Though spreadsheets have been helpful in accounting processes for many years, they can’t meet the demands of modern business. Accounting software is now widely used by many sizes and types of companies. It may be desktop software installed on an office computer or cloud software that can be accessed from anywhere. These systems provide features such as time and attendance tracking, direct deposit, check printing, storage of payroll records, form printing, management of multiple money types (i.e. tips and commission), deduction calculation (taxes, insurance, retirement) and tax filing. There are numerous advantages to using one of the many accounting software packages.
- Reduce costs: Processes that took several hours and required a team of workers can be accomplished by a single employee in a few hours allowing for a reduction of the number of staff in an accounting department.
- Increase efficiency: Accounting software performs tasks automatically or requires only a few minutes of time freeing up team members to focus on more important tasks.
- Reduce the need for specialists: Learning to use accounting software is relatively easy allowing you to assign the task to an employee without an accounting background. It’s simple to train several employees in its usage making it easier to cover vacation or sick leave.
- Minimize errors: Since data is entered only once and withholdings are automatically calculated, the risk of human error is significantly decreased.
- Track inventory: Many quality software packages can track product inventory and provide up-to-date details on the amount of stock in hand.
- Generate reports: Accounting software provides detailed reports on your business processes and helps track money flow in your organization. You can get a clear picture of your costs and revenue at any time.
- Ease access: Information (historical and current) is stored and easily and securely accessed by supervisors and/or managers. Benefit information is available to employees who can make and review claims online. You can review, reprint, and resend invoices if needed and easily search by invoice number, name and/or amount.
- Protect the environment: Accounting software decreases paper usage reducing your carbon footprint and eliminating excess waste.
- Enhance data security. Most accounting software uses state-of-the-art security to protect sensitive data and reduces the need to send private information to a third party.
- Create an audit trail: With accounting software, you can easily review payments and check tax in a matter of minutes.
- Ease use of multiple currencies Many accounting packages allow a business to trade in multiple currencies with ease. Problems associated with exchange rate changes are minimized.
- Increase compliance with the CRA: Some systems provide reminders of filing deadlines reducing penalties and keeping your business compliant. They’re programmed to calculate deductions and taxes for your location and can access updates related to tax codes and changes in tax law. These programs can be set to alert key people to review new compliance requirements.
Reduce costs, increase efficiency, minimize errors, ease access to information, enhance data security and increase compliance by using accounting software. Choose a system with tutorials, a comprehensive support services package and features that suit your business needs. You will not regret the investment.