Accounting software is one of several types of software that performs various bookkeeping and accounting tasks. It stores the financial information of a business and is utilized to complete a business transaction.
Introduction (1)
It is a computer program that allows accountants to report and record the financial transactions of a firm. Firms install accounting software according to their needs. Some firms require basic simple accounting software while others require customized accounting software. This program makes calculations convenient to understand, analyze, and perform. Accounting software covers less space in the office that excludes the cost associated with rent. It proves beneficial in external and internal audits as it recovers old accounting information easily. This software is necessary for the entrepreneur who wants to excel their enterprise to the highest peak of success. Besides these benefits, accounting software allows the automation of labor-intensive accounting duties, preparation of accelerating tax, and reduction of human error.
Types of accounting software
- Invoicing system
This allows the completion of routine tasks of a company such as writing checks and notifying customers regarding their debts. It is important to preserve the precision of accounting figures and give more credible and professional services to end consumers. In the company, invoicing and billing tools aid in document financial tasks and prepare them for validation and authorization.
Examples: Zoho books, Invoiced, and FreshBooks.
- Payroll management systems
If an entrepreneur is searching to retain control over account receivables and account payables, then he must go with the payroll management system because it handles it all. Tools in the Payroll management system perform various tasks such as calculation of worker’s pays, deductions, and transferring pays directly into the accounts of employees. In the long run, these tools secure financial transactions, reduce expenses, and support in preparing detailed reports.
Examples: Xero, AccountEdge, and Zenefits.
- Enterprise resource planning systems
It is one of the most crucial types of accounting software. This single system integrates all systems that help in purchasing of material, planning of a product, inventory control and management, accounting, distribution, HR, financing, and marketing. The advanced ERP systems provide modules for business intelligence and CRM. That is how it helps the company to consider and learn from its previous practices and make other strategies to succeed in the future.
Examples: Brightpearl, Intacct, Odoo
- Expense and time management systems
These tools are created tohelp accelerate billing cycles and endorse daily expenditures. These tools are configurable and every company can customize them according to its needs. The main motives of these tools are the fast collection of payments and detection of ineffective and slow practices. They help in the creation of a graphical presentation of resources and time used in each company.
Examples: Zoho Expense, FreshBooks, Expensify
Reasons to use Accounting software (2)
- Simplification
Accounting software permits finance control by non-accounting bodies. With the help of this program, a company owner can make accounting operations done even without having any training. Moreover, he can make his company comply with legitimate criteria from a mobile device or desktop computer without paying a third party to keep resources in the loop.
- Cost savings
Finance and accounting systems automate administrative procedures and core calculations and handle the company’s revenue. This eliminates the company’s headache to outsource finance-related management to a third party. In parallel, these tools also lessen expenses related to document printing and distribution. It stores information in monitored and secure places.
- Complete financial transparency
From an auditor’s and accountant’s point of view, the core feature of a good accounting system is the prevention of recurring and costly human errors. Calculation of inaccurate sums and failure of in-time data reporting result in a business crisis. That is where automatic calculations are needed.
- Accurate forecasting
It is considered one of the main benefits of accounting software. In the absence of a solid system, it takes ages to understand trends and patterns of financial performance in detail. Accounting software forecast the financial position accurately and tells where to invest more and where to pay less. With a clear understanding of the current financial situation, a firm owner can easily create smart strategies and invest the resources at the right place.
- Improved customer relationship
A person can get confused that how accounting software is linked with the customer. Accounting software allows effecting invoicing and billing that avoids all sorts of miscommunication and delays. They are configurable according to the company’s requirements.
Top providers of accounting software
- FreshBooks
It provides 3 plans:
- Lite costing $15/month/5 clients
- Plus costing $25/month/50 clients
- Premium costing $50/month/500 clients
- NetSuite ERP
It provides its services to a company according to quote-based.
- Invoiced
This provider offers two plans:
- Basic costing $100/month
- Premium costing $500/month
- Enterprise plans are quote-based
- Free trials are available
- Tipalti
It offers quote-based plans. Contacting a vendor can help in fetching comprehensive details.
- QuickBooks Online
It offers affordable plans to small businesses. Its plans are:
- $10/month/user
- $17/month/3 users
- $30/month for a developing firm
- $5/month for self-employed individuals
- Zoho Books
The price plans of Zoho Books and FreshBooks are similar. These are
- Basic plan costing $9/month for 5 automated workflows, two users, and fifty contacts
- Standard plan costing $19/month for 3 users and 500 contacts
- Professional plan costing $29/month/ten users and unlimited contacts.
- Xero
The Early package of Xero is $9, which covers 20 bank transactions, 5 bills, and 5 invoices. The rest of the two plans are:
- Growing plan costing $30/month
- Established plan costing $60/month
- QuickBooks
QuickBooks provides various pricing plans depending upon the size of the business and intended application. The main accounting suite includes:
- Simple plan costing $10 for basic invoicing
- Essentials costing $17 for multiple users and billing
- Plus plan costing $30 for printing and tracking inventory
- Free trials are available
- All plans provide annual savings
- Rossum
It brings a refined approach to logistics, accounts payable, invoicing management, and shared services documents. It offers quote-based pricing plans.
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