What are the Benefits of Accounting Software for Your Business?

Today’s accounting software has become a vital requirement for every business. Business owners are beginning to realize that managing finances manually does not help them achieve the expected efficiency. Financial management that should be able to help companies manage their budgets more efficiently is even one of the factors causing losses. Business owners are beginning to realize that managing finances manually does not help them achieve the expected efficiency.

If you are currently thinking about automating financial management in your business, this is the right article for you. Before deciding to use accounting software, it is better if you understand its functions first.

What is Financial Management?

Before learning about the use of accounting systems for businesses, you need to first understand what financial management is. Financial management refers to the strategic planning, management, direction, and control of financial processes in an organization or company.

Financial management is important for every business to ensure stable cash flow. The task of the financial manager or the person responsible for managing the organization’s finances is to estimate funding needs, determine capital structure, create investment opportunities, make financial-related policies, make financial decisions, and much more.

The goal of financial management itself is to optimize profits, ensure business survival, maintain proper cash flow, minimize capital costs, and optimize market share. Without good financial management, businesses will find it difficult to achieve their objectives and experience a lot of losses that lead to bankruptcy.

Understanding Accounting Software

Accounting software or accounting systems (also called financial applications) are software designed for accounting professionals to manage accounts and simplify financial operations in an organization.

A simple accounting system is usually a simple single entry program that is used for storing individual data, while a more sophisticated accounting system can be used to manage debts and receivables, ledgers, invoices, salaries, and even organizational assets.

Today, accounting systems are crucial software for any business. This software allows tracking of detailed financial transactions and making various financial reports instantly.

Before there are financial applications, financial tasks must be done manually, using a large transaction journal. Making a report is generally impractical, because accounting managers must consolidate entries manually. Financial applications automate these tasks, reduce accounting costs, and enable better financial decision making through real-time reporting.

Benefits of Accounting Software for Your Business

Accounting professionals consider the accounting system as a corporate asset that can significantly improve the efficiency of the finance department. Beyond that, some other important benefits that this software can provide to your business are as follows.

Ensuring Good Financial Control

Accounting software allows business owners to control their finances automatically, even if the business owner is not an expert in accounting. With a little training, business owners can manage all of their accounting operations using their computers or mobile devices without having to pay external parties to control their budgets.

Save Company Costs

The financial application automates the calculation of principal and administrative procedures and regulates the composition of your budget, so you don’t need to outsource financial management to external parties. This software can also reduce costs associated with printing and providing documentation, because all data is stored digitally in a safe and monitored location.

Improve Data Accuracy

According to the accountant or auditor, one of the important benefits of a good financial application is that this system can minimize the human errors that commonly occur when calculating and entering data. Inaccuracies in financial statements can cause crises that have an impact on business continuity, and the accounting system can prevent this from happening.

Simplify Decision Making

This is one of the main advantages of a sophisticated accounting system. Without this software, you will have difficulty understanding in detail your financial condition. This system gives you numbers that can help you understand where to cut expenses or where to invest more.

With a clear picture of your current financial situation, you will be able to more easily develop smart strategies and allocate resources appropriately.

Improving Financial Data Security

Financial data is confidential company information and must be maintained so that it does not fall into the wrong hands or be lost. The accounting system ensures your financial data remains safe by storing it in a centralized system that is protected by a firewall. Only those who are granted access rights can see it.

Increase Employee Productivity

Making financial reports and tidying books is a very time-consuming job. To do this work manually, your employees may have to sacrifice other important work. Not to mention if they have to fix errors that often occur when accounting tasks are done manually. However, with accounting software, all financial tasks can be done automatically so that your employees can do other work that is valuable for your business.

General Features in an Advanced Accounting System

Each accounting system has advantages and disadvantages of each, but there are some main features that should be present in a complete and sophisticated accounting software. The following are some of them:

Financial Forecasting

This is perhaps the most crucial feature of the accounting system. Every business naturally wants to be able to estimate their costs and revenues appropriately. Forecasting tools help control finances wisely, eliminate unnecessary costs, and optimize profits.

Billing and Invoicing Management

Sophisticated financial applications provide features that make it easy for business owners to create, manage and send various types of billing and invoicing. E-invoices complete with various components can be customized according to the preferences of the business owner and can be made in a very short time.

Account Reconciliation & Bank Reports

Reconciliation is an important step to ensure the accuracy of your financial data. If done manually, this takes a very long time and human errors can occur at any time. However, with a modern financial application, you can reconcile your bank accounts and statements in seconds.

