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The Importance of Accounting Software in present times
December 19, 2020

All you need to know about the Accounting Software

What is accounting software?

To fulfil the financial needs of the company accounting software has moved in that is used by accounting professionals. It takes into account every aspect of the finance be it invoicing, tax compliance, statements of income and expenses, balance sheet and payroll, cash flow analysis and many more. Accounting software makes it all easy for you; it enables the efficient processing of transactions related to finances. Automation of the process leads to many benefits, the most important and evident being the reduction in staff who previously were engaged in manual handling of data that can be a cause of errors in the records. It gives you a ride through the finances of the company at a quick glance and helps in creating budgets for the future. 

Features of Accounting Software

Billing: With the inbuilt features in the accounting software the billing process and generating invoices becomes easy.

Payroll: A comprehensive handling of payments to the employees is made uncomplicated and undemanding. There is also

payroll accounting software designed specifically for the task that handles salary, deductions, taxes, leaves, overtime payments, and others. 

Reporting: Creating reports like income statements, cash flow, balance sheets and others can be easily done with the accounting software that forms the basis of the financial statements.

Bookkeeping: Bookkeeping is yet another milestone that can be easily achieved with the accounting software and makes the task of sales and purchases ledger easy.

GST calculations: Calculating is a complex process and this can be done easily with accounting or GST software. GST billing software free download is easily available on the net and that can solve all your worries regarding GST calculations. 

Advantages of the accounting software

Automated software that takes care of all your financial needs is filled with multiple advantages that can make your life easy. 

 

  • Data entry process made fast and easy with accounting software
  • It gives you access to comprehensive and in-depth reports 
  • Helps in better understanding of the financial matters
  • Helps in making better decisions in relation to the company’s present and future
  • It helps in the reduction of error in the data due to manual entry
  • It helps in completing the work faster
  • It gives a lot of time for invoice approvals and disbursements of cash and thus saves a lot of time.
  • Due to the reduction of staff, a big amount of money gets saved
  • As all the financial data is on the software, it becomes easy for other departments to access it due to a centralized accounting system 
  • It helps in the scalability of the organization with each passing year.
  • Storage of company’s data securely
  • Easy integration with e-filing and online banking
  • Automation of tasks makes accounting a smooth process

Benefits of accounting software

  • Simple and fast way for data entry
  • Due to a reduction in human error, the accuracy of data improved
  • It leads to better collaboration among the departments as the data is centralized and all the departments have easy access to it.
  • It also helps in reduction in operational cost as the need of employees for accounting tasks decreases. Moreover, you do not need to outsource the bookkeeping
  • The software has all the financial data compiled at one place and thus the tax compliance is made easy
  • The productivity of the employees increased due to the reduction in extra work that was done before manually
  • As the financial reports are accurate and acquired timely, it leads to better decision making for the company. 
  • Approvals become quick and better with accounting software as the data is more clear and com[piled in a better manner
  • Data of inventory can be easily organised and keeps you updated with the existing stock

The latest trends of Accounting Software

Security of Data: 

Security of data has become a big challenge in today’s world with an increasing number of fraud cases for personal benefits. This can be met with the coming of new trends in accounting software and more investment in data encryption. 

Blockchain: With the coming of blockchain, the way Financial records are stored will undergo a big transformation. This can be a big risk for the existing software as it will become obsolete.

Cloud-based App: The Cloud-based apps are the new trend that is occupying the market very fast as it is the best way to keep big data and have access to it in the cloud.

AI Automation: Artificial intelligence is replacing the traditional way of accounting as it makes the work easy, fast, and accurate leading to bigger benefits to the company. 

To Conclude

With the above-mentioned features, advantages and benefits it becomes clear that the accounting software is really good for the companies as it not only makes the complex task of accounting simplified but also contributes in the success and growth of the business in the long-term.