What are the advantages of using accounting software?
- Saves time
- Instantly generates key financial reports
- Collates all financial data
- Enables collaboration
- Real-time reporting
- Improves accounting accuracy
- Simplifies payroll
- Provides complete financial oversight and control
- Streamlines the tax process
- Reduces inventory errors
If you’re a business owner, then you might have started out tracking your finances with spreadsheets. While using spreadsheets is a good way to start, this can become a challenge once your business grows and your financial tasks pile up. This is why more and more business owners are recognizing the advantages of using accounting software.
Accounting software is an application that records a business’s every financial transaction. SAP Business One is a cloud-based accounting software offered by DynamIQ with an integrated set of finance modules including financial reporting, journals, ledgers, budgeting, cost accounting, data migration, and banking. This accounting system in the Philippines is ideal for small and medium-sized businesses looking to increase transaction speed, improve cash flow visibility, and automate their daily accounting tasks for less time consumption.
Below, we discuss the advantages of using accounting software, like SAP Business One, for your business. Get your business’s finances in order and grow efficiently in this digital age!
Saves time
Did you know that on average, businesses spend about 300 hours per year just managing their accounts? However, a big chunk of the work in accounting is taken up by long yet repetitive tasks, such as:
- Creating an invoice for each sale.
- Tracking transactions and creating journal entries.
- Sending payment reminders to your customers or clients.
Fortunately, among the top advantages of using accounting software is that daily, repetitive accounting tasks can be automated. You can create journal entries, update your ledger, and reconcile transactions automatically. Once the software is set up it will save you hours of work each week, by managing several accounting processes automatically.
Instantly generates key financial reports
Likewise, you won’t have to wait days for financial reports to be tallied and put together — accounting software can also instantly generate key financial reports. They have built-in reporting capabilities, which are automatically updated every time you make a new data entry.
With a click of a button, you can prepare reports such as income statements, balance sheets, cash flow statements, and more. You can also customize your reporting needs by filtering or adding extra details to your reports if you need to see specific data or insights.
Collates all financial data
Financial data is often stored across multiple platforms, such as bank accounts, payroll services, and the like. This makes it difficult for accountants to collect the data they need.
Using accounting software can save them from the hassle of back and forth between data sets, as it allows users to sync data from all your linked accounting tools, accounts, and platforms. So you don’t need to spend extra time and manpower trying to put together a complete financial record.
As an executive, you can make better financial decisions with more data insight. You will be able to identify cost inefficiencies and make the necessary adjustments easily.
Enables collaboration
Remember all the times an accounting spreadsheet had to be downloaded and emailed to colleagues so that they could make additions, or have the most up-to-date version of the financial statements?
Accounting software gets rid of this headache by giving every user access to the accounting and financial data they need. They can also make updates or new entries as needed, and these changes can be seen instantly by other authorized users.
So all your employees have to do is boot up your accounting software, and they have everything they need to do what they need to do. No bottlenecks, no time wasted.
Real-time reporting
Real-time reporting is another great advantage of accounting software. Accounting software provides users with a dedicated dashboard, where they can track things like expenses, sales, and inventory in real time. So, you can easily monitor and track accounts and metrics you need to stay on top of.
Improves accounting accuracy
One of the biggest drawbacks to manual accounting processes is user errors. This tends to happen when people have to manually update multiple cells or sheets, just to reflect a change to their records. The more manual work people do, the more chance for error there is.
A top advantage of using accounting software is it allows users to improve their data accuracy, by automatically updating records to reflect any changes made.
Simplifies payroll
Many smaller businesses can rely on the accounting software to automate their payroll calculations, too. This is because, like with every other record, your accounting software can automatically calculate salaries, healthcare and insurance contributions, and other payments to your employees — and they do so with accuracy!
Provides complete financial oversight and control
You can also use accounting software to keep track of all transactions throughout departments, projects, locations, or accounts. Through your accounting software’s dashboard, you can easily gain a clear picture of what your expenses and profits look like — and where they’re coming from.
This not only gives you complete financial oversight, but it also helps you keep control of key financial areas in the company, such as your cash flow collections and disbursement. And, because everything is transparent and trackable, it makes it extremely difficult for anyone to commit fraud or theft in your company.
In the case that this problem does happen, however, the same system can be used to uncover where the money was taken from and who moved it. This is a crucial step in addressing this issue.
Streamlines the tax process
Accounting software helps with your tax calculations too! Since this software provides standardized financial reports and accurate financial data, it makes it easier for you to calculate and file your taxes. Some accounting software, such as SAP Business One, also has dedicated tax modules — such as the DynamIQ Tax Module — to help users stay compliant with their tax obligations.
Reduces inventory errors
This digital tool is also helpful for keeping track of your inventory — since this expense can be tracked on your accounting records. These records will automatically update every time supplies are used, or products are sold.
Accounting software can also make use of barcoding modules to provide real-time information on stock levels. This is a much easier way to manage your inventory and completely cuts out your need to rely on error-prone manual data entry.
Key Takeaway
The many advantages of accounting software show just how important this tool is for any business. With this technology, many businesses have automated such a complex and challenging process — and saved plenty of time and money, while avoiding costly errors.
Want to learn more about accounting software and other tools that can help make your business more profitable and efficient? Contact DynamIQ today! We offer the top cloud-based accounting system in the Philippines, SAP Business One!
