If you establish good accounting practices and get into steady habits, you can reap a lot of benefits:

• Keep your customers happy. Have you ever gotten a reminder for a bill you’ve already paid? You likely thought twice about doing business with that company again.
• Keep your staff happy. Running out of money for payroll is a good way to lose employees. It can also get you into legal hot water.
• Save yourself a lot of stress and money. The business bookkeeping records that many proprietors throw together right before the tax deadline can contain hundreds of dollars of costly mistakes.

Not all accounting software is created equal, and it’s very important to understand your business’s needs before investing in a certain one. At minimum, answer these three questions before choosing the best accounting software for your sole proprietorship:

1. What accounting functions do I need to handle?
2. How often will I use my software, or reports from my software, to make business decisions?
3. What do I envision for the future of my business?

Your accounting software should be able to grow with you, which will save you the hassle of switching accounting software down the line.