Making Financial Statements

The accounting system allows you to produce financial statements (profit and loss, balance sheet, changes in capital, cash flow, etc.) digitally. You can also make it in several versions; tables, graphs, lines and circles.

Purchasing and Sales Management

A good accounting system is integrated with buying and selling so that it allows you to manage transactions whenever you want. You can easily create various documents such as purchase and sales orders, debit and credit notes, offers, receipts, and much more.

Asset Depreciation Management

With complex financial applications, you can even calculate asset depreciation automatically and accurately. Asset depreciation can be calculated by various methods according to your company’s policy. This calculation is in accordance with applicable tax and accounting standards.

Conclusion

Accounting system is software that makes it easy for business owners to manage various processes related to finance, completing financial tasks correctly and quickly. This system does not replace the role of accounting managers in managing the organization’s finances, but instead facilitates their work so they can work more productively.

Without the help of an accounting system, business owners or accounting managers can spend too much time creating financial reports, making various documents, or reconciling bank accounts and reports. This software helps them get complete visibility about their financial condition, so that decisions can be made more wisely.

HashMicro provides a complete accounting system that has been adapted to the taxation system in Indonesia. Our accounting system can be implemented in several ways, namely as an on-premise system, a cloud-based system, and a mobile application, according to the needs of each user. Contact us for more information about our accounting system.

Complete Analysis of the Importance of Accounting Software in Business

Good accounting software is a must for entrepreneurs who want to direct their business towards success. Not only should you be able to provide a quick summary or detailed presentation of profit and loss, along with your other financial transactions, the software must also make you meet the legal requirements of the particular region or country where your business operates.

In addition to dealing with growing legality, your choice of accounting software must enable you to automate time-consuming accounting tasks, speed up tax preparation, and reduce the risk of human error at work.

In this article, we will present a comprehensive analysis of the importance of accounting software, explain how accounting software can help you manage your business and provide you with tips and tricks that help you obtain the ideal system for opening your business.

Why Should I Use Accounting Software?

Above we have discussed what is accounting software, but what are its main benefits? Why do you have to use this tool?

With this software, with its in-depth financial information, it shows you where to do your costs and boost productivity. With an effective system, companies automate bookkeeping tasks and compile tax-friendly reports on time.

However, most importantly, they can estimate spending and develop smarter investment strategies with this system.

These are the main benefits of accounting software:

Simplification

The accounting system places financial control in the hands of a non-accounting audience, which is designed to give meaning to numbers when performing automatic calculations. With little or no training, business owners can complete all accounting operations and comply with legal standards of desktop computers or mobile devices, and without paying external parties.

Cost savings

Accounting and financial systems automate core calculations and administrative procedures and control your revenue framework so you don’t have to outsource financial management to external experts. In parallel, they also reduce costs associated with printing and distributing documentation and storing sensitive data in a safe and monitored location.

Full financial transparency

From the accountant or auditor’s point of view, the main highlight of a good accounting system is that they prevent human mistakes that will cause harm and have recurring potential. Counting inaccurate amounts or failing to report data on time can easily lead to a business crisis, and that’s where the most useful automation calculations.

Accurate estimate

This is one of the main advantages of accounting software. Understanding in detail the patterns and trends in your financial performance is something that can take a long time to complete without a solid system. Accounting software gives meaning to numbers, helping you understand where to cut expenses or where to invest more.

With a clear picture of your current financial status, you will find it easier to develop smart strategies and allocate resources the right way.

Productivity

If a business owner needs to choose a digital service package to improve performance, his first choice is accounting software. These systems dig deep into the company’s most complex, everyday tasks, collecting, organizing, and analyzing their most sensitive data, and what’s most important, using their money more intelligently.

Tax fulfillment

Many great accounting systems today are dedicated to payroll and reporting assistance and automatically comply with tax regulations such as Accurate Online. After you activate it, this tool becomes your number one tax source and audit information; they save all the important details for you to maintain a transparent workflow.

Improved customer relationships

One could argue that accounting software has nothing to do with how customers are served, but that is not entirely true. Most current accounting systems (apart from their main function) handle effective billing and billing, and prevent all kinds of delays and miscommunications.

This tool is also easily personalized on behalf of the business, and as such, makes the company’s performance appear more professional and credible.

Security

Financial data is the most valuable company information and must be prevented from falling into the wrong hands or lost by mistake. That’s what the accounting and financial system does for its users: prevent accounting from being threatened in any way, and save additional copies if you need to retrieve them. In most cases, you will be able to build your internal security structure and decide who will have access to sensitive data.

