How accounting software can support entrepreneurship by levelling the playing field

If you’re an entrepreneur, chances are you chose this path to build a better future for yourself and your family by turning your passion into a business.

It’s a bold and rewarding journey, but one that often comes with unexpected challenges, especially when it comes to financial administration and tax compliance. 

What begins as a dream can quickly become overwhelming as the day-to-day realities of managing finances take hold.

It’s not a lack of drive or talent that holds business owners back, it’s the weight of spreadsheets, scattered receipts, and time-consuming manual processes.

To truly thrive, entrepreneurs need more than just tools; they need guidance, visibility, and systems designed to grow with them that simplify complexity and support them at every stage of the journey.

These challenges can stall momentum and limit strategic decision-making.

Fortunately, the rapid advancement of financial technology, especially cloud-based solutions, has begun to dismantle these barriers.

By delivering intuitive, scalable, and cost-effective platforms, Software as a Service (SaaS) providers are enabling entrepreneurs to take control of their finances, stay compliant, and focus on what truly matters: growing their business.

The power of modern accounting software

The advent of cost-effective and accessible accounting software has empowered small business owners to take charge of their financial futures. 

Features like real-time bank feed integration ensure that transactions flow seamlessly into the system, reducing manual data entry and providing an up-to-date, accurate view of cash flow and business performance.

With these tools, business owners gain not only time but the clarity they need to make smarter, faster decisions.

While it is possible to run a small or new business without accounting software, this approach is time-intensive and error-prone.

As a small business owner, you wear many hats, and your time is a precious commodity.

Today’s accounting software automates time-consuming tasks such as data entry, reconciliation, and report generation, freeing up many hours you can use to do billable work, build relationships with customers, or focus on strategic growth.

Save time, streamline admin and achieve compliance

Accounting software enables you to prepare accurate, compliant tax returns.

It can also save you and your team hours of a week that you would otherwise spend on capturing data and reconciling transactions, while eliminating human error. And it enables you to collaborate with your accountant in real time.

Consider a few scenarios of real-world small and medium businesses (SMBs), like a restaurant chain with multiple brands and companies.

Using a cloud-based financial management system makes it easy for the business to view and analyse performance at the store and brand level and run consolidated reports for the group.

Or look at a smaller company in the business-to-business realm.

Adopting an affordable but flexible accounting system can cut back hours of admin involved in invoicing.

It makes it a snap to create and send professional invoices efficiently. Some platforms automate the process from cost estimation to invoicing to flagging late payments. 

Real-time cash flow insights allow the company to see that while sales are strong, payments from some customers are delayed.

This could encourage them to implement stricter payment terms, improving cash flow management. Financial software allows the business to be proactive instead of reactive about finances.

Another example might be an independent clothing retailer with a fast-growing business.

The accounting software allows the owner to spot financial trends, such as costs rising faster than sales.

This allows them to adjust expenses like advertising to ensure profitability.

Maximising ROI from your accounting software

To drive the best return on investment (ROI) from accounting software for you and your business, it's crucial to find a solution that truly meets your needs.

When selecting software, consider functionality, ensuring it offers the features you need, like invoicing, expense tracking, and tax compliance.

Prioritise ease of use, especially if you don't have a financial background, and ensure localisation to comply with local tax regulations.

Depending on your business, integration with other systems like e-commerce platforms or payroll is important, as is scalability to accommodate your company's growth.

Robust security measures, including data encryption and secure access controls, are essential. 

Finally, seek advice from your accountant, as they can recommend software that fits your needs and integrates with their workflows. 

Beyond handling routine tasks, an accountant can help you focus on strategic priorities that support your business’s long-term growth.

A lever for long-term successSouth African SMBs recognise the value of digital transformation. Some 92% of respondents in the Small Business, Big Opportunity survey from Sage see digital tools as essential for boosting revenue.

Yet there is a gap between this awareness and full adoption, with only 78% integrating these technologies into daily operations.

In financial management, digital tools like accounting software can deliver immediate and measurable impact –helping businesses of all sizes compete and thrive, now and into the future.

It isn’t just about convenience. It’s about positioning your business for long-term success.

Elricco Govindasamy, Director Accountants at Sage Africa & Middle East.

BUSINESS REPORT