In today’s savvy digital climate, there are many accounting programs designed to suit every type of business from small mom-and-pop operations to large global companies. Software packages range from simple bookkeeping programs to comprehensive financial management tools that can practically run the accounting department. Adopting an accounting program is important for a variety of reasons including a more efficient use of time and improved accuracy. If your business has not adopted sophisticated accounting software, it might be time to remedy that situation in the New Year.
Improved Accuracy
“Accounting software can help to increase the accuracy of your records by reducing or eliminating human errors in calculation.” (1) No matter how good your bookkeeper may be, errors will occur. Your bookkeeper could be interrupted while performing a manual calculation or simply make an honest mistake. These mistakes, however, could be costing your business money. Accuracy is paramount when it comes to finances. Accounting software supports accuracy and, while data entry slips may still occur, calculation mistakes will not.
Time
Accounting software also enhances the efficiency of your accounting team. Accounting programs perform calculations instantly as well as accurately. Manual labor necessarily takes for longer even to perform relatively simple calculations. With improved efficiency, your staff can focus on other aspects of their job like analysis. Whether it’s payroll or reporting, your software program can deliver the tasks you need quickly.
Security
Accounting software is designed with security features that businesses can customize. Ever wonder who has been doing what in your accounting system? Menu level security allows you to control the functions each user has access to.” (2) Moreover, if you find something questionable in the accounting, you can easily trace the problem so you can deal with it effectively using the program’s audit capabilities.
Reporting
Many businesses rely on the accurate reporting functions of their accounting software. These reports help them view the financial picture of their company and each department so they can make strategic decisions moving forward. Without an accurate picture of the finances, business leaders can hardly make good decisions. Many accounting systems allow business leaders to customize their reports so they can access any type of financial information they need whenever they need it.
Taxes
One of the best features of an accounting software package is its ability to manage taxes. Tax time doesn’t have to be complicated when you can rely on your automation throughout the year to track and manage this essential aspect of business for you. With all of your business finances housed in one place–your accounting system–you can more easily prepare your taxes.
Reduced Expense
Adopting an accounting software platform has long been associated with reduced business costs. Not only will you reduce accounting errors substantially, but your accounting employees will be able to do far more in a day’s time with software support. You might even find that a smaller accounting team can handle your accounting tasks, which can save your company considerably.
Accounting software supports business in so many ways. If you have investigated accounting programs, make a point to do so in the New Year.
1. Chron, “The Importance of Accounting Software,” http://smallbusiness.chron.com/importance-accounting-software-71524.html
2. Red Wing Software, https://www.redwingsoftware.com/rwssn/home.aspx