Like most digital tools, accounting software allows you to
automate tasks and enter data faster. In addition to reducing errors, it
increases collaboration between different departments by keeping all your financial
information in one space.
In addition to keeping your finances organized, online
accounting tools keep you in compliance with local, state, and federal tax
laws, helping you avoid problems with the IRS.
Additionally, accounting software companies continue to make
their applications easier to use, which means (depending on the size of your
business) that they can eliminate the need to outsource accounting, saving you
money.
What are the features of accounting software?
Now that you are familiar with what business software Malaysia
is and why you should use it, it is important to know what tools and features
to look for when choosing a system. Almost all online accounting software uses
double entry accounting to ensure accuracy and have accounts receivable,
accounts payable, banking and reporting functions. Some also include tools for inventory
management, project management, time tracking, and payroll, although these
features are usually found in higher-level plans or add-ons that cost more.
Here are some basic elements of accounting software.
1. Accounts receivable
Accounting software systems must be able to handle billing,
keep track of what clients owe (accounts receivable or debtors) and their
payments. Here are some of the top A / R features to look for.
Invoice processing
At a minimum, your accounting business software
should be able to handle billing. When you are owed money, you need to know
from whom, how much, and when to expect payment. All accounting systems allow
you to print invoices, and most allow you to email them. Your system must
remember basic customer information, such as names, addresses, account numbers,
and standard terms. Most of today's software systems also remember their
standard price for a wide variety of products and services.
Automatic billing
This ensures that revenue is never delayed because you
forgot to send an invoice. Plus, with automated statements and late reminders,
the accounting software acts as your collections department, reminding
customers to pay their bills.
Processing payment
Many accounting systems allow your clients to pay their
invoices online by clicking a button on the electronic invoice that you send
them. The benefits to the provider are many, including less staff time spent
processing checks or making bank deposits, greater security for payments, and faster
processing times. However, there are costs involved. Expect to pay similar fees
to credit card processing companies for your accounting system to handle debit
and credit card payments.
Some systems allow ACH payments to be deposited directly
into your checking account, and there's nothing like payments that
automatically go into your checking account every month without you having to
wait for checks in the mail or run to the bank. Although there is often a fee
for this as well, it is generally less expensive than accepting card payments.
2. Accounts payable
Nobody likes to pay bills, but keeping track of what you owe
is essential to any business. The way your accounting system handles the
outflow of your funds can vary. Here are some of the more useful accounts
payable (A / P) features.
Purchase orders
Managing your purchases and what you owe is one of the main
tasks of
accounting software, but how it works can vary, from producing simple
purchase orders to tracking quotes to purchase and payment.
Vendor credit notes
It is easy for a company to lose track of all the credits
that suppliers usually give, either as rewards or returns. However, credit
notes are just as valuable as cash, so a system that can track them helps keep
costs down.
Automatic payment
From scheduling bank payments and direct deposits to
printing checks, many A / P modules can fully automate your payment processes,
ensuring you are not left behind.
Comments
Post a Comment