Accounting software can be solution to most of your financial data management problems. These softwares can help you in managing and processing your data.
These programs are usually used by the bookkeeping and professional accountant teams for automation of systematic operations and governing accounts. Certain softwares are also able to make reports on financial activities of a company, record the accounts data and measure indicators.
Types of Accounting Software
Accounting softwares are generally classified into different types based on their operations. Following are the different categories of accounting software:
ERP Systems
The Enterprise Resource Planning Software can handle and manage the operational portfolio that integrates all systems. These systems are utilized in various tasks such as inventory management, purchasing products, product planning, distribution, finance, control, accounting, marketing and human resourcing.
Invoicing Software
Also known as billing software is designed to manage a company’s billing activities. The invoicing software also offers its services in day to day tasks such as writing cheques and communicating the information about due payments to the customers by the company.
Payroll management system
The payroll management system functions to register the payrolls of the company. It serves to perform various tasks such as calculation of salaries of a company’s employees, depositing the paycheck directly into the bank account of the employees, production of tax forms and cutting deductions etc.
Benefits and Uses of Accounting Software
There are various events where accounting softwares can be utilized. Some of the advantages of accounting softwares include:
Simplification
These software provide automated calculations which are otherwise complex and difficult to handle. So these systems make it easier for even non accounting audience.
Cost-effective
With these softwares, there is no need to send money on training of individuals. All accounting operations can be completed with these systems easily without any need of hiring an external source. Not only that but there is no requirement of printing documents to be distributed among the staff, so these costs are also saved.
Accurate forecasts
An accounting software plays a major role in providing details about the trends and patterns of your company’s financial performance. This helps in determining where the money should be invested and where it should be saved.
Compliance of standards
These accounting softwares make sure that the legal standards are being followed in all the accounting operations.
Transparency
The chances of human errors are nullified by the use of these systems. Eliminating the human errors prevent from a crisis that can lead to a huge loss to a financial company.
Productivity
This digitalized service can make complex daily tasks easier. They can assist in collecting, organizing, and analyzing the outcomes of day to day activities. It utilizes the available resources thus increasing the efficiency.
Customer relationships
Although accounting software does not have a significant role in customer relationship management nonetheless by performing the tasks like billing, invoicing, preventing delays and avoiding miscommunication these systems can make maintain the company’s relation with their customers. Not only this but the accounting systems can help in sending reminders to the customers about their outstanding dues and also send acknowledgement notes to the clients.
Data security
By using the accounting software one can make sure that the valuable data is safe and does not fall in wrong hands.[i]
Top Rated Accounting softwares
There are various different accounting softwares which have been designed and have different features that can be really helpful for companies. Some of the top rated accounting softwares include:
- AccountEdge Pro
- FreshBooks
- Sage 50cloud Accounting
- QuickBooks Desktop
- Zoho Books
- AccountingSuite
- OneUp
- QuickBooks Online
- Xero
- Sage Business Cloud Accounting
- AccountEdge Pro
The most top rated accounting software has been found to be AccountEdge Pro. This software is fit and suitable for small businesses that are growing. It is an on-premise system that offers remote access. This accounting software allows you to go through an entire accounting cycle.
- FreshBooks
The second accounting software is the FreshBooks system that can serve both freelancers as well as sole proprietors. It is the best software not only for freelancers but also for professional accountants, attorneys and all other expert retainers who charge fee to their clients.
- Sage 50cloud Accounting
Also referred to as Peachtree Software, it is a hybrid accounting solution installed on-premise including an option for remote connection with the application. It allows multiple plans and is good for small growing businesses.This software also consists of a solid inventory module which offers integration with more than one point-of-sale (POS) applications.
- QuickBooks Desktop
Another top rated accounting application is the QuickBooks Desktop 2020. It has several new and vital features designed to streamline processes. These features are as follows:
- Automated payment reminders sent to customers with outstanding payments
- Improved system navigation
- Expansion of help capability
- Allow the consolidation of invoices in a single email
- Zoho Books
Zoho Books is a good option for people who are starting a new business, are freelancers or sole proprietors. It not only offers affordability but also consists of vital features like inventory management. It is also helpful for new users as it provides step-by-step directions from general setup to making an invoice.
- AccountingSuite
AccountingSuite offers major features such as cloud accessibility, solid accounting capability and bank connectivity. It can connect upto 9,000 financial institutions. It also offers a purchases module with which you can manage bills and invoices.
- OneUp
OneUp is an ideal application for freelancers as well as sole proprietors. It includes an inventory management module which is great for retail businesses.
- QuickBooks Online
QuickBooks Online is one of the most recognized small business accounting software. It is easily accessible and suitable for growing businesses.
- Xero
Xero is also an online accounting software offering the benefit of running business online. It can help you to have top business performance even without having a vast knowledge on accounts.
- Sage Business Cloud Accounting
Sage Business Cloud Accounting offers solid inventory management but does not have payroll feature so it might not be the best option for your business if you have to pay your employees.[ii]
[i] https://tallysolutions.com/erp-software/accounting-software-and-its-benefits/
[ii] https://www.fool.com/the-blueprint/accounting-software-reviews/
