Wednesday, April 29, 2009

How accounting software helps

By Cheryl L. True

These days accounting software forms the backbone of most businesses and the right package can improve your decision-making and responsiveness, which in turn leads to increased productivity and profitability.

Business staff needs to be able to access the right financial information whenever it is needed. Any business manager needs a completely accurate picture of their business operations at any time, not just at the end of the month.

Accounting software has come a long way in the last few years. It is no longer just about invoices, payments and payroll. It can link together every single aspect of a business from customer relationship management to dispatch and delivery.

Your accounting package needs to integrate with your existing systems allowing staff to extract and input data easily via applications that they use every day. This avoids the re-keying of data which is time consuming and can lead to errors.

Business managers need financial information on a daily basis in order to make the right decisions and respond effectively to issues as they arise. If they have to wait for weekly or even monthly reports, they are working blind for most of the time. Your accounting package should allow you to access data in real time.

You need to be able to produce management accounts and other reports for meetings, presentations and mailings, often with minimum notice. A good accounting package will allow you to do this easily either using ready-made templates or specially customized reports.

Sales orders and timesheets can be completed electronically by individuals across the organization, even by those working remotely, and sent straight into your accounting system updating the records immediately. This removes the need for manual records, reduces admin and ensures more accurate data.

It provides you and your managers with an instant overview of your profitability, sales pipeline, debtors etc as well as the detail of each individual transaction. It should allow you to track each order from start to finish. This can all be done in a matter of minutes, allowing managers to spend more time improving customer service and developing your business.

As organizations become more and more reliant on their IT systems, security of data becomes increasingly important. In the event of a power or hardware failure valuable data can be lost so it is important to ensure that your system is completely secure and saves each transaction as it is entered.

Flexible and remote working is becoming more common and these people also need to have access to your accounting system so they can view the relevant information and input data as appropriate. They may be out of the office for days or weeks at a time but need to keep in touch with what is going on and to update customer records.

As your business grows your system will need to evolve to cater for more users - possibly at different sites, new products and services, new channels and markets and inevitably new internal processes. If your accounting package is not flexible or powerful enough to grow with your business, you may find you spend more and more time and money trying to fix problems, and ultimately your system will prevent you from moving forward.

For quick and easy accounting solutions to manage your business, use quickbook web.

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