However, the most important question that crops up in the owners mind is, why should I switch to automation and buy software?

Many organizations stay with their current accounting system too long. It's comfortable to use something that's known and understood. There's usually fear involved (or atleast a strong apprehension) with switching to something new and unknown. Plus, there are significant time and resource issues, including the cost to change and the time needed to learn the new system. But comfortable doesn't always cut it — especially when it comes to the financial health and long-term success of your business.

In order for a system to meet your business needs, it should mesh with your existing business practices and adapt to technological innovations. Ideally, you want software that's simple, intuitive, and closely matched to how you already do business. The system can:

• Customize easily to fit the special needs of your business.
• Scale to the changing size of your business.

The price of automation is generally perceived to be high. However this is changing fast with the emergence of new, efficient and relatively cheap accounting and inventory softwares.

Such software also help owners get a good picture of the sales forecast, stocks in the inventory, and some softwares pinpoint to what are the least profitable services in your business. With your accounting software, you could handle some bookkeeping tasks that you might otherwise outsource. That can save you money, especially if you don't have significant bookkeeping needs and if you have someone who can handle bookkeeping tasks in addition to other duties.

Using accounting software enables businesses to:

• Purchase Cross Check
• Re-Order Management
• Maintain an accurate inventory making orders and deliveries easier
• Keep on top of the bank balance
• Monitor receipts and payments
• Quickly chase outstanding debts
• Plan cash flow and monitor actual against forecast positions
• Interpret business and trading conditions
• Provide business information to back up requests for finance

If your existing system isn't fulfilling all those objectives, it's time to seriously consider a new one.

The 21st century business has come a long long way from that. Today we plan, we strategize, we do market and customer survey, then we invite investments – we take loans from banks, we do cross geography purchase and sales, we have post sale services, we have supply chain management, we have business risk assessment, we have accounts that need to be audited, we have forms that need to be filled, we have orders that need to be serviced on time. And then there are tens and hundreds and thousands of vouchers that need to recorded and approved and retained and MISs to be generated and stock to be managed and employees who have to recruited and managed and paid at the end of every month and taxes that have to calculated and paid before their respective due dates. Accounting and Inventory software can be as simple as a book keeping tool or as complicated as a multiple place of work supporting - real time processing - Enterprise Resource Planning tool. The type of Accounting and Inventory software that a business uses depends on its size and industry and geography of functions but what remains constant is that for a business to survive, this accounting and inventory software is inevitable. It is the backbone that keeps the business standing. It is one item which is no longer a luxury.