Good accounting software is ideal for any business, regardless of size or industry.
Over the years, there has been an increase in the number of vendors offering accounting software for businesses. As such, this has made the rather simple task of choosing a well-performing accounting solution quite a challenge. Aside from the fact that the level of workmanship is different, there are vendors that provide better functionality compared to others. On the other hand, some offer better options when it comes to scalability.
Deciding on the right features and the ideal accounting software for your organisation becomes easier when one is aware of and fully understands why such a tool is important. Let’s take a closer look at why it’s important for your business to have an accounting solution in place.
What’s the value of accounting software?
There are those people who believe that getting accounting software for their business is not really important, or just “not for them”. What these people do not understand, however, is that using software solutions can be highly beneficial and actually help to increase productivity and minimise expenses. We’ve previously discussed how to calculate the ROI of your accounting software, but there are also other benefits to implementing a good and reliable solution.
Perhaps one of the biggest benefits is that it will allow your business to perform accounting tasks without having to hire additional accountants. Since the software is accessible by and can be easily used by anyone, even non-accounting specialists, you can ease the workload on your finance team and avoid having to employ extra manpower during busy fiscal periods.
Additionally, by using accounting software you’re guaranteed transparency and accuracy. A reliable solution is created and programmed to deliver data on time, calculate accurately, and avoid errors. As such, you’re guaranteed to get transparent and easily understandable progress of your company’s finances. This, in turn, will help you come up with programs and strategies that are specific to the needs of the company. Likewise, identifying how much and which resources are needed will also become an easier task.
As already mentioned, using accounting software can increase the productivity level of your business. As an all-in-one system, the accounting software performs the most essential tasks that help companies fulfil their daily goals. Aside from collecting data, particularly financial data, the software also organises and analyses all the information it gathers. It likewise helps make the accounting team’s work easier as the software usually comes with tax compliance features, particularly in those that are dedicated to payroll assistance.
An added bonus is, of course, customer satisfaction. Since productivity levels are increased, customers are more likely to feel satisfied. They will appreciate the fact that your company is fast and efficient in sending out invoices, billing reports, and other finance-related requirements. The accounting team does not only improve its productivity, it also becomes more credible—and this is what customers really look for and want.
Learn More: The Pros and Cons of Xero Accounting System.
6 Essential features to look for in your next accounting solution
Now that you understand the benefits offered by high-quality accounting software, it will be much easier for you to determine what type of solution your company will need. To ensure that your company gets reliable and efficient accounting software, one that will really accelerate your company’s growth and achieve its goals, we’ve gathered six essential features to watch out for.
Generally speaking, accounting software is designed for any user. But it’s still important to make sure that the one you choose is under-friendly, intuitive and can be used by anybody in your team – even those who are not accounting or tech-savvy.
In addition, your choice should also be flexible and highly functional. We recommend options offering multi-dimensional reporting features, this means that your team can come up with reports that are customized according to your company’s needs and targets.
Integrate billing and invoicing features with inventory management
Accounting systems will have different basic functions, and almost all of them will offer basic billing, invoicing, and inventory management. However, if you have all of them integrated into one system, you’ll be able to cut a significant amount of time transferring or migrating data from one system to the other.
Identify and prevent errors
Accounting solutions can bring accuracy and efficiency to your organisation. This means that errors can be minimised, if not eliminated altogether. As such, the software you choose should have features that automatically check for errors (dynamic ones). For example, when someone places an order for a product that is currently out of stock, the system can identify the action and send an immediate alert.
We also recommend looking for features such as automatic calculation, which are essential in preventing users from making errors.
Easily connect with stakeholders
Your company needs accounting software that makes it easy for you and your finance team to coordinate with customers, banks, and all stakeholders. Documenting and checking accounts, bank statements and balances, monitoring and managing credit, and tracking payments and due dates with suppliers and customers are all essential factors in proper accounting management.
Secure sensitive data
Financial information is sensitive data, and it should never fall into the wrong hands.
With this in mind, choose accounting software that provides complete and solid security features. Purchasing from reliable vendors – one that has a trustworthy reputation in the industry – should also be a top priority for you.
Look for user-based access features, as this is always a good security measure. This means that the software can only be accessed by you and those in your finance team with a permit. Additionally, their access is limited only to what their tasks are. In other words, the person assigned to payroll management will only have access to data relevant to payroll needs.
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