USEOFACCOUNTI

NGSOFTWARE
I
NTRODUCTI
ON
Account i
ngsoftwarehasbe comeav italneedt oanybu sine
ss.Busi
nessowners
havest artedtoreali
zet hatmanagi ngfi nancesmanu all
ywo u
ldnothe l
pthem
achi
evet heexpect
edr e
s ult
s.Inmanyc ases
,fi nanci
almanage ment,whichis
suppo
s edt obeabletohe lpc ompani
e smana get he i
rbu dgetsmoreeffici
entl
y,
hasbe comeo neoft her e aso
nsfo rfi nanci
allos s.Beforelearni
ngaboutt he
impor
t anc eof ac c
ount i
ng s oftware fo r bus iness
e s,you needt o first
understandwhatac countingmanage me ntis.
Ac c
ounti
ngManage me ntreferstostr ategicplanning,o r
gani z
ati
on,direc
t i
on,
and c o
ntrolo f financi
alp ro
cesse
s wi thi
n an o rganizatio
no rc o
mp any.
Ac c
ounti
ngmanage me nti
sc r
iti
cal
lyre quiredbyanybu si
ne sstoensu
r estable
cashflow.Accounti
ngmanage risrespo ns
iblefore s
timatingt hecapi
talne eds
andde ter
miningitsstruct
ure,cre
atingi nvestme nto pportunit
ies
,establ
ishi
ng
financi
alpol
ic
ies,hel
pingmakefinancialde ci
si
ons, ands oon.
ACCOUNTI
NGSOFTWARE
Acc o
unti
ngs oftwareisac lasso fc o
mp uterprogramst hate nabl
eyo ut o
manageyo urbu s
ines
s'sfinanc i
altransact
ions.I
tisat oo
ltohe l
pyo urecor
d
theflowofyou rcompany'smo neyande xamineyourfinanci
alcondi
tio
n.Withi
t,
youc anrecor
dt ransacti
ons,ge ner
ater eport
s,managec usto
me randv endor
contacts
,createp urchaseo rde r
s,t r
ac ks t
ockleve l
s,bil
lc ust
ome r
s,and
mo ni
toracc
ountbalances.
Ac countings oftwarear ede signedfo racc o
untingp rofe ssionalst omanage
acc ountsands i
mp l
ifyfi nancialop er
at i
onsino rganizatio ns.The yr angefr o m
simp l
e ,singl
e-entryp rogramsu sedfo rs tori
ngi ndividu alr e cord-k eeping,t o
mo readv ancedac cou n
t i
ngs ys temswhi chcanu sedt omanageac c
o untsp ayabl e,
acc ountsr ec
eivabl
e,l edge rs,i
nv oic
e s
,salari
e s
,ande v
e nc omp any’ sas se
t s.The
softwar eal l
owsbu sinesso wne rst otrackfi nancialtrans ac ti
o nsandi nst ant l
y
ge neratev ari
ousfinanc ialre p
o rts.Beforeac cou
nt i
ngs o ft war ecameo nbo ar d,
,financ ialtaskshad t obep erforme d manu all
y,u sing l arget rans ac t
ion
journals.Adho cr ep
o rtingwasbas i
call
yimp racti
cal,si
nc eac co untingman age r s
had t oc ons
oli
datee nt riesmanu all
y.Ac counti
ngs oft war eau t omat et hes e
tas k
s, reduci
ngac cou ntingc osts,ande nabl
ingbe tterfi nanc ialde c i
sionmak ing

1
t
hro
ughr
eal
-ti
mer
epo
rti
ng.
Accou nti
ngs oftwaremak esite asierforbu s
ine s
so wnerstomanagefi nanc
ial
procedu res
,p erformingfi nan c
ialt ask
sc orrectl
yandqu ickl
y.Ke e
pi nmind
thati tdoe sno tr eplacet her o l
eo f ac c
ou nti
ng manage rsino rgani
zi
ng
comp any’sfinance s
,bu tinsteade nhancestheirp roduct
ivi
ty.Wit
houtt hehelp
ofac c o
untings oftware,bu si
nesso wnersorac c o
unt i
ngmanage r
swi l
lhavet o
spend t oomu c
ht imec re
ating financialrepo rt
sand o therdo cumentso r
reconc i
li
ngbankac count sands tate ments
.Thiss oftwaregr e
atlyhelpsthem
gainc ompletevisibi
lit
yi ntothe i
rc ompany’sfinancialheal
th,sothattheycan
mak ewi s
erde ci
s i
ons.
Toacco
unti
ngp r
ofess
ional
s,acc
o u
nti
ngsoftwar ear
eco mpany’sval
uabl
eas set
thatsi
gni
fic
antlyhel
psi mpro
vet heeffi
ciencyo fthefi nancedepartme nt
.
Apartfro
mt hat,t
herear esti
llmorei
mp o
r tantbenefit
st hatthi
ss o
ft ware
prov
ide
s.

