Benefits of Accounting Software: Examples of Leading Solutions Explained

Accounting software has taken on a variety of functions through the years. The platforms have gone on to replace spreadsheets as the ideals for recording financial data. Every type of financial statement has been simulated while providing visual reports that highlight economic trends. They also integrate with popular devices, with information automatically ported from one platform to another.

The evolution of accounting software has made it one of the most valuableorvaluable formsmsVID-19. Since many employees work remotely, the platform has become their digital offer, whwhenever theyheyheyyhey most of their primary duties. They can also process payroll, cash flow, and more in one place if using an HR software suite that includes accounting functionalities. 

In this article, we will examine what accounting software can do and its benefits. We will also explore the types of accounting software in the market and show you some of the leading platforms available. After reading this piece, we hope to help you evaluate what kind of accounting application to consider for your business.

In the age of COVID-19, speed, accuracy, and seamless data migration are of utmost importance. This is why many businesses are choosing to automate arduous tasks that do not require extensive brainpower. As such, deliberate efforts are being made in various industries to adopt automation technology. In a 2020 survey by Accounting Today, it was revealed that 41% of small accounting firms are planning to spend more on tech in 2021. Large firms make up an even more significant percentage at 60%.  

60%60%41%41%38%38%Large firmsSmall firmsMid-sized firms020406080

Tech Spending Increase of Accounting Firms in 2021

 

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Source: Accounting Today 2020

 

This points to the supreme relevance of accounting platforms through the pandemic, given that a large chunk of the workforce is working from home. And the same goes for the clientele of accounting firms. According to a recent study, 41.8% of American employees work remotely. And the growing acceptance of this setup would likely lead to companies adopting the practice even after the pandemic.

Instead of this, online accounting solutions let accountants and businesses perform their financial recording responsibilities. From organizing financial paperwork and computing payroll to tracking inventory and preparing income tax returns, advancements in cloud accounting technology have also proven helpful in trimming down the hours spent on these bookkeeping and accounting responsibilities, keeping ahead of their on-premise counterparts.

As for the same benefits, we will discuss them in detail in the succeeding sections and some of the top accounting solutions.

Accounting software has taken on a variety of functions through the years. The platforms have gone on to replace spreadsheets as the ideals for recording financial data. Every type of financial statement has been simulated while providing visual reports that highlight economic trends. They also integrate with popular devices, with information automatically ported from one platform to another.

The evolution of accounting software has made it one of the most valuablvaluablerms around -19. Since many employees work remotely, the platform has become their digital office, where termor primary duties. They can also process payroll, cash flow, and more in one place if using an HR software suite that includes accounting functionalities. 

In this article, we will examine what accounting software can do and its benefits. We will also explore the types of accounting software in the market and show you some of the leading platforms available. After reading this piece, we hope to help you evaluate what kind of accounting application to consider for your business.

In the age of COVID-19, speed, accuracy, and seamless data migration are of utmost importance. This is why many businesses are choosing to automate arduous tasks that do not require extensive brainpower. As such, deliberate efforts are being made in various industries to adopt automation technology. In a 2020 survey by Accounting Today, it was revealed that 41% of small accounting firms are planning to spend more on tech in 2021. Large firms make up an even more significant percentage at 60%.  

This points to the supreme relevance of accounting platforms through the pandemic, given that a large chunk of the workforce is working from home. And the same goes for the clientele of accounting firms. According to a recent study, 41.8% of American employees work remotely. And the growing acceptance of this setup would likely lead to companies adopting the practice even after the pandemic.

Instead of this, online accounting solutions let accountants and businesses perform their financial recording responsibilities. From organizing financial paperwork and computing payroll to tracking inventory and preparing income tax returns, advancements in cloud accounting technology have also proven helpful in trimming down the hours spent on these bookkeeping and accounting responsibilities, keeping ahead of their on-premise counterparts.

