Accounting software is a tool that performs various accounting, bookkeeping and other financial functions. It is used by the firms to record, analyze and store business transactions. Accounting software can vary from simple, single-entry programs used for the small firm to more advanced, double entry systems that can process accounts receivable, accounts payable, inventory and payroll, among other functions used by large firms.
The impact of technology has changed basic accounting software. Today, it works with Customer Relationship Management, Human Resource Management, Supply Chain Management, Reporting Applications, and Dashboards. The key focus of accounting software in recent days is workflow, simplification, cloud computing and customization.
Why Accounting Software?
Accounting software is a clear substitute for manual management of financial records. Here are the reasons why.
Simple and Easy to Understand
A budding entrepreneur or a new employee with little to no training can use accounting software. It can be used in your own computer or mobile device.
From simple transactions to the final analysis of data, one can use the accounting software without outsourcing the work to an external expert.
An accounting software takes care of financial data which is the most valuable information of the company. By using it, you can decide who has access to sensitive data.
It is difficult to understand the pattern and trends of your financial performance. An accounting software can assist you in investing and cost-cutting strategies on the basis of your financial data.
Increase in Productivity
A software can work faster and smarter on transactional and computational tasks compared to a human. You can get an error-free and more precise transactions on accounting software compared to manual work.
Features of an Accounting Software
An accounting software comes equipped with the following features:
An accounting software incorporates the rudiments of accounting, including general ledger, accounts receivable & payable, bank reconciliation, fixed assets and much more.
2. Budget Estimation and Forecasting
The software helps in calculating the budget for current year and estimates for the upcoming year. You can set up feasible and optimistic sales targets according to the estimated budget.
3. Inventory Management
You can control the availability and movement of your products using an accounting software.
4. Billing & Invoice
An accounting software helps in preparing accurate and timely bills and invoices.
5. Payroll Management
The software is capable of calculating and processing employee payments without any delays or errors.
6. Management of Fixed Assets
Accounting software invariably includes features such as audit history, depreciation calculation, resource allocation, cost record, etc.
Types of Accounting Software
1. Billing & Invoicing System
It helps a company to perform its basic, day-to-day tasks, including writing checks, and reminders for customers on their due payments. Billing & invoice systems hold control over the accuracy of accounting figures and make service look more credible and professional to the end recipient.
2. Enterprise Resource Planning System
This is the most popular accounting software category, and includes systems helping material purchasing, inventory management, and control, product planning, accounting, marketing, distribution, HR, and finance. The latest software also offers modules for business intelligence and CRM.
3. Time and Expense Management System
The main motive behind this system is to help collect payments faster and detect slow and inefficient practices that were not visible before. It also produces detailed geographical reports on how the available resources and time are being used in the company.
4. Payroll Management System
A payroll management system allows you to have control over accounts payable and accounts receivable. The tools were developed to calculate employees’ salaries, depositing the salary directly into employee’s bank accounts, cutting deductions, and preparing tax forms & payslips.
JAXA's Software Consultancy Services
JAXA is a financial consultant in Dubai, and offering a wide range of services including accounting, auditing, software consultancy, and management. We hold ISO 9001-2008 certification and include the experienced auditors, accountants, and expert teams offering international quality driven services to our clients.
As software consultants, we conduct a systematic study of our client’s requirements and recommend the suitable accounting software pertaining to the client’s needs. Further, we also assist and execute implementation of reputed accounting software often used in the UAE.
Can I add additional functionalities to the current accounting software package?
Yes, you can add additional functionalities. You can purchase the additional modules to your current package.
What is the difference between cloud-based and server-based applications?
You can access your data remotely any time in cloud-based applications. But in a server-based application, you need to have a hardware connected with the server. You need to pay a monthly fee in a cloud-based application and you don’t own the software license. The traditional server-based application allows you to own a software license.
Why do I need a software partner?
Your software partner will help you in implementing and upgrading your accounting software. They will also train your employees and help you in knowing more about the accounting software.
Is it safe to put financial data in the cloud?
Yes, it is safe to put financial data in the cloud. Today, software publishers give more importance to security when building a software.