Accounting, the process of reporting, summarizing and analyzing business transactions and keeping track of the expense and income strongly demands the usage of accounting software. Using accounting software, the organizations can access their benefits, cash flow, liabilities, sales, purchases, cost management, analysis and transaction. From understanding the entire accounting scenario to developing strategies plans for the organizational benefits, it is all possible with an excellent accounting software.
Small businesses use accounting software to see their profits and costs involved with their accounting tasks as well as to manage their accounting activities. The larger organizations use customized accounting software to manage accounting, that also works according to their evolving business needs. The software helps to deal with payments, invoicing, sales reports, profit and loss and every other activity related to accounting. Unlike traditional accounting methods that demanded huge manual tasks and paperwork, accounting software runs on automation and technology.
According to the reports from Statistica, 64.4% of small businesses use accounting software for their accounting and finance work.
In the USA alone,30.2 million businesses use accounting software and are looking forward to the adoption of accounting software. Reports from FinancesOnline states 20.4% businesses want cloud-based accounting software and 19.7% businesses want on-premise accounting software. The larger businesses are 41% more into buying cloud based accounting software to control their accounting needs and let their accounting firm thrive.
Main features of accounting software
Accounting software has different uses and different features that makes them different yet similar with each other. All of them work towards simplifying the accounting tasks, but here are some of the common features of accounting software.
- Invoice management
The accounting software makes it possible for businesses to create, send and receive different types of bills and invoices automatically. They can prepare customized electronic bills, e-invoices, custom those invoices and perform those tasks without human involvement and no paperwork. The businesses can prepare bills and invoices according to their customer needs or personal preferences.
- Management of assets
The businesses can even calculate asset depreciation automatically and accurately with a complicated accounting system. According to their corporate policies, as well as applicable tax and accounting standards, depreciation of assets can be measured by different methods.
- Sales management
An advanced accounting software allows management of sales and to calculate transactions. It is possible to create receipts, quotations, credit and debit notes, sales and purchase orders using accounting software. The businesses can calculate their yearly, weekly and monthly transactions easily with the help of accounting software.
- Financial reporting and forecasting
The accounting software allows businesses to create financial statements such as digital reports, income statements, balance sheets, cash flow statements, ect which keeps track of every penny spent during a period of time. The reports and statements can be created in the form of pie-charts, tables, or any format they want.
Every business needs to have a check of their total estimated revenue or income at the end of the year. An accounting software helps to know these expenses and revenues. With the help of forecasting tools, they can control finances, monitor expenses, optimize profits, predict losses, and eliminate any possible risks involved in their business operations.
- Bank reconciliations
Bank reconciliations demand a lot of time and the error possibilities are higher. An accounting software with its availability can handle bank reconciliations easily without any requirement of manual efforts. The businesses can reconcile their bank accounts and statements using accounting software with much ease and accuracy.
Since accounting software has abundant features, most of the businesses prefer to choose at least one accounting software for themselves. Something that makes them much more efficient is the presence of cloud into their functionality. A report says that 58% of large companies utilize cloud accounting in their operations and 67% of accounting professionals use cloud accounting for increased productivity in their workspaces. This very much clarifies that the need for cloud based accounting software for accountants.
Benefits of accounting software:
- An accounting software helps in accurate cash flow monitoring. With automatic and computerized bookkeeping, it’s easy to prepare insightful reports and monitor every amount spent.
- Manual processes involve a lot of mistakes and errors. Having an accounting software that can do all the work without any error is a bonus for the business.
- With an accounting software, you can get the exact customer status which helps you decide which customer owes you and vice-versa. The accounting software helps in creating automatic invoices thereby marking your benefits and losses.
- An accounting software helps in automatic inventory tracking. It also let you know when you are out of stock or when you have extra products at your inventory.
- Accounting products help you to centralize key business processes and tasks such as customer relationship management, payroll, invoicing, inventory management and more.You can use one package for all these tasks instead of investing in separate software solutions for each process.
An accounting software whether it is QuickBooks, Sage or any, the businesses are loaded with benefits such as easy tax compliance, preparing actionable reports and much more. Accounting software hosting, for example QuickBooks hosting, provides users the benefit of remote accessibility, any device access and additional security. Als, the hosting providers manage everything and the businesses don’t need to care about the maintenance of the software.