Best Features of A Good Accounting Software
Choosing a good accounting software is an essential factor for any business, regardless of size or industry.
Accounting is a practice of communicating and recording all the financial information. And this can be done for an internal and external audit, recording financial information and analysis to meet certain legal requirements.
What Is Accounting Software
An accounting software is a kind of computer software that is used by accounting professionals to perform and manage these accounting operations.
While looking for a good accounting software for your business, you have many options to choose from.
An accounting software can range from single entry small business accounting programs (keeping records) to more sophisticated double-entry large business accounting programs (features including accounts payable, accounts receivable, payroll, and inventory).
The features of the business accounting software that you choose should match the requirements of your company.
If you want to manage your business accounts all by yourself, business accounting software is the perfect choice for you.
It helps you with several benefits, including simple and fast data entry capabilities, running reports for your business analysis, reduced operational costs, bookkeeping, managing your consumer invoices, simplified tax compliance, and improved productivity by reducing the approval processes.
It is a cost-effective option that helps you keep all the data accessible and in a digitized format.
Features of a Good Accounting Software
There are many key features of online business software that make it a tool of utility.
Let us try to understand some of them:
Accounting is the key component of all the online business accounting software in the market.
It is the first preference that you should be looking for in a good accounting software.
Accounting software tools make basic accounting functions like general ledger, fixed assets, accounts payable, and receivable work more effectively with no delay.
Online Billing and Invoicing
If your business is the kind that generates and sends invoices online, then accounting software is the right pick for you.
It not only initiates online invoices but also provides a seamless payment experience to your customers.
The ability to remind them about the payments and mail them about the same helps get paid faster.
Specific online business software requires third party integration for payment processing, while some require in-house payment processing services.
If your business consists of many employees or contributors, it requires online business accounting software.
It not only helps you keep account of an array of employee payments but also enables you to prepare, print, and process their checks within no time.
There are systems entirely dedicated to payroll management, but offering the benefit of it as a feature in online business software with many other significant features is a cherry on top of the cake.
Inventory management is broadly used for non-capitalized assets or what we call stock control, required to give your business a higher shelf life.
If you own a retail or a distribution business, an accounting business software that tracks inventory and helps you with a purchase order is the right choice for you.
It will, in turn, help you optimize fulfillment, reduce costs, prevent loss from theft or any spoilage, and provide a better customer experience.
Automatic Payment Reminders
Most businesses use accounting software that is mostly automated but requires updates from time to time.
This feature helps you to remind your customers about their past and upcoming payments.
Mostly, there is a sample text template sent out every time a customer is to be reminded of the payment process, which helps you get paid faster.
Some tools also allow sending gratitude emails to the customers after receiving payments, which can also be done using a simple text template.
When you reconcile your business bank account, you compare your internal financial records with the ones sent out to you by the bank.
Filtering these records manually can be a tiresome task.
Smart reconciliation tools in the online accounting software identify potential matches between your internal records you have entered into the software and the bank transactions, helping you identify any unusual transactions that might be fraudulent or caused due to error.
You can choose to accept or deny the same, based on your preference.
All the online business software in the market will not match the exact requirements of your business since there is “no one size that fits all.”
However, they are highly customizable. Screens can easily be changed. Forms, reports, and statements can be customized according to your immediate needs.
This will give you high ease of use, along with reliable support if needed.
The need to combine all the major financial accounting programs into one application is immense.
This can eliminate the need to manually transfer a set of information from one system to another.
It disposes of the purpose to keep separate books for orders, costing, and management which eventually saves time and helps to cut down on training time for the employees who need to learn the operations of the same accounting software.
Mobile-friendly accounting software is no longer a luxury that only enterprise businesses can afford.
Most of the online accounting software helps you with Android and iOs applications.
Some of them might be able to help you with the tracking of expenses only, while the other might perform functions like creating and sending invoices too.
The operations of the most popular ones are just the same as the desktop versions of the same, making your cumbersome tasks extremely convenient.
The online business software should be capable of growing in size and scope, both.
In case you decide to upscale your business, the accounting software that you possess should either be able to accommodate by itself or must be easily upgraded.
It must have the capability of accommodating a larger user base, more transactions, and growing financial data.
These are the questions that should be considered while making a purchase of the software.
It is a matter of enhancement and not a replacement to consider cloud-based accounting software.
A study reveals while 89% of the accountants are happy to integrate new technologies and focus on strategic tasks instead, 67% have adopted cloud-based accounting management.
This data gives us insights on the fact that machine learning is the future of accounting and being a business owner, one must absolutely put all the aforementioned features into consideration and move ahead to buy an online accounting software in case you do not possess one.