How to Choose Accounting Software for your Electrical Business

You probably didn’t start your electrical business to be a bean counter and you’re not alone. One of the biggest challenges South African electrical businesses face is managing their finances effectively.

According to the

Xero Time to Build Report

, the adoption of tools like cloud accounting has grown in South Africa, from 13% of SMEs using it in 2017, to 61% in 2020. Technology like cloud tools and automation are helping to level the playing field for small businesses; however, many still face barriers to adoption, meaning almost 40% of small businesses still don’t use such tools.

It’s not surprising - managing finances can be daunting enough and that’s before you add a seemingly complex technology to the mix.

Accounting tools can be confusing and daunting without the proper training - but not using them can hold you and your business back from reaching its full potential - whether it’s not knowing what’s going on with the finances or not being able to access loans to help you grow.

In this article, we’ll break down exactly what accounting software is, how it can benefit your electrical business, when you should consider making the switch from manual bookkeeping systems, and how to choose accounting software for your electrical business.

First things first. You might’ve heard of accounting software before but what exactly is it and how can it do for your electrical business?

Accounting software organises, records, and analyses all the money that flows into and out of your electrical business. Using accounting software helps ensure that your financial management is effective and efficient.

Get this,

the percentage of South African SMEs satisfied with their productivity increased from 68% in 2022 to 78% in 2023

, and SMEs named increased efficiency or productivity as the main driver of business confidence.

For electrical businesses, tracking inventory, handling expenses, quoting and invoicing are complicated tasks. You can do it on paper and spreadsheets - but to do it well you need the right tool for the job.

Accounting software is a centralised hub where all these areas come together, making your operations more efficient, and putting you in control of your electrical business's growth.

Check out

this video from NetSuite

to get more info on what accounting software is and what it does.

Now that we’ve explained what accounting software is, let’s dive into how it can benefit your electrical business.

Some of the ways accounting software can benefit your electrical business include:

For a more detailed breakdown of the features and benefits of accounting software,

check out this article from business.com

.

Deciding when to make the leap from traditional bookkeeping methods to modern accounting software is critical for electrical businesses so timing is everything.

Let’s look at a few of the signs that it’s time for you to make the shift in your business:

As your electrical business expands, manual bookkeeping will become more complicated and time-consuming. If you want your electrical business to grow, you need solid financial management. Accounting software ensures that your financial systems grow in parallel with your electrical business.

At a certain point, your electrical business will have too much financial data for you to easily find what you’re looking for. Accounting software gives you immediate access to important financial data, like your current profit levels, expenses or cash flow helping you make better financial decisions.

South African businesses lose 1,616 hours, or 96,960 minutes, per year to admin

. Accounting software automates these routine processes, saving you from this time-consuming manual work and allowing you to focus on more productive tasks such as electrical jobs or thinking of ways to grow your business.

Human errors in manual calculations and data entry can have a big impact on your electrical business’ financial accuracy. Accounting software minimises these errors, ensuring that your financial records and reports are precise and accurate.

Not everyone in your electrical business has expert accountants on hand. Accounting software simplifies complex financial tasks, making it possible for almost anyone to efficiently manage their financial operations.

If trusted advisors, industry experts or even SARS suggest that you should use accounting software, it's a sign that you should make the switch. These outsiders often recognise the benefits that accounting software can offer your electrical businesses.

Check out these tips from dummies.com

that you should consider when moving from a manual bookkeeping system to accounting software.

Now that you know the signs when it's time for accounting software in your electrical business, the next step is to choose the right option for you.

The goal in this critical step is to ensure the tool you choose integrates with your business seamlessly and that you’ll be able to benefit from all of its features.

Here’s what you should consider when choosing accounting software for your electrical business:

Check out

this guide from fundinghub

that covers the best accounting software solutions for South African SMEs to help you find the right one for your electrical business.

For South African electrical businesses, embracing accounting software is more than just a convenience; it's a strategic move that can encourage growth.

In fact, 57% of ServCraft customers use accounting software, helping them efficiently manage finances, streamline their operations, and make better financial decisions.

By switching to a tailored accounting solution, you not only simplify daily financial tasks but also ensure that the future of your electrical business is robust and financially sound.

Be sure to keep an eye out for the rest of our articles where we’ll dive deeper into other areas of financial management and how you can use it to grow your electrical business.