As for the same benefits, we will discuss them in detail in the succeeding sections and some of the top accounting solutions available.

Benefits of Accounting Software

Without accounting software, you will have to rely on your ledger and a calculator. While this process is time-tested, it could take days before you can even start analyzing the data you’ve compiled. By automating these tasks, you can accomplish more detailed reports at a fraction of the usual time. To add to that, you can enjoy these other benefits of accounting software utilization:

1. Optimized business operations: Why waste your energy on bookkeeping when you can use it to run your business? With accounting programs, you can work smarter, not harder. Speed up your processing time by eliminating manual calculations from your daily to-do list. This helps you keep your books up-to-date without cluttering up your desk. Additionally, you can optimize your operations because you no longer have to run numbers on different applications—you can view everything on a single screen.
2. Improved accuracy: Having an accurate record of your finances is crucial to monitoring the progress of your business. By using accounting programs, you can simplify aspects of accounting that may be prone to errors. Many programs can automatically make calculations as you enter data, transfer funds, and adjust assets. It can also generate analyses while reducing the chances of oversights. If you want to check your record for miscalculations, you can easily find and correct it before finalizing reports. Some even have comment capabilities to allow you to make notes for future reference.
3. Reduced operation cost: A minimal number of companies outsource their bookkeeping. This means most businesses manage their finances and all the related paperwork in-house, diminishing the time they have to work on their actual operations. Now, cost reduction is but one of the many benefits that outsourcing has to offer. By installing software that suits your business, you can save on outsourcing without compromising quality accounting reports.  As an additional perk, using cloud-based or on-premise applications can help you save on printing and paper costs, as well as lessen your carbon footprint. You can read more about how much does accounting software costs here.
4. Secure database: Most accounting software can be password-protected. This capability lets users protect confidential information from being accessed by unauthorized personnel. Also, by having your data stored in software, you facilitate quickkkckckk access, file search, and retrieval, not to mention safeguarding it from natural disasters. If your data is only accessible digitally, it is invulnerable to calamities like earthquakes, fires, and floods.
5. Synchronized Files: As your company grows, the quantity of paperwork you have to track and the amount of accounting you need to perform multiply and becomes complex. Through software, you can access the information you need across multiple platforms and sift through computerized data without hassle. Furthermore, data migration is made easy because accounting software allows for synchronizing online and offline databases.  For your convenience, some applications provide real-time status updates, so you can see the changes as they are applied.
6. Simplified tax compliance: Tax-related responsibilities take around 175 hours per year for all companies in the USA. In other countries, they may even take up to over 400 hours. That’s a lot of wasted days that could have been used to secure new clients, create new products, or improve existing services. With the tax planning features offered by lots of accounting software, you can store receipts, invoices, and income statements in one convenient platform. Some programs even allow for integrations that let you compare ITRs and adjust calculations according to new policies.
7. Automated record-keeping:  An essential facet of financial management, record-keeping can be confusing and labor-intensive. To lessen the effort you need to exert, various software solutions provide features that compile your input in different applications. Apart from merging them into one comprehensive operating system, it can also analyze business practices and identify trends in your company’s money flow. After which, it calculates your bottom line to show you where and when you are generating more revenue, which aspects of your operations you need to invest more in, and the like.

8. To understand the purpose of accounting software in your day-to-day business operations, we must first understand its main functionalities and the problems it can solve. In a nutshell, it is a collection of applications designed to gather, record, summarize, and store financial data for interpretation. Programs such as these are meant to minimize the number of effort users exert in computing data. Moreover, they speed up creating comprehensive financial reports and allow for immediate analysis of cash flows.

   Some of its key features include:

   • Automatic Data Backup
   • Budgeting and Forecasting
   • Check Printing
   • Comment Capabilities
   • Cost Predictions
   • Customizable Reports
   • External Application Integration
   • Fund Accounting
   • Inventory Management
   • Password Protection
   • Payroll Management
   •  

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