Today, professionals in different industries use accounting software to great effect. The use of accounting software not only generates significant benefits for a company in terms of productivity and efficiency but also considerably simplifies and streamlines various aspects of a company’s accounting function. Accounting software can take you beyond the simple and rudimentary functionalities of standard spreadsheets. Most platforms have user interfaces developed specifically for accounting transactions, like receivables and payables.
We will discuss some of the advantages and disadvantages of this type of software in detail. We will also provide you with examples of some of the best accounting software.
What is Accounting Software?
It is essential to first define what accounting software is. The good thing is that many experts agree on the definition of accounting software. This is different from other fields or other software where there is a lack of consensus on the definition. Accounting software is a collection of applications that are designed and developed to gather, record, store and summarize, financial data for interpretation. These programs and applications are meant to minimize the effort users have to make in computing data. We can also say that the accounting software meets very specific criteria. And, to choose your ERP software, download our guide on the 10 selection criteria for a new ERP software.
Keep in mind that accounting software is primarily intended for professionals, and, hence, they are ideal for businesses of all sizes. It is important to remember this point. Also, note that most accounting software help with the following:
Creation of Invoices
With accounting software, you can create an invoice for each of your customers. You can also include legal notices and any specific details that are pertinent to each customer. Isn’t that great!
Creation of Quotes
With accounting software, you can generate quotes, and these quotes can follow a specific legal format if you want, which is very convenient.
With this feature of the software, you can allocate, manage, and prepare your budgets. Here is another great thing. You can manage both inputs and outputs. You will find these three features in most accounting software.
Are you still considering whether or not you should invest in accounting software for your company? Using accounting software, you will be able to get various benefits. We have discussed them below.
Top Reasons to Use Accounting Software
As we have discussed, accounting software offers you considerable help in managing your company’s accounting tasks. Here are some key advantages of using accounting software in your organization.
Accounting software will help you improve the productivity level of your company. An employee using accounting software will work in a more organized and efficient manner. And that is not all; you can also delegate specific tasks in order to increase the productivity of each employee who uses the software. In short, it is a significant asset and can improve the day-to-day production of your accounting department.
Generate Audit Trails
Accounting software generates financial reports. These reports contain information on company finances, various financial activities as well as profit and loss statement. These accounting software applications also generate reports of project, and general ledger listing, among others.
Keep in mind that improvement in productivity translates into time savings, and the effect can be substantial for your company. With accounting software, you can ease operations and use automation to your advantage. As the sheets, invoices, and quotes, will often be pre-filled, you will only have to enter minimal information. This will help you expedite your projects and complete them on time. This will improve your company’s bottom line.
One of the underestimated features of accounting software is its ability to help with predictive analysis. For example, you can use the program to predict the movements of funds, and the increase or decrease in your accounts receivables. As a result, you will be able to develop an effective strategy thanks to your accounting software, which will likely open new possibilities for your business.
It is no secret that having an accurate and updated record of your finances is vital to monitoring the progress and performance of your business. By leveraging the best accounting programs and solutions, you can simplify and streamline aspects of accounting that can be prone to mistake and human errors. Many software programs can automatically and quickly make calculations while you enter data, adjust assets, and transfer funds, making your job less complicated.
Develop and Grow your Business
Because of the fantastic organizational features of the accounting software, you will be able to manage your budget and funds at all times. Leveraging its predictive analysis features, you will be able to anticipate your financing needs and arrange funds at any time. In other words, professionals using accounting software are more likely to develop and grow their company much faster than others.
Enjoy More Flexibility
With the right accounting software, you will also have incredible flexibility. You will be able to manage your finances at any time, from anywhere.
Security is an essential feature of any solution. Most accounting software on the market can be password-protected. Thanks to suitable applications and encryption methods, your data will be safe and secure at all times. This is another reason that makes accounting software a highly favorable solution, and professionals prefer it.
All of the above features in accounting software will allow you to streamline the different facets of your accounting function.
Some Leading Accounting Software
You will find several types of accounting software on the market. The software you will choose will depend on the number of employees you have and the kind of company, such as an SME, you own.
Software for SMEs with Five to Ten Employees
For SMEs with five to ten people, software, such as Acomba and Quickbooks are essential. Many businesses prefer the latter for several reasons. Some of them are its ability to address the needs of small businesses and even sole proprietorships.
Quickbooks is affordable for most businesses, as it will cost you only €5 to €10 per month for the basic version. This is also known as the Simple Start version. There is no denying that this software is one of the best in the industry, especially as its interface is one of the most visual and interactive interfaces on the market. With its simple management, bank synchronization capacity, and multi-currency management, you will be able to take your business to the next level. There is no doubt that it is a must for small and mid-sized businesses, and is ideal for freelancers as well.
Companies with Ten or More Employees
If you run a company with ten or more employees, you will look for better management features in the accounting software. Some of these features can be payroll management and accounting entries. You may also look for features, like quotes and invoice processing. If you are looking for these features, then Dynamics 365 can be a great solution for your company. This is especially true if your company has ten or more employees. And the great thing is that with its Business Central version, you will be able to achieve a lot more.
If you choose Dynamics 365, you will benefit from extraordinary flexibility, and this will give you the chance to optimize your supply chain, increase your sales, and even finalize your projects within the allotted time. This is a very professional and affordable solution for companies with pressing accounting needs.
At the end of the day, you have a lot of options when it comes to choosing accounting software for your business, and these are only some of them. The most suitable software for your business will depend on your situation and your business accounting needs. For this, you will have to take into account the size of your business (whether your business is local or international) and the number of employees you have. You will have to consider these factors as they will help you determine which software is best for your business.
Accounting software, regardless of the specific product you choose, will offer you various benefits, particularly in terms of productivity, efficiency, automation, and flexibility.
And while some software solutions will be more suitable for employees and finance teams that handle simple accounting tasks, other, more sophisticated solutions will allow you to go a step further. For example, you can manage large-scale projects, where the management of funds and capital is crucial for your business. Of course, the price of these software packages will often be higher.
We can say that accounting software is one of the essential elements that will help you manage your business, especially the accounting function. With their organization and their ability to improve financial management, these solutions provide managers with the appropriate tools to manage cash inflow and outflow.
These accounting software platforms will allow you to create detailed, updated, and accurate records while concentrating your efforts and time on the most crucial aspects of your business. Also, these applications are great as they allow you to easily and quickly generate reports so that you can make the right decisions for your business at the right time. Need help with your ERP software implementation? Discuss your project with a ERP expert.