Currently, there are many tools that technology offers to simplify the work of both accountants and companies, but few are as useful and have as many functions as accounting software. It is indisputable that accounting is essential to keep a business afloat if it is organised and provides the necessary information at a certain time. Still, sometimes it can seem tedious and be synonymous with a lot of paperwork.
Fortunately, some mechanisms allow you to digitise and maintain all the information collected in a single system, avoiding the clutter of papers and minimising human error. These new systems help the accountant organise everything related to their clients’ accounting and allow companies to obtain important information without having to have 24 hours of the accounting profession, as long as every detail, transaction and operation carried out by the entity is entered. If you want to discover more about accounting software and how they will change the course of your company for the better, do not stop reading this article!
What’s Accounting Software?
It is a computerised program that enables the compilation of all the financial information of a company in an integrated system that, generally, handles the basic accounting principles to operate under a valid source and within the legal frameworks.
The accounting software stores organise and simplify each historical transaction carried out by an entity, which can include important information such as sales, purchases, inventory, accounts receivable, among others. Likewise, it is capable of issuing reports, balance sheets, financial statements, statistics and any other accounting data that is useful for the company.
In summary, it can be said that the main objectives of this software are:
- Monitoring of the daily operations of the company;
- Process improvement, time reduction and maintenance of centralised information management;
- Timely data in real-time;
- Simplification of financial information.
It is also necessary to highlight that in Chile, specific laws regulate the obligation to issue documents electronically, such as billing and dispatch guides, gradually including other elements. By this, entering the world of these programs will be indispensable in a few more years.
Importance of An Accounting Software
Automation is increasingly important in the business world, not only because of technological modernity but also because of the significant time savings generated by this advance. Previously, keeping accounts for a company or person was exhausting, mainly due to the amount of paperwork and time involved in the operation. How many times have you missed an invoice or an expense report? How many times have you been faced with cluttered piles of information? This scenario has happened to all accountants at some point, and it’s not pretty. Fortunately, systematisation has greatly diminished this problem.
The possibility of entering data periodically in the same database means a gigantic advance in the world of accounting. Likewise, along with saving time, this advance means reducing the margins of error, since an accounting system increases the precision of results, the fulfilment of objectives and the analysis of accounting information for any decision making that may be crucial for the growth of the company.
Having everything organised and grouped in a single system increases your ability to react to certain situations that could determine the future of the business, allowing you to know in time about a problem or complication that represents the line between its development or its involution.
In this way, accounting software makes it possible to improve the management of any operation, department or process that at first glance seems to be going well, but which is not the case. These solutions are even capable of tracing a whole set of actions to determine the cost of a product or service, including the invoices related to its production or purchase, the agents involved and any other calculation required to know the result.
Another of the great advantages of these platforms is that there is no limit to the number of companies you enter regardless of whether there are 10, 20 or how many customers you want. All the information is segmented into accounts for each of them. Additionally, thanks to its multi-user function, you can assign roles to third parties to enter without accessing your private information. Making your work lighter and more efficient is as simple as relying on an online accounting system. If you already do, we invite you to tell us your experience so that many other accountants know first-hand how good it is to have a specialised platform.
Finally, if you want to know more about how accounting software works and which one is ideal for your job, either as an independent accountant when running a small business, keeping a tight grip on your finances is critical to success. Contact SJB Bookkeeping in Hampton Park to get started!