Typ
eso
fAc
count
ingSo
ftwar
e
Pl
eas
ere
fert
opr
evi
ousno
teo
nthi
s

Benefi
tso
fUs
ingAc
count
ingSo
ftwar
e
1
.Ens
ure
sFi
nanc
ial
Cont
rol
Acc ounti
ng s oftwar
e all
ows busi
nesso wnerst oc o
ntrolt hei
r finances
auto matical
ly,eventho
ughtheymayno tbeexpert
sinacco
unt i
ng.Wit
hal it
tle
training,theyc anmanageallac
count
ingo p
erati
onsusi
ngt hei
rc o
mp uter
so r
mo bil
ede v i
ceswitho
uthavi
ngt opaye xt
ernalparti
estoke e
pt hei
rbu dgets
unde rc o
nt r
ol.
2
.Sav
esCo
sts
Accounti
ng s o
ftware au tomate c or
e c alcu
lati
ons and admini
strati
ve
proc
e du
resaswe llastakescontrolofyourrevenueframework
,soyoudo n’
t
havet oo ut
sourc
eyo urfi nanc
ialmanage mentt oane xte
rnalpart
y.The
soft
warec analsoreducethec ost
sas s
ociat
edwi t
hp r
inti
nganddist
ributi
ng
documentati
on,sincealldataisdi gi
tall
ys to
redi nas afeandmo nit
ored

2
l
ocat
ion.
3
.Inc
reas
esDat
aAc
cur
acy
Accordingtoacc
ountantsandau dit
ors
,oneo ftheimport
antbene
fitsofgood
accounti
ngs o
ftwareisi tr educ
eshu mane rrorthatusual
lyoccur
sdu ri
ng
calcul
ati
onanddatae ntry.Inaccu
raci
esinfinanci
alstat
ementscou
ldleadto
cris
est hathaveani mpacto nyourbusi
nesslifespan,andtheac c
ounti
ng
softwarecankeeptheseiss
ue sfr
omhap pe
ning.
4
.Imp
rov
esDe
cis
ionMak
ing
Thisisoneo ft hemai nadvantagesofi mplementi
ngs ophi
sti
catedacc ou
nting
syste
ms .Wit ho
u tanau tomatedac c
ou nt
ings o
luti
on,youwi l
lhavedi fficu
lty
understandingyo urbusine
ssfinanci
alc o
nditi
on.Itprovi
desyo uwithnu mbers
thatc anhelpyo ufi gur
eo utwheret ocute xpens
eso rwheret oinv
es tmo re
.
Withac le
aro ver
viewo fyo u
rc urrentfinancialstate
,yo uwi l
lbeabl et o
devel
o psmar te
rs trate
giesandall
ocater es
ourcesmoree as
il
y.
5
.Imp
rov
esFi
nanc
ialDat
aSe
cur
ity
Financi
aldataisc o
mp any’smostc onfident
ialinformati
onandmu stbehighl
y
protecte
ds othatitdo esnotfallintot hewronghands.Anac co
unti
ngs ys
tem
ensuresyourfinanci
aldat aremainssafebys tori
ngitinac e
ntral
iz
eds ys
tem
thatispr o
tect
e dbyfi rewal
ls
.Thu s,onlythosewhoar egrantedacces
sr i
ght
s
cans e
et hedata.
6
.Tr
ackEx
pens
es:
Cashiskingforsmallbusi
nesses
.Thelastthingyouwantistofaceac ashflo
w
short
agebe cau
see xp
ensesareoutofwhac k.Accounti
ngsoft
warecanhe l
pyo u
preventthatscenari
obyau to
mat i
nge x
penset r
ac ki
ng.Wi
ththesoftware,you
canscanan drecordrec
eipt
s,aswellastrackmileageandexpens
esincur
redo n
behal
fo fcli
ents
7
.ManageI
nve
nto
ry:
Whe t
he ryour unaretails
t or
eo ro p
erateo nlyonl
ine,youne edtoke e
pt abso n
yourinventory.Youdon'twantt oruno u
to faho tse l
li
ngp roductorp u
r chase
onet hat'
slangu i
shedont hes hel
ves.Accou nti
ngsoftwar ecanhe l
pwitht hat
,
evenau to
mat ingtheorderingp ro
cess.Withac c
ounti
ngs oftware
,yo ucant rack
productssold,setreorderingt hres
holds,andr unre po
rtso nwhichitemsar e
3
do
ingwe
llandwhi
char
eno
tdo
ingwe
ll
.
Ot
herbe
nefi
tsi
ncl
ude
;
i
. Iti
mp r
oveseffi
ci
ency.Youwantt
obeabl
etoo
per
ateyo
urbu
sine
ss
aseffi
cie
ntl
yasp o
ssi
ble.
i
i. I
tauto
mat
esyo
ura
cco
unt
ing.Au
tomat
ionmak
esac
cou
nti
ngdu
tie
s
s
imp
le.
i
ii
. I
tsi
mpl
ifi
est
axfi
li
ng.
i
v. I
tpr
ote
ctsyo
udu
ringanau
dit
.