What features should be in accounting software?

Now let’s move on to the various features that must be in accounting software. Depending on the type of operation, the accounting & financial system falls under four different categories. Note that there are also comprehensive accounting activities that are used by many companies that combine the best features from each category. Here is a brief description:

Billing and Invoicing System

Billing and invoicing systems complete the company’s basic day-to-day tasks, including checking text and notifying customers about their payments that are due. They are very important for maintaining control over the accuracy of accounting numbers and making services look more professional and credible to the final results.

On the company side, billing tools and billing methods help document financial activities and prepare them for authorization and validation.

Payroll Management System

If you are looking for a tool to maintain control over your accounts payable and accounts receivable, you should look for a payroll management system that will handle everything. These tools were developed to perform a series of different tasks, including calculating employee salaries, deducting deductions, depositing salaries directly to the bank accounts of staff members, generating tax forms and payment slips, and more.

In the long run, this tool will secure your financial transactions, cut costs, and help prepare detailed financial statements.

Enterprise resource and asset planning system

This is one of the most important features of accounting software. It combines all systems used for product planning, material purchasing, inventory management and control, distribution, accounting, marketing, finance, assets, and HR.

It would be better if accounting software has features that can develop business intelligence, so that companies can learn from their practice and prepare better strategies in the future.

Time and cost management system

This feature is designed to help speed up the billing cycle and approve expenses while traveling and is usually quite configurable for any business to match its operating speed.

The rationale behind it is to help collect payments faster and detect slow and ineffective practices that were not previously seen. Their biggest advantage is being able to produce detailed graphical reports about how time and resources are used in each company.

What Can Accounting Software Do?

How does accounting software work, and what features does it offer? There are many different ways in which accounting software can optimize your business, depending on its main features and objectives. From simplified invoicing to complex tax reporting, the accounting system comes with all kinds of challenges that will make it difficult for you if the software you use is not appropriate.

So what can accounting software do? Here are some basic features of accounting software:

Accounting

Accounting is a major component of every system in this category and you should look for it first when choosing a reliable solution. What comes to mind when we hear ‘accounting’ are ledgers, fixed assets, debt & receivables, and bank reconciliation. This, of course, is fundamental and is the most important.

Make an Invoice

There are accounting systems specifically intended for billing and billing, but most of them still treat similar operations as an integral module of every financial operation. As such, they allow customers to automate regular collections, adjust operations with new and effective payment methods and industry standards, and prepare accurate and timely invoices for their clients.

Budgeting and Estimates

This is also a module that is bundled publicly in most accounting systems, which calculates and interprets financial performance for the current year and helps estimate future budgets. Using such a system, companies can prepare their estimates and set sales targets that are feasible and optimistic.

Fixed asset management

As either a separate tool or an inclusive module, fixed asset management helps manage financial data much more accurately. This module combines features such as audit history, cost records, depreciation calculations, resource allocation, and more.

Payroll management

With various payroll features, you will be able to calculate and process employee payments, prepare and print their checks without delay, and respond to all legal commitments and all income tax calculations without error.

There is indeed a system out there devoted to payroll management, which is used by companies and high-performance employees to remind them of their financial obligations, but you need to know, bookkeeping and payroll are two things that can not be separated. On that basis it would be better if this feature existed, as in Accurate Online.

Project accounting

Project accounting software is usually packaged in separate systems that represent the vertical version of the industrial accounting software. They are very welcomed by construction operators and software developers, where the costs and applicable rules differ from one project to another.

The main ability of this software is to estimate and handle overhead and costs related to labor, materials, and equipment, in line with all the other features that are often found in accounting systems.

Fund accounting

These features can be found in accounting software designed for government agencies and non-profit organizations and includes tracking donation expenses, grant management, PSAK (Statement of Financial Accounting Standards), and a series of special financial statements.

Stock management

Stock management is a special toolkit developed for stock control, and where you will find all the tools needed to provide a higher shelf life product line for your business. This means you will be able to control the availability and movement of your product and avoid all kinds of shipping problems such as overstocking or understocking.

What You Need to Consider When Choosing Accounting Software

Of course, the answer to this question depends largely on your specific business needs and priorities. However, there are a number of key criteria that must be met by each system to make it worth the money you invest. Here are a few thoughts about what you should be looking for:

Integrated invoice module

Apart from core operations, your accounting system must be complete (stock management, for example), and if possible, you should always obtain a system that offers at least some basic invoice creation functions. In this way, you will avoid the trouble of buying additional invoicing software or migrating data to other systems.

