With the advent of technology, almost every aspect of business has evolved drastically. Machines and systems have taken over much of the work, that had to be done manually. This has led to greater ease and efficiency. Add to that, the innumerable capabilities technology has brought to the fore, which were not humanly possible.
The one aspect of business that has been changed much due to machine automation is accounting. The traditional image of accounting brings to mind the picture of a middle aged guy, with spectacles loosely placed over his nose, going through tonnes of papers, and making notes manually, just to make sure every entry is recorded and verified. Well, in the space of a few decades, that guy has been replaced by tech savvy, keyboard slaying youngsters who can feed and analyze data worth of a million pieces of paper in seconds, and present them in easily comprehensible form, at their fingertips.
However, blindly choosing your accounting tools can end up creating more problems than solutions. Therefore, it is imperative that you evaluate your accounting software, before you entrust it with valuable financial information, related to your business. Your accounting software must also have the right features that can assist you in making those crucial business decisions.
Here are a few ways, in which the right accounting software can help you in your business’ growth:
#1. Accuracy of information
The importance of accurate data keeping can never be overstated, especially when the data is financial in nature. Humans are prone to errors, be it in calculation, or transfer of information from one account to another. Good accounting software can eliminate those errors, making sure that the records are correct and coherent. It saves a lot of man hours that go into tallying and error correction.
# 2. Ease of access
One very important feature that modern accounting software have started offering is that they are hosted over cloud. This means that the data is accessible, independent of where you are, or what computer you are using. All your accountant needs are his login credentials. Once that constraint is eliminated, the speed of work done multiplies.
# 3. Security
One of the persistent predicaments for an accountant is the fear of theft of data. With physical books, or even with data stored locally on excel, or other numeric tools, safety is always at risk. That is where modern day accounting software come in handy. You need to carefully choose software that keeps your data encrypted, and doesn’t access it without permission. With safety of data intact, you’ll see the worry lines on your accountants’ forehead, disappear in no time.
# 4. Reporting
We need to understand that just keeping raw data, is of no use, unless it can be translated into easily presentable, and understandable information. A good accounting software does just that. It can give you whatever information you need, in a format of your choice — graphs, pie charts, manhattans or simple tables. Uncomplicated representation of data helps managers make better analyses, resulting in swift and apt decision making.
# 5. Linkage
No business in today’s world operates on its own. There is, always, a large number stakeholders involved, from vendors and suppliers to clients, employees and even financial institutions like banks. A good accounting software will help you link the right accounts, to save you from having to make multiple entries for the same transaction. For example, if all your customers make payments to of a particular bank account, then a payment entry in the customer’s account must automatically reflect in your bank’s account as well. This not only helps you manage flow of money more accurately, it also helps you identify erroneous transactions and rectify them
# 6. Taxation:
Paying, or even keeping track, of taxes is a big headache for accountants. But this pain point can be eradicated with the use of an accounting software such as Giddh, that helps you calculate, manage and pay your taxes. In the long run, it can help you avoid penalties, and keep you in the good books of the authorities as well.
# 7. Payroll management
Payroll management is an important feature of accounting software that involves everything from calculating the pay of employees to processing and distribution. With accounting software, these tasks can be automated so that your valuable time could be invested in something more important. The payroll functionality of the accounting software will ensure that you don’t spend too much of your resources on calculating taxes, writing cheques, or scheduling deposits. Consequently, this feature could be quite useful especially when your business is growing or your employee base is increasing. Cloud accounting software helps you keep track of billable hours and have a complete overview of salary dates and payment due dates.
# 8. Billing and invoicing
With this feature of accounting software, it is easy to create and distribute professional-looking invoices as well as carry out more advanced sales tasks. It helps your enterprise take care of a wide range of recurring transaction types including contract and subscription-based services. Billing and invoicing is an important feature to have in your accounting software because you will have a lot to manage and process when your customer base grows along with the volume and variety of sales. An important feature of computerised accounting software is automatically generating recurring invoices that saves business owners precious time and helps them focus on company growth.
# 9. Expense Management
Expense management enables you to submit, process and track all your work-related expenses. Your business can use this feature of financial accounting to customise the expense reports so that you have a holistic view of how your financial resources are being utilised. Growing businesses have growing expenses as well. Accounting software will give you a way to track these ever-increasing expenses. Besides, it will also offer a detailed analysis of the expenses which can be used to discover any investment and cost savings opportunities.
# 10. Multi-currency Support
The multi-currency support is a crucial function that enables automatic conversion between currencies. This online accounting feature also allows setting specific preferences according to the customers so that international transactions can be seamlessly made irrespective of the currency. With the multi-currency support, you can expand your business confidently into international markets. As conversions and reporting can be automated according to the latest exchange rates, all of the guesswork and uncertainty associated with foreign transactions is entirely removed.
Apart from these, there are multiple features like invoice generation, filing etc, by whose virtue, modern accounting software can help you in the smooth functioning of your business. The gist of the matter, though, is that one must adopt appropriate accounting software if they wish to do away with ailments that have traditionally shackled the accountants, and hence, propel their business forward.