When you run a business, finances play a crucial role. Insufficient funds can eventually create hurdles in the business, and hence tracking and monitoring the fund flow becomes essential for the company. Earlier, businesses used to perform the same manually through spreadsheets. But now, there are many tools that can help in implementing all the rules of accountancy. But why should any business opt for such an option? What will be the advantage of accounting software? Let’s try to find the answers to all such questions.
13 Top Advantages Of Accounting Software
1. Save Time
For businesses, time is money, and like other software, accounting software can help in automating the entire process of recording financial entries and creating financial reports according to accounting rules. It will save you hours of work in handling your books of accounts. For example, you don’t need to review each transaction manually and can even download a CSV file for getting a collective report. Doesn’t it sound easy?
2. Sync Data From All Sources
Your financial data may be stored on different platforms like cash data in the cash book, payroll details with HR, bank details with the bank, etc. With accounting software, you can synchronize the data from all the sources to a single platform. It helps in compiling the data and generates a report. It will add convenience to the entire process. Moreover, there will be no requirement of manually entering data.
3. Reduced Chances Of Mistake
Humans have the tendency to forget a few things or miss a few things. With accounting software, the chance of making mistakes reduces as you don’t have to update the cells manually. Moreover, any change in the records will update the reports without making any effort. So, when accuracy is the concern, then choosing accounting software is the best option.
4. Generate Financial Reports For Decision Making
Administration requires financial reports to make decisions. The foremost advantage of accounting software is that it can help in creating meaningful reports with a click. You can get a Profit & Loss statement, cash flow statement, balance sheet, etc., without making any effort. You can further filter and search data according to your requirement.
5. Can Handle Your Payroll
Usually, your HR team will have a specialized payroll system to calculate the payroll of each employee and mark the status of the dues. But with an accounting software application, you can manage the payroll without any specified payroll system. Moreover, you can calculate the payments to employees under different heads like special allowances, insurance, healthcare, taxes, etc.
6. Get In-Depth Insights Into Business
Do you want to track the transactions and get an insight into each department, branch, or project? Then a reliable accounting software can be helpful as you will be able to track transactions from various resources and club the one with the same source. This way, you will be able to make the decision for planning the strategy ahead.
7. Manages Inventory
The business may be having inventory management software for which you may have invested some money. With a reliable accounting software tool, you can manage your stock without investing extra in any other tool. It will include calculating the products in stock and the products that need to restock. Moreover, you can even access real-time information easily.
8. Helps On Monitoring Finances On A Real-Time Basis
When you use a manual accounting method to maintain books of accounts. Then one needs to insert the details and then prepare statements. With an accounting statement, you can save your efforts in preparing statements and keep a continuous watch on the cash flow and financial position. This way, you will be able to predict the upcoming issues and resolve them beforehand.
9. Facilitates In The Tax Filing
Filing taxes is one of the most important activities to operate the business legally in the country. The taxation system is complex, and people have to spend many hours preparing a statement and calculating taxes. One of the benefits of accounting software is that it helps in tax filing. It includes tax credits, generating tax reports, etc.
10. Easy To Use
Using a new software sometimes seems to be a tedious task as you will require some additional time to learn all the features. But when you are using a leading and trusted accounting software, this problem is resolved. The tool will have a user-friendly interface and minimize your efforts in keeping your financial books. Moreover, you will even get customer support which will provide you help instantly.
11. Automated Invoicing
Every business needs to generate an invoice for all the customers. It will also help in keeping a record and filing GST return as you need to present the invoices. Moreover, you will get an insight into how many payments have been received and how many payments have to be collected in the future. This way, you will be able to send a payment reminder to your debtors and minimize losses.
12. Generates Financial Statements That Fulfill All Compliances
Every statement has a predetermined layout according to professional standards. One of the accounting software advantages is that the reports prepared by these tools match up with a professional format. You can download and share it with your team.
13. Control All Processes Centrally
There are a lot of processes performed in the business, like inventory management, payroll calculation, tax statement preparation, etc. If you invest in great software, then you can get the chance to control all these processes centrally on a single platform. It saves your time and investment in other software. Furthermore, administration becomes easy.
Marg ERP: The All-In-One Solution
This application is planned according to present requirements and can offer all benefits of accounting software. It is a cloud-based tool that can help in managing all the processes and preparing all the statements required to file GST accurately. With cloud technology, you can even access the data from anywhere and collaborate with other people in the team. So power up your finance team with this smart tool.