Collecting, recording, calculating, keeping track and then analyzing a business’s transactions accurately and efficiently is a vital part of business, whether small, medium or large, yet especially in the world of small businesses and start up businesses.

Fortunately, there are accountants available who can do the accounting manually for you and there are a myriad of accounting software for businesses available that are able to complete accounts chores faster and more efficiently than is possible manually. Moreover, with the increased availability and competition in the accountancy services market, nowadays, web accounting software has become affordable enough to be used by small businesses.

With the help of a well-managed accounting system or an online bookkeeping and online accounting programs, businesses will be able to accurately record, keep track and organize their most important business transactions and easily obtain reports with regards to their cash flow, balances on key accounts, and their overall financial position at any given time. These elements of business are very important regardless of a company's size, as well as can be of help in resolving or reducing the risk of reporting financial inconsistencies, errors, fraud, and tax problems to financial managers, investors and tax authorities.

In addition, a well-implemented streamlined accounting system also makes it easier to access financial statements for making the necessary reports, predict cash flow, maintain a budget and forecast revenue as part of a financial projection or analysis. Also, as accountants and software typically record all incoming and outgoing transactions, maintain consistent records and create financial statements, financial analysts and other members of an organization will now find it easier to interpret the data and use it for various purposes as well as reduce problems with tax authorities and the IRS.

Thus, businesses of all sizes that have established an accounting department or accounting system will now be able to prepare important financial statements each quarter and gain an objective view or "snapshot" of their financial situation. With these accounting systems, decision makers will now be able and better equipped to make informed decisions for investments, purchases, sales and other financial operations involved in running a business.

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