Accuracy and Efficiency: Accounting software increase efficiency of the organization by managing the accounts receivables, payables and general ledger. Accounting software benefits include increased accuracy by reducing or eliminating human errors in calculation. Manual bookkeeping processes involve making a lot of mathematical calculations by hand. An incorrect calculation early on in the in the process could have a great impact on the end balance.
Cash Flow Management: Managing a business entails a net amount of cash and cash equivalents that flow in and out of your financials. Overseeing all transactions to pay and get paid for may mean having to designate your productive hours in flicking through contact lists, files, and Excel sheets without an accounting program to streamline the task. Accounting software helps business to gain new levels of insight into the cash flows and payment processes and also calculates everything for you, resulting in negligible finance errors. The accounting software takes care of tracking all the transactions with seamless scaling and implementation of new products and services.
Reduction of Costs: Accounting software eliminates the need for hiring a bookkeeper or allotting extra hours of their shift to handle all books, invoices, and transactions. In business, time is equivalent to money and optimizing this process greatly reduces bookkeeping hours. Furthermore, the software has subscription-based pricing models with low costs to pay on a monthly or annual basis. Subscribing to a plan gives you regular updates, support, and tools which enables you to focus on actually running your business. The use of an accounting program allows each member of the accounting team to do more in a given time. Thus, in turn, reducing the accounting department’s payroll and administration costs.
Easy Tax Filing: The accounting systems are so comprehensive that they lay out every detail required to comply with taxation laws, for example, TDS compliance with Tally. They also comply with tax office rules through formatting invoices automatically, so you won’t face headaches during tax season. . It also enables audit-proof books which makes the auditing process shorter as IRS auditors may only check and do a cursory review to see if the bank statements align with the software’s records.
Digital Invoices: In a technology-driven world, paperwork is outdated. Many processes nowadays are empowered by technology. It’s even predicted that by 2022, 70% of software interactions of enterprises will happen in mobile devices which stresses the importance of getting ahead against your competitors. Sending a digital invoice to your customers via email is convenient both for you and your customer. Customers can send their payments with only a few clicks which make collecting them faster and easier. Many accounting platforms nowadays integrate with various payment channels that allow credit and debit cards, bank transfers, and e-wallets.
Security: Company’s financial data is the most valuable information and must be prevented from falling into the wrong hands or getting lost. This is what accounting and finance systems do for their users. They prevent accounting from being jeopardized in any way, and keeping an extra copy in case you need to retrieve them. In most cases, you will get to build your internal security structure and decide who will have access to sensitive data.
Customer Relationship: It’s impossible to refute the factor that accounting software have little to do with customer relationship management. The accounting systems work around efficient billing and invoicing, thus, preventing all sorts of delays and miscommunication. It makes companies’ performance appear more professional and credible. With Accounting systems, one can convey any piece of information which is important or related to the product. Companies can wish the clients on their birthdays with the data stored in the systems and can also send reminders of outstanding dues, and on receipt of the same can also send the acknowledgment note to the clients. All these helps in building a strong customer relationship and make the business viable for the long run.
Automation: With any popular accounting system, automated payment plans allow you to only enter a customer’s information once. A customer’s payment habits and purchasing history are tracked for reference. When collecting payments is due, you’ll then receive payments without putting in extra work from your end. It also gives you vendor history and aging with reports for each member which makes locating and retrieving invoices and payments faster. The entirety of each transaction history is also saved in the system without you having to manually input the data one by one.
Accessibility: Cloud based accounting software can be accessed anywhere at any time. It doesn’t limit your access to your office or desktop. Apps that can be used on the mobile devices are more preferred by organizations.
Speed of Completion: Using accounting software allows businesses to process their accounts with greater speed than manual processing. Part of this speed increase comes from the use of computers, which are able to process figures far faster than the human brain.