Accounting Software

Overview

An Accounting Software is designed to provide an online platform to manage all the accounting activities of a business. This software helps an organization by integrating various data from different departments and allowing accountants to work in collaboration. The main services provided by these software include accounts handling, general ledger, bank reconciliation, billing & invoicing, and tax management. This software is very beneficial for any organization as it helps them save crucial time and money.

What is Accounting Software?

Accounting software is a well-developed computer program that helps bookkeepers and accountants in recording and keeping a track of the company or the firm’s financial transactions. Usually, the working of the accounting software depends on the type of product that you will use. Most important firms choose to use a customized solution that allows the integration of a large amount of data and records. Smaller firms, however, choose to work with account software that is available to them from the internet.

Why use Accounting Software?

Efficient:

If you would like your business to work efficiently, you will have to take up the most efficient accounting software out there, based on the job you are required to do. Most accounting software allows you to complete your bookkeeping in a few clicks. All that you will require is an internet connection. It will also store all your information in one place, so you will not have to refer through previous transactions. There will be no waste of time digging through spreadsheets and unnecessary paperwork.

Auto-accounting:

Automatic accounting can really make your life a lot easier. Auto-accounting software can add, add statements, generate invoices, etc. This can save you a lot of time and provide you with an accurate calculation, as compared to accounting done by hand. With accounting software like this, the platform for errors is minimal and you can get your job done faster.

Tax filing made easy:

Accounting can be tough at times, especially when you find yourself surrounded by disorganized receipts. This can get you into all sorts of trouble like fines and penalties and in worse scenarios, even legal action. Accounting software can help you avoid these mishaps. It helps in keeping your business transactions in an organized manner. Your receipts can be stored in one place and will be easily accessible. What’s more, when it comes to returns, your tax preparer can gain easier access to your books. Thus, you will be spending less time and fewer risks in your work.

Audit protection:

The job of auditors is to check your books for the correct information that you record. If you slip, they may reprimand you and you will have to deal with heavy casualties. This can be avoided easily through Accounting Software. There will barely be any errors that can get you into trouble. This software helps in preventing IRS red flags, thus avoiding auditors on the go.

Pre-planning made easy:

Accounting software helps you in planning ahead by tracking your financial history. You can track your previous income and compare it with your present income and savings, therefore setting up financial and business milestones for yourself to overcome.

Top Features of Accounting Software

Accounting software comes with features that will help you in keeping track of your records with ease. Listed below are the top features that you must look to when picking your accounting software.

Core Accounting:

Accounting Software must contain the basic functions- general ledger, account payable and receivable, fixed assets, and bank reconciliation.

Invoice and Billing generator:

Good accounting software must not be the one that just prepares invoices, but also does a complete round of tasks that will help you get through the accounts and finance.

Budget preparation and result forecast:

A common feature offered by Account Software is the ability to calculate and interpret finance performance for the current year all the while managing and estimating the budget for the upcoming year, using the data of the previous years. This is very helpful for the company to pre-plan its finances.

Managing salaries and payments:

Employee payrolls are important and Accounting Software will help you through it by preparing the cheques for their payments. It will also help you through the legal and tax commitments without silly errors.

Top Use Cases for Accounting Software

Industry-level use cases

Retail Industry:

If you choose to work in the retail industry, you will have to prepare yourself for frequent auditors and data updates on a daily basis. You are going to have to check and re-check your work every time you leave your workplace. Keeping the revenue and expenses to the tee is very important to the retailer, so to overcome the stress that comes with this job you may choose to rely on accounting software. These will keep track of your receipts and expenses.

Hospitality Industry:

It is no news that the hospitality industry has to keep track of its accountants and books. Submissions of financial reports to the managers and sudden auditors are the usual thing. The industry work on thousands and thousands of transactions each and every day. It is in cases like these where accounting software is a must to keep track of billings, payrolls, revenue, and daily expenses.

Educational Industries:

Colleges, Universities, and Schools have a large amount of staff and hence keeping a track of the payroll can be rather tedious. It is in this case that Accounting Software comes in handy. It keeps track of the salaries and wages, and also maintains the funding and the revenue of the institutions.

Functional level use cases

Accounting software helps in the billing and invoicing of various business sectors, as it is less tedious and accurate. Moreover, it does it within a short amount of time hence helping the business company with more time to gain more profits. It helps out in banking work, and in keeping track of expenses. Accounting Software also offers other methods of payment like credit card payments, online bank transfers, and Net banking. It helps the retailers in maintaining the billing and revenue of the store and keeping track of the staff payrolls.

Buying Considerations

Pre-tests:

Accounting Software allows a one-month trial period to test out the software before you make the purchase. Take advantage of this to get to know your software better.

Check out the features:

Check out the features before you make the purchase. Make sure that the software provides you with the features they have guaranteed in the advertisements.

Attains to your work:

Make sure that the features you opt for are the ones that will make your work easier in the workspace. The features you set out for, must be the ones that come in handy while accounting.

Making the final decision- Choosing the right Accounting Software

Always keep the required features in mind while taking up the test period. It is at this time you will get to decide if this is the right accounting software for you. Accounting software is very useful when it comes to the world of billing and bookkeeping, but life becomes so much easier when you’re working with the right software.

Features