CHARACTERI
STI
CSOFACCOUNTI
NGSOFYWARE
1
.Fi
nanc
ialFo
rec
ast
ing
Thisisprobabl
ythemo stesse
ntialfeat
u r
eoftheaccounti
ngsoftware.Ever
y
businessownerc e
r tainl
ywant st obeabl etoesti
mat ethei
rr eve
nu eand
expensesright
.Forec ast
ingtool
she l
pt hemco
ntro
lfinanceswi
s e
ly,el
iminat
e
unne c
essarycos
ts,ando pti
mizeprofi
ts.

2
.Bi
ll
ingandI
nvo
ici
ngManage
ment
Advancedaccou
nt i
ngsoftwareall
owbu s
ines
so wner
st ocreate
,manage,and
sendvari
oustypesofbi
llsandinv
oice
s.E-inv
oic
e sal
ongwit
ht hei
rco
mp one
nts
canbec u
sto
mized accordi
ng tobu s
inessuni
qu eprefe
rencesand canbe
generat
edinthewinkofane ye.

3
.BankRe
conc
il
iat
ion
Bankreconci
li
ati
onisi
mportanttoens
u r
etheacc
uracyofyourfinanci
aldat
a.
Itcanbev e
ryt i
mec o
nsu
mi ngandpronetoer
rors
,ifdonemanuall
y.Butwith
modern Account
ing s
oftware,youcan reco
nci
le you
rbank ac cou
ntsand
sta
tementswithi
nafe wsecon
ds.
4
.Fi
nanc
ialRe
por
ting

4
Account
ingsyst
e msallo
wyo ut ogeneratedi
git
alrep
orts(i
nco
me,bal
anc
e
she
e t
,change
sine qui
ty,cas
hflow,etc.
).Youc
anals
ocreat
etheminmul
ti
pl
e
formats;t
abl
es,grap
hs,li
nesandpiechart
s.
5
.Pu
rchas
ingandSal
esManage
ment
Goodaccounti
ngs ystemsarege neral
lyint
egratedwit
hp urc
has
ingands al
es
management,all
owingyoutomanaget r
ansacti
onswhe
nev e
ryouwant.Yo
uc an
easi
lycre
atev ari
ou sdocu
me nt
ss uchasp urc
haseands al
eorde
rs,debi
tand
cre
ditnotes,
quotations
,rece
ipts
, andmanymo re.
6
.As
setManage
ment
Wit
hac omp l
exacco
untings yst
em,yo ucanevencalc
ulat
eas s
etdeprec
iat
ion
auto
matical
lyandac curatel
y.De pr
eciat
iono
fas setscanbec al
cul
atedby
var
iousme t
hodsaccor
dingt oyo u
rc ompanypo
lic
iesaswe l
lasappl
ic
abletax
andacco
untingst
andards .
7
.Inv
ent
orymanage
ment
Anac c
ounti
ngs ys
tem wi
ths t
ockandinv
entorymanagementcont
rol
sc an
real
lystr
eamli
neyourbusi
ness
,hel
pi
ngyouidenti
fywhatyouhaveinsto
c k
,
whatyouneedtoreor
derandwher
eyou'
respe
ndingyo
urpurc
hasi
ngbudget.
i
. Inv
ent o
ryt rac
king:Fo l
lo
wi ng the li
fec
ycl
eof an it
em – fr
om
purchasi
ngtostock i
ngtos ales
,allthewaytos
hip
ping–isagreat
ass
ett ohel
pyout racki
nvent o
ryleve
ls.
i
i. Setinvent
orylevel
s:Youc anensu
reyoudon'to v
er-oru nder-o
rde r
ce
rtainp ro
du c
tsbyu si
ngau tomati
co rde
ringt oguarantees t
o c
k
wi
thi
nas p
ecifi
edrange.Thiss
avesyo
ut hehassl
eo fno
thav i
ngitems
i
ns t
o c
kwhe nyo uneedt hemo raglu
to fp ro
ductsthatj u
stwo n't
move.
i
ii
. Spec
ifieds t
ockloc
ati
ons
:Fo rl
argedis
tri
buti
onhubs,havi
ngs tock
l
ocatio
nsi ncl
ude
do norder
sav oi
dsthe need fo
ran addi ti
onal
warehous
e management sys
tem,whic
h help
ss treaml
ine bu
siness
func
t i
ons.
i
v. It
emi mages:Theinc
lusi
onofit
emimage si
salsoadv
antage
o u
sfo
r
di
str
ibutor
s,asi tal
lowsal
lindi
vi
dual
si nv
olv
edint hepro
c e
sst
o
i
denti
fyp roduct
sv i
sual
lyandensu
ret hatthecorr
e c
titemsar
e
5
 be
ings
hip
ped.

