Whether your business is small or big, keeping a proper account of its different transactions is quite a tough job. Especially, when your business is growing, the number of its transactions also increases. Then the task of keeping accounts becomes more tiring and time-consuming. Accounting software can make this tough job easy. Let’s know “why is accounting software important?” from this article.
What does it mean by Accounting Software?
Accounting software is also known as an accounting system or accounting app or accountant software. This type of software is planned to manage your business’s accounts exactly and make financial tasks easier. Consider using the HishabPati app to keep your business accounts properly and manage cash flows.
You can use this software on your mobile as an app, and you can also use it on desktops, laptops, tabs, and mobiles from the browser. The app has awesome features, and it can keep easy to difficult all accounts of your business effortlessly. You can upload innumerable products, you will get accounts of all your customers and suppliers on the “Parties” feature. Keep accounts of all your purchase-sale, and expenses separately, and prepare weekly, monthly, or annual reports in a jiffy.
Many businesses in Bangladesh are now using this software because keeping accounts on pen and paper or spreadsheets on the computer is quite a time-consuming matter. Using this type of software will let you easily track all financial transactions, prepare various reports, and make financial decisions quickly by getting all information at the right time.
How Accounting Software is Important for Your Business?
Accounting software not only automates your business transactions but also accelerates the decision-making process of various financial decisions. Accountant software is vital for your business in the following ways:
1. Make the Accounts Easy.
2. Ensures Financial Control.
3. Saves Expenses.
4. Helps in Billing and Invoicing.
5. Helps to Track Your Expenses.
6. Makes Online Payments Possible.
7. Helps in Bank Reconciliation.
8. Plays Role in Inventory Management.
9. Helps in Project Management.
10. Eases Preparing Financial Statements.
11. Eases Tax Payments.
12. Develops Decision-making.
13. Increases Information Accuracy.
14. Develops Security of Financial Data.
15. Enhances Transparency.
16. Increase Productivity.
17. Helps to Forecast Accurately.
18. Helps to Maintain Relationships with Customers.
19. Eases Purchase-Sale Management.
20. Helps in Asset Management.
Let’s discuss the above-mentioned reasons for importance thoroughly.
1. Make the Accounts Easy.
Accounting software is planned and developed in such a way that people who don’t have any accounting knowledge can use the software effortlessly. You don’t need to train your employees to use the software properly, even if you need it, the cost won’t be that high. Businessmen can easily do all the accounting tasks and can integrate with the legal standards and rules.
2. Ensures Financial Control.
Accountant software helps to financially control your business automatically. Even if you are not an accounting expert, you can easily handle your accounting tasks on your mobile or computer by taking very little training. You don’t need to pay any external team to carry out the accounting tasks of your business.
3. Saves Expenses.
Accounting apps automate the main accounts and administrative processes of your business and control your revenue infrastructure. You don’t need to hire any financial accounting team to complete these tasks. The software will also reduce your costs of printing and sharing information. Because the software saves all information digitally and safely in a controlled space.
4. Helps in Billing and Invoicing.
You can create recurring profiles for regular clients’ orders in accountant software and each time when an order is made you can select the order to send automatically. You can also include payment conditions in your orders to remind your clients about payment. Accounting apps let you automate your payment reminders. You have the option to set up the reminders based on your expected payment dates or selected invoice dates and the software will automatically send those to your clients.
You can identify all your unpaid invoices, remind clients about payments, and prevent the miss of any payment accidentally with accounting software.
5. Helps to Track Your Expenses.
Accounting software lets you track your expenses and helps you classify the expenses to give you a clear image of where your money is being spent. You have the option to upload the expense receipts with accounting software, scan them, and record data automatically from the scanned receipts. Thus, you don’t need to store paper receipts anymore, and there won’t be any fear of losing them. Accounting apps make billing the customers easy for the expenses you spend for them.
6. Makes Online Payments Possible.
You can integrate different online payment gateways with your accounting system, which will make a safe and fast way for your customers to pay you. Payment gateways make a record of your received payments and update them automatically under the corresponding order in the accounting software. These give clients various methods of payment such as debit and credit cards, online bank transfers, and cash payments.
If your clients are scattered in different parts of the world, your business must be ready to manage all kinds of currencies. The online payment gateways connected with your accounting software support various currencies and even if it lets you take your clients’ payments in their currencies, it lets your accounting take place in your currency. This removes extra calculations and inconsistencies in the case of foreign transactions.
7. Helps in Bank Reconciliation.
If you can connect your accounting software with your bank account, you will be able to bring statements directly from your bank automatically to your account. You can set bank regulations and definite standards in your accounting software so that it can automatically classify and match your bank transactions. You just have to confirm and authenticate to integrate your accounting software after your transactions are matched. Accounting software keeps your business ready for audit all year round through bank reconciliation.
