Could your business benefit from accounting software?

What is accounting software?

Accounting software is a type of software installed on a PC/Laptop that maintains a company’s account books, balances and recent transactions. It is software that does various accounting and bookkeeping tasks for businesses, stores financial data and is often used to perform business transactions.

Why is it used?

The software is used daily in a business environment to record financial transactions, invoice customers, keep track of payments from clients, and flag up overdue accounts. The software can also manage fixed asset management, expense management, revenue management, accounts receivable, accounts payable, sub-ledger accounting, and reporting and analytics.

Most business owners choose to employ this type of software in the day-to-day running of their company to ensure a smooth process for the accountancy team and their books. 

What are the 3 types of accounting software?

Billing/Invoicing Software:

This software takes care of basic invoicing and accounts management activities. This tool is used by most businesses and provides an overview of each customer’s accounts, whether they are up to date with accounts payable and receivable, recent transactions and more.

Payroll/HR management software:

This software performs several tasks, including managing employees’ salaries, paying the salary directly into staff members’ bank accounts, producing tax forms and payslips and more.

ERP Systems:

This accounting software system handles the operational aspects used for product planning, material purchasing, inventory management and control, distribution, accounting, marketing, finance, and HR.

Benefits of using an accounting software:

There are many benefits that accounting software can bring to your business; here are some reasons:

• Eliminate tax calculation errors when creating invoices
• No paper waste or filing
• Automation of tasks, for example, calculating pay, producing payslips, sending invoices
• Digital record-keeping
• Integration with other applications, such as online banking
• Automation of reporting and sales on an annual or quarterly basis
• Simple data entry for customer details
• Data analysis for sales forecast based on previous sales
• Easy monitoring of customers’ overdue accounts

Different accountancy software has different advantages. Most automatically enter, store, and analyse data for you; this is especially useful for saving time on tasks like bank reconciliations. Accounting software offers other helpful tools like invoicing, bill payment, payroll, and financial reporting.

If you would like assistance in choosing and implementing the right software for your business, then please do not hesitate to contact us at Magnetar IT | Contact Us – Magnetar IT