Small companies are under a lot of pressure and managing finances can be very challenging. Much of the functionality of accounting software can make the job a lot more manageable. Businesses have always relied upon accurate calculation of their expenses, but this is even more of an important issue in the current financial downturn.
The software allows the user to manage and monitor all aspects of the company’s finances, flagging any unaccounted expenditure and allowing for a higher level of accuracy than ever before. It is the clarity and accuracy of the software that can allow businesses to save money. There are specific features which make certain areas of accounting easier.
It is important to be able to call up any expenses to ensure that the company can cover all costs and this is an excellent feature of accounting software – there is no need to sift through reams of paperwork.
The higher level of accuracy means that the user can rely on the data being accurate. Mistakes do of course happen when inputting date, but most software includes protective features to counter this. Such safeguards mean a saving on time as data does not need to be entered several times.
This used to be the activity of a full time bookkeeper and was very time consuming and laborious. Bookkeepers are accurate, but very expensive – the cost of software including payroll processing is likely to be less than the fees for a bookkeeper. This feature is usually designed to be easy to use and fully incorporated into the other features of the software.
Time sheet information is combines with pay rates and all calculations are carried out by the software. Any deductions are automatically made and payslips can be automatically generated. Some software includes server-based timesheet entry, so employees can enter their hours worked into a central system. This allows the data to be accessed from the main software interface.
Tax & Financial Reports
The end of the financial year usually sees accountants put under a great deal of pressure. Accuracy and speed are vital if all the relevant paperwork is to be filed on time. Accounting software makes the generation and monitoring of this paperwork very easy and intuitive – No bookkeeper required!
Most companies require supplies in order for them to run. Orders for these supplies can be regular or variable, which makes keeping on top of payments complicated. Any member of staff could request for something to be ordered at any time and it is up to the accountant to make sure that the costs can be covered.
With accounting software it is possible to monitor and keep track of invoice payments and their due dates with ease. In addition to this stress-reducing feature, the amount of paper needed as all the data is digitised – this means fewer print toners/cartridges and less paper, which can mean instant savings for a company that takes the decision to invest in accounting software.