8. Plays Role in Inventory Management.
.Suitable inventory management is essential to ensure sufficient stock and superior customer care. It entails recording information on items, tracking items, keeping accounts, and preparing reports. Accounting software helps to record stock-keeping unit codes, add item images, make bundles, and track the movement of items with batch or serial numbers. When you get an order for the item, you can create a sales order with accounting software, after approval you can convert it to an invoice, and you can include suitable tax with it.
You can track stock, and you can set the reordering level to get an automatic email and to order timely so that your stock doesn’t get finished. You can prepare inventory reports to get better data and operate inventory management more efficiently.
9. Helps in Project Management.
A strong accountant software entails a timesheet module so that you can charge your clients based on how much time you’ve spent on a project. Timesheets help your project management by setting time to prepare budgets and invoices for clients. If you can find out how much time you’ve spent on which task with accounting software, you won’t under-bill or over-bill your customers. Even you can get approval from your clients on your selected times before billing them and ensure that all clients are on the same page.
You can compare how much time it took to complete a project with your budget so that you can plan more accurately in the future.
10. Eases Preparing Financial Statements.
Financial statements help to understand the financial condition and growth pattern of your business. A complex part of preparing financial statements is using spreadsheets because you need to compile each piece of data on the sheet and give formulas. Accounting software makes your task of preparing statements quite easy and fast and saves you valuable time and energy.
Accounting software prepares the main three types of statements such as cash flow statements, income statements, and balance sheets quite fast. These types of software have internal features that give you crucial information analyzing the financial statements of your business, give a clear idea about your business’s financial condition, and help you make fruitful decisions quickly. Apart from preparing financial statements, accountant software compiles data regarding various crucial things about your business such as purchases, sales, inventory, taxes, and projects. You can prepare frequent reports using this information, take quick decisions, and can develop your overall business.
11. Eases Tax Payments.
A powerful accountant app eases your tax payment process. If you work with various tax rates, accounting software makes your tax calculation tasks fast, and applies the right tax more appropriately to your transactions. It can give you a superior idea about your tax by preparing a tax summary report.
12. Develops Decision-making.
It will be tough to understand the financial condition of your business without an automatic accounting system. It gives you some crucial figures that let you find out where you need to invest more and where you need to reduce your costs. Again, a clear idea about the financial state of your business will help you develop smarter strategies and allocate resources efficiently.
13. Increases Information Accuracy.
Generally, accounting software reduces the rate of human errors that take place during recording data and keeping accounts. The errors that occur during the preparation of financial statements create many difficulties that affect your business negatively. Accounting software helps to reduce these possibilities.
14. Develops Security of Financial Data.
Financial data are the most confidential data for a business. Accounting software saves all your financial data in quite a safe environment, and there only you and those to whom you have given access will have access.
15. Enhances Transparency.
A powerful accounting system helps to avoid repetitive and expensive human errors. Wrong accounts or inability to give information on time can lead your business to a crisis. An automatic accounting system can help you the most in such cases and plays a vital role while financial audits by ensuring the highest transparency.
16. Increase Productivity.
Accounting software makes the monotonous and complex daily accounting tasks of your business easier, and fast, and not only collects your business data but also analyzes it by organizing them. The most important thing is that it ensures smarter use of the available resources. Besides, it helps management in making effective decisions by giving accurate data and enhances the efficiency of report standards.
17. Helps to Forecast Accurately.
Any businessman will like to keep accounts of the revenues and expenses for his business accurately. Accounting software helps to make use of your investments intelligently, increase profits, and reduce unnecessary expenses.
18. Helps to Maintain Relationships with Customers.
Accounting software saves various data about customers, so you can send them greetings on their birthdays taking information from there. Again, you can send them greetings on different festivals such as Eid, Christmas, new year, and the like, you can send these greetings using the email or phone number saved in the software. Again, if accounting software sends an acknowledgment after receiving the payments from customers like it sends reminders to them for payments, then it will be better. All these things help to build nice relationships with customers.
19. Eases Purchase-Sale Management.
Generally, a suitable accounting system remains integrated with purchases and sales management and whenever any transaction takes place it lets you manage. You can easily develop different documents like purchase-sale orders, quotations, receipts, debit and credit messages, and the like.
20. Helps in Asset Management.
You can calculate the depreciation of assets accurately and automatically with more advanced accounting software. Apart from this, various methods of advanced software will let you calculate the amortization of assets according to your business principles, accounting standards, and applicable taxes.
Final Words
We hope you have got a clear idea about-“why is accounting software important? “-from the above discussion. Select a suitable accounting software for your business today and let your business reach the path of your desired success.
