emergency box and money

Reasons to Build an Emergency Fund

An emergency fund is important for every family or individual. Apart from the normal savings, it is still important to have funds set aside for an emergency. An emergency fund should be accessible whenever you need it.

The size of the fund is not standard, and it will depend on your income. Financial experts say that your emergency fund should be able to sustain your lifestyle for at least six months in case you stop getting your normal income. If you do not have an emergency fund, then here are some reasons to consider building one:

Loss of Job or Income

It is important to build an emergency fund to take care of the loss of a job or income. In case you lose your job, you still need to meet your bills like rent and other expenses. An emergency fund will help you in meeting these expenses and make sure that you still live a decent life even without an income.

With a good fund, you should be able to live comfortably for some months before you finally get a new source of income. Having some money to sustain you for a few months is okay, but there are still some people who have an emergency fund that can go for years.

Meet Health Expenses

An emergency fund will help you to meet health expenses. The medical issues might not cover some health expenses. For instance, dental, medical bills can be very expensive, and you need to look for a way to pay them. Instead of using your normal income to pay for such expenses, an emergency fund can save you.

Repairs

notes and coins in a jarSome repairs come unexpectedly, and you need to pay for them so that you can continue with your life. For instance, in case your car needs repair apart from the normal service, you need to use the emergency fund. Repairs in your home like plumbing, roofing and other areas of the home might be expensive, and the emergency fund will cover it without affecting your other bills.

Emergency Travel

In case you need to travel on short notice, an emergency fund will take care of your expenses. The fund will help you cover flight tickets and any other expense that you might incur during your trip. Traveling can be very expensive, and the last thing that you want is to use your regular income on the trip.

accountants at work

Advantages of Using Accounting Software

Every business needs to consider using accounting software. The role of accounting software is to make the processes in your business smooth and automatic. There are many types of software depending on your business and features. You have to make sure that you find one that will simplify your business activities.

For instance, if you need to give invoices and receipts to your customers, then the software should help you to incorporate these activities. Using accounting software is one of the ways of embracing technology, and every business should put it into consideration. Reasons to use accounting software:

Accuracy

accountant making calculationsAccuracy is very important when it comes to accounting work. Doing accounting work manually means that errors are bound to happen at some point. Errors in accounting work can be very detrimental because they can cause losses to be business.

To promote accuracy in the work, using software is the right way to do it. The software does all the computations, and this means that human error is eliminated. Reducing errors in accounting work is one of the ways of making the business grow due to improved efficiency.

Fast

Using accounting software makes accounting work fast. Using software will reduce all the work that you have to do manually because most of the tasks will be done using the computer. Being able to complete tasks fast translates less work to your employees.

You also do not need to hire a lot of employees in your accounting department because you will not have a lot of work to do. Speed in your workplace will help you serve employees better.

Record keeping

computer, calculator, graphsWith accounting software, you will have a good record for your accounting data. You don’t have to worry about a lot of paperwork that comes with manual accounting.

All your records are automatically saved on the software, and you do not have to worry about lost data. In case you need to retrieve an invoice for a particular client, all you have to do is to go to your software and all the records will be there for you.

Secure

Using accounting software makes your accounting records secure. This is quite different from storing data on files that can be easily by unauthorized persons. If you have software in your business, then all your employees will use passwords to access the system. Limited access means that your records will be safe from malicious users.