Just as virtually all areas of human endeavor are being computerized, there also exist application software that are being applied to these areas, with specified user customization and settings to suit certain business requirements and needs. Accounting Software which usually incorporate Enterprise Resource Planning (ERP) solution, is not an exception.
While Enterprise Resource Planning (ERP) manage and coordinate all the resources, information and function of a business, Accounting Software allows entries of all accounting data as a result of business transactions from source documents to generate various periodic financial reports. We’ll emphasis more on accounting software for the sake of this discussion.
Accounting Software/Package is the software designed for automating accounting functions and processes into a configured database from which financial reports at different levels can be generated and subsequent function as an accounting information system can raise audit queries.
According to a well detailed definition by Wikipedia, “Accounting software describes a type of application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, journal, general ledger, payroll, and trial balance.”
Accounting software may be desktop based or may be on-line based, accessed anywhere with any Internet enabled device.
In setting up a simple accounting system for a start, you just need a simple, low-cost accrual-based accounting system. There are many light-weight options available which aren’t true “accounting systems,” but they are great for tracking expenses. More substantial are low-cost, easy-to-use systems such as QuickBooks Accounting Software, which 80% of our clients use. There are also high-end options available, which are great in many ways, however, they may be much effort and cost for an early-stage startup.
Common Features of a Good Business Accounting Software
Other common functionalities of a good Accounting Software include:
- New Company Setup: this allows you to input your company Name, address, company logo and other important company information for your business in an advanced setup options and procedures;
- Chart of Accounts (COA): this involves setting up your business accounting structure which is the backbone of any automated accounting system. It’s essentially an accounting structure, designed specifically for your company, which aligns with your financial structure and helps you track and report your income and expenses;
- Default General Ledger: for information, description, class/department masking, review of account types, modify chart of accounts, account beginning balances and so on;
- Default Account Receivable: for customer default/center, adding customers, customer beginning balances, statement and invoice defaults, sales tax setup, modify customer information and so on;
- Default Account Payable: suppliers/vendors default/center, adding vendors, vendors beginning balances, modify vendors information and so on;
- Payroll: for employee defaults/center, setup wizard for adding employees, payroll table overview and employee listing;
- Inventory Management: for inventory item default linked with new inventory, review of inventory levels, setting up assemble, setting up batches, pricing and inventory beginning and closing balances;
- Fixed Asset Management: a process of tracking, monitoring and maintaining an organization’s physical assets and equipment, thereby minimizing losses and improving asset lifetime value, calculation of depreciation and disposing of assets in the most effective manner.
- Reporting: for periodic reports at different levels, include Trial Balances, Profit or Loss Statements, statement of financial position (Balance Sheet), journal report, ageing report, chart of accounts listing, customer/ vendor listing, bank registers, income and expenses by customers and vendors respectively and so on.
- Help/Support: A help desk for information resource, intended to provide the customer or end user with information and support related to software products and services.
In setting up your accounting system, it’s recommended that you do not ‘do it yourself!’ if you don’t have the prerequisite understanding and experience. Doing this can result into messing up your accounting system which cost you more to be fixed and produces unfair reports. Many clients have tried to do their own accounting without doing the needful. It’s never a good experience to correct the work that’s been done incorrectly, this leads to more startup costs than if they had originally / Outsource their accounting services.
Trying to cut costs by doing your own accounting without the basic knowledge may result in spending more. It is better to outsource your accounting services and get the level of accounting support your company needs, from professionals.
Do You Need Accounting Help?
Consistent up to date and cleaning of accounting records for sound business decision making, may be posing some difficulties when you are preoccupied with other business functions. Is it time to consider independent professionals because of certain technical complications that could occur along the line? It could also be daunting, time-consuming procedures. Not recording correctly and poor monitoring can cause complications and confusion.
we @Fritznoble assist our clients on the best available options that suit their businesses...Reach out/ Outsource With Us… If Accounting works are bothering you, then it’s time you outsourced your accounting and bookkeeping requirements, this will help you concentrate more on other core activities of your business; with a team of professionals to help.
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