Codestone

Category: Accounting & Financial Software

Small businesses that are weighing up whether to make a business investment have been advised that accounting software can help them to make a better-informed judgement.

Matthew Liao-Troth, professor at the J Whitney Bunting College of Business at Georgia College & State University, told the Macon Telegraph that the software can give companies a better idea of "where your business is".

He observed that many firms are considering reinvesting in their operations due to signs of economic growth, but are unsure as to whether now is the right time.

Professor Liao-Troth said accounting software can aid this decision-making process by providing instant access to reports and ratios, while advising that companies pay particular attention to their quick ratios, which evaluates current assets excepting inventory divided by current liabilities.

"Analysing your books is not something you may enjoy doing, but there are some great opportunities in the economy right now. If you are well positioned, now is the time to move," he explained.

Last week, IT expert Pam Baker told SmallBusinessComputing.com that accounting software can also help smaller firms to cope with administrative issues relating to tax payment.

Posted by Jamie Rees