Not everyone is good with numbers. In fact, some people argue that some accountants cannot even count accurately. Conventional bookkeeping methods are outdated and face a lot of competitive challenges in today’s technology-driven world. The need to ensure the highest level of accuracy, security of company information, proper file-keeping for easy retrieval and reference, and the ability to cut on accounting costs are some of the main reasons people prefer computerized accounting.
Going digital in accounting with tailor-made solutions, as opposed to off-the-shelf options, provides a lot of benefits to the organization. In fact, a single software program can take care of a myriad of operations, such as invoicing, making payments, generating reports, and even quickly prepare payroll. This is how automated accounting saves you time and money.
1. Real-Time Financial Position and Reports
It is important that crucial financial information be available in real-time. Most companies require weekly, monthly, quarterly, half-yearly and annual financial reports, and it's going to be hard to fulfill that requirement if the only tool at your disposal is a calculator and a spreadsheet. The state of the company’s financial position must be readily accessible at all times, especially when major decisions have to be made. It is, therefore, important to use accounting software that management can access for instant reports and summaries such as payroll analysis, VAT returns, trial balance, debtors, stock valuation, budget analysis and sales analysis, among others.
The beauty of computerized accounting is that the software can be customized to suit your specific business needs. Working closely with the developers (some can be outsourced remotely from Freelancer.com), can add as many practical features as you like. Some practices you can automate include:
· Recording and updating of suppliers’ invoices
· On-screen input and printing of sales invoices
· Updating of customer accounts in the sales ledger
· Adjustment of stock records
· Payroll and similar entries’ calculations
With accounting software, there is no limit on the number of features you can include in a single application.
3. Go for Convenience
You must ensure that your computerized accounting program has an input screen with a user-friendly interface. Here, you don’t have to worry about double manual entries as every transaction can only be entered once. An integrated computerized ledger can ensure that a single entry is duplicated across other accounting records. Saving information on multiple records ensures that no data is lost.
4. Think About Speed
One important factor that you have to bear in mind when considering a computerized accounting solution is the speed of executing procedures. In most cases, inputted data is linked to other elements, such as stock records or built-in customer databases. This not only minimizes errors, but is also much faster compared to manual systems. Furthermore, the data that is entered can be accessed by authorized parties regardless of their locations.
5. Train Your Staff for Efficiency
If you are just rolling out a computerized accounting solution, you must train the staff on the most effective way to use the solution. Studies indicate that training sessions can motivate staff and trigger their eagerness to learn. Refresher courses are highly recommended, especially whenever the software is upgraded.
The Bottom Line
Other than the fact that computerized accounting solutions enables better time and resource management and improved debt collection, it is also important in realizing improved cash flow through customized inventory controls. At the very least, it simplifies the handling of foreign currencies.