There are many roles of account software. Accounting and business both have a very deep relationship and accounting software are helpful tools. In simple words, we can say that both cannot exist without each other. Businesses can have 3 types of accounting to track their expenditures, income, and working capabilities. Three types include Cost Accounting, Managerial Accounting, and Financial Accounting. In addition, there exists different software available in the market to manage these accounting types. In this article, we will be discussing accounting software and the role of accounting software in our businesses.
What is an Accounting Software?
Accounting software is a program that does many things including accounting tasks and bookkeeping for a business or a specific system. Moreover, it possesses the capability to store financial information, handle data and it often performs business transactions too. This software offers useful tools to create invoices, bills, payrolls, and financial reports for a business task. There are also other important uses of accounting software described in comping sections but before going to that let’s have a look at a few most used software for business management and their characteristics.
The Main Role of Accounting Software:
Business account software is a helpful tool that tracks the inflow and outflow of cash for an organization. These tools provide functionality in generating General Ledger, Account Receivables and Account Payables, etc. Different software applications are developed by different service providers so that business owners could buy and use them for better business management. Some of them are free tools and some are paid ones. It is obvious that free tools lack good features as compared to paid ones. Tools are ranked on the basis of their activities/ services, pros, cons, and reviews.
1. QuickBooks Online:
As a business owner, you need a reliable and stable software system. An account that would handle your accounts and keep track of your books for better management. By all means, the QuickBooks Online tool is the best system to do these activities. Like other accounts software, this software tool’s main role is to organize business activities with the set of use pros and cons.
Advantages of the software include:
- Accuracy and efficient results which are highly demanding for a business.
- It integrates your results in a very efficient way to increase the productivity.
- It gives runtime and quick results.
- You can access your data from anywhere in the world because it uses cloud computing and with the help of a mobile application it is easier to communicate on tiny devices.
- It is also featured with expert advisors and support to let you know tips and tricks. Almost 7 million small business owners are using this software. It is a paid tool which take from $25 to $180 per month, less prices for simple plans and more prices for higher and efficient support plans.
Last but not the least, this tool has disadvantages in terms of that it can be an expensive system for very small businesses where their budget doesn’t allow them to buy these services.
2. FreshBooks:
FreshBooks is an amazing tool with its customizing features, it is designed to suit the accounting needs of a business. As an entrepreneur, it fits in the ideal accounting software for small business management without any industry difference. It doesn’t matter whether you are an entrepreneur freelancer or a businessman, you can equally enjoy the services of this software. This system includes double-entry accounting. It is available at cheaper prices in which light budget plan might cost $8 to a premium cost of $25 a month with multiple functionalities. You can also go for a customized package and for this one price will be going up and down depending on your desires.
While talking about pros, FreshBooks have the following advantages:
- It is helpful tool in doing comprehensive accounting, invoice generation and efficient organisation for income and expenditure of a business.
- This tool gives smart reporting functions.
- Moreover, it has ability to track time and automatically put those hours in the invoices.
- It is obtainable in reasonable prices.
- One can access the data anytime from any part of the world.
- It has integration with more than hundred third party tools.
A few disadvantages of this tool include, the customizable plan that might stretch your expenditures and the simplest plan of this tool will give you very limited functionalities.
3. Xero:
Another useful tool is available for business management which is uncomplicated and contains robbers set of functionalities known as Xero. This tool contains many features to gather your business in one place. It is workable whether it is about account advice or any planning and hence it became an ideal option to go when you want to do all things on a single platform. It works on cloud-based technologies. Bookkeeping, Account Management, and In- time activity is prime features of this tool. It offers free 30 days trial and then you will have to purchase one of the packages. You can get 24/7 online support from the customer care department. Prices of this tool are divided into three packages including a starter package accessible at $20, the standard package is obtainable at $30, and the premium package with multiple features is $40 per month.
The advantage of this system includes:
- Helpful system for comprehensive accounting management of businesses and sole professionals.
- Next, it offers integration with number of tools and solutions.
- Provides customisation of features that will suit your workflow.
- Gives real time management and access so that you can work as a community with no waste of time.
- A powerful report generating tool that give you precise picture of your finances and accounts.
- Directs you in the right direction and guide you to make the right decisions.
- It can be accessed remotely and use of mobile application is a helpful tool of this system.
- This system is also helpful in inventory management.
In the end, it has cons related to pricing. You will have to pay more for a customizable plan and less for a simple one with limited features.
Role of Accounting Software in Businesses:
1. Money and Time Saving:
Software is a program designed to reduce time consumption and to provide a certain set of features to do your tasks quickly. Accounting software applications are helpful tools in minimizing time utilization and money consumption. When different software tools are available in the market they will offer different features with different pricing so, it will be your choice to make the right decision and decide which tool to use for your business management. And hence you will be able to save money and time according to your desires.
2. Cash Inflow and Outflow Control:
Cash inflow and outflow are accounts dependent which are handled with the help of this software. Also, You can control your business cash flows by checking the quicker and accurate report generated by your favorite tool. Hence, this will help you increase the profit ratio and reduce losses.
3. Taxes Preparation:
One of the most prime features of business account software is report generation in accordance with this functionality, the company will be able to prepare its tax payments reports prior to the deadlines. The reports are helpful in analyzing the other important cash flows, income, inventory, and different important business components. Also, useful in analyzing where the company is standing.
4. Reliability and Security Assurance:
When it comes to using cloud computing technologies almost all accounting software is reliable and secure. Because cloud computing services provide high security and reliability assurance by service providers. There remains a very small edge of issues to occur in the system.
5. Customizable:
The user gets a choice to customize the features in the tools. Moreover, you can buy your desirous package and decide the features you want to buy and you want to quit. In basic packages few and limited functionalities are accessible but within customized packages, you can avail yourself of features of your choice.
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