration and advanced accounting functionality. One of the downsides is that it is for Windows desktop use only, with no associated mobile app. It can seem a little dated in appearance but it is a powerful piece of software that gets the job done.
Conclusion
In summary, it is a good idea for electricians to adopt accounting software as part of their business inventory. It will save them time, money, and effort in managing their finances. There are a wide variety of options available, so it is wise to do your research to find the application best suited to your business needs.
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