8
.Payr
ollManage
ment
Payrol
lmodul
esaree xtr
e mel
ys o
phis
tic
atedinsomeac c
ou nt
ing s
yste
ms,
offeri
ngful
lpayr
olls
ervicesthatdoe ver
ythi
ngfromcal
culati
nghoursand
proc
essi
ngwagestopayingp ayrol
ltaxesandmak i
ngdeductio
ns.Hereare
someofthebes
tpayro
llfeaturesforacco
unti
ngso
ftwar
e.

i
. Vari
ablewagesche dul
e s:Whe theryoure mployeesaresal
ariedo rpaid
byt hehour,as ystemt hatc anac cur
at el
yc alcu
latewhatyo uowe
themi sess
enti
al.Pr oblemsar i
sewhe nyo uhav emanyi ntermittent
workersorpart-t i
mes t aff.So mee mployeesmaybep aidmo nt
hly,
othe
r sweekl
yorbi weekly, orasne e
ded.Yo ursoftwareshouldbeabl e
tohandlediffere ntp ays chedul
esalongwi t
hdi fferentt ypeso f
compensat
ion(c
o mmi s
s i
ons ,sal
arie
s,profitshari
ng,bonuses,etc.
)and
benefit
s(heal
thi nsur
anc e,reti
rementp l
ansande ve
np erkslik
ep aid
parki
ng).
i
i. Di
rectdeposi
t:Thi
si sesse
ntialforaccount
ings oft
waretosu
p p
ort
th
esedays,asmo stp eo
pleexpectthei
rp aycheckstobedeposi
ted
di
rectl
yintothe
irbankac c
ounts.Dece
ntac count
ingsoft
wareshoul
d
al
lowyoutosetupschedul
eddirectdepos
itpayme nts
.
i
ii
. Automatictaxcal
cul
ati
ons
:Thisrangesfr
omhandli
ngonl
yt hebasi
c
deducti
onstoprov
idi
ngsophi
sti
cat
e dtaxt
able
sandpri
nti
ngr e
lev
ant
forms.Findoutifthesyste
ms uppor
tsnew-hir
erepo
rti
ng,expe
nse
tr
ac k
ing,
i
v. Expenser ei
mbursementsanddeduct
ions:Ifyouremp l
oyeesi
ncurtax
-dedu c
tibl
ee xpe
ns e
s,s uc
hast rav
e lande nt
e r
tainmentexpens
e s
,
you'
llwantas ystemt hatcanaccommo dat
ethe s
er eimbur
sements
ande nsurethatpaymentscompl
ywithtaxdeadl
ines.

6
 9
.Payme
ntp
roc
ess
ing
Manyac c
ounti
ngsys
temsallo
wyo urc us
tomerstop aytheirinvoi
cesonl
ineby
cli
cki
ngabu t
tonontheelec
troni
cinvoiceyousendt hem.Theadv ant
agesfo r
thevendorar
emany,inc
ludi
nglessstafftimedevotedt opro
c e
ssingchecksor
mak i
ngbankdepo
sit
s,greaterse
c u
rityforp ayments,andfas terproc
e s
sing
times

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