Customization

There is no “one size for all” accounting system. In fact, this is one of the most diverse targeted software categories. The reason for this is that each company runs different financial calculations and obeys different ways of various rules.

If you cannot find a particular system that fits your business model, look for flexible programs that you can adjust to your operations, which can grow with your business.

Ease of use

There is nothing simple about accounting procedures and calculations, so your most recent accounting system must be able to do is provide you with an intuitive environment for work.

This means that information must be neatly organized, and functions must be available on one dashboard. You must complete the operation in a few minutes following the navigation patterns you already know.

Security

As we have shown above, the accounting system contains the most sensitive business financial data, every number that depends on it. To ensure that making calculations and sharing data in a safe and tested system, select a reputable company and check the security mechanism beforehand.

Connectivity

At the point where you buy an accounting solution, you already have a variety of software to use. To avoid changing your entire software infrastructure to the needs of one program, do the opposite – get a system that is integrated with the tools you have, or, in the best scenario, offer an open API for you to connect to the system you want.

Cellphone use

The cellular accounting system is no longer synonymous with luxury and only large companies are able to develop it, so why not choose one for your needs? Most popular vendors now offer native Android and iOS applications for their users, where the operability is almost the same as the desktop system version.

Price

The logic of the applicable software is: the more a system can do, the more it will cost. But not with Accurate Online, a cloud accounting software that sets a price for all the features you need. Only 200 thousand rupiah, you can enjoy the convenience of bookkeeping with accounting software with the most complete features in Indonesia

You must know that a quality accounting system does not have to be expensive. What’s important is that the accounting software meets your overall business needs.

Reliable support

Most accounting software vendors are proud of a team that is knowledgeable and quick to respond, but in reality, you won’t know how efficient they are before you really have a problem to deliver.

To prevent bitter disappointment over the money you invest, try the free trial period that is usually provided by the service provider. Like Accurate Online, you can try Accurate Online for free for 30 days through this link.

Potential Problems What Do You Get When Using Accounting Software?

The tendency to choose accounting software according to your business type
If faced with a choice between general and standardized accounting solutions and those that have been developed to meet the specific needs of your industry, choose the latter.

However, please note that in most cases, Business will make changes to bookkeeping activities as the business continues to grow, so make sure all the features you need have accommodated those needs

Scalability and customization

Because accounting deals with non-creative subjects, there is little that developers can do to make digital processes more interesting than usual. Thus, the accounting system will not be a difficult application and open configuration that you can get.

The best course of action for your business is to choose solutions that can be customized and ensure that you can implement business rules and specifications in them. This will also ensure that you don’t have to replace the system when your business starts to grow.

Lack of integration

When looking for a reliable accounting and financial system, make sure it has an open infrastructure that supports third-party integration, or at least the connections you need will not be interrupted when you adopt the new system.

Choose software from developers who realize that the accounting software they make must work in line with sales software, business intelligence systems, CRMs, project management applications, and various other services.

What Is the Future of Accounting?

Central position for workflow automation

Accounting statistics show that software developers are now focusing on what more can be done to facilitate overall accounting activities, which basically makes it easier for accountants and financial experts. In technical terms, this means that workflow automation is improved, and soon there will be no non-automatic work operations.

All Numbers are in the cloud

It sounds almost overwhelming that all the complicated accounting machine companies that took months to install are now going to be history, but there they are. The new accounting trend is leaning towards cloud hosting, because it is a safer, faster, and far more affordable alternative.

Like Accurate Online, the accounting system, transaction recording and tax calculation will be cloud-based. This will make it easier for you to access data anywhere and anytime as long as you are still connected to the internet

Machine learning: the future of accounting

The emergence of AI-powered accounting will continue as businesses seek the assistance of sophisticated programs to get rid of time-consuming and simplified tasks, assign them to machines, and give people more time to do better tasks left to their creative abilities .

In the technological revolution era 4.0, machine learning must allow accountants to enjoy faster computing time, more accurate calculations, effective detection of all fraud, and show accounting trends that have an impact on overall business profits.

Then, What Is Your Choice of Accounting Software?

After reaching this section, you will most likely have input on what type of accounting software you will use to further develop your business. Before taking the final step, consider conducting a free trial offered by Accurate Online for 30 days through this link.