What is accounting software?
Accounting software is a software used by bookkeepers, accounting professionals, and business owners of an organization to record flow of money for accounting transactions and manage accounts for internal and external review and auditing. It is an important tool for analyzing the financial health of your organization and for meeting legal compliance through tools like general ledgers, account payables and receivables, purchase orders, stock management, and billing.
How does an accounting software help in business accounting?
Taking a business’s financial picture into account involves multiple tasks that are complex. Many SMBs consume more time doing them manually. However the presence of an accounting software for small businesses shall help simplify these processes. This gives business owners ample amount of time to focus on the administration and operational strategies. In reality, accounting software is the company’s valuable asset which significantly helps in boosting the finance department’s efficiency.
The important benefits business have with an accounting software:
Simplification: Accounting systems put finance control in the hands of a non-accounting audience, designed to give numbers while performing automated calculations. With some training, they can manage all accounting operations using their computers or mobile devices without paying external parties to keep their budgets under control.
Cost savings: Accounting and finance software automate core calculations and administrative procedures and take control of your revenue framework so that you won’t have to outsource finance management to an external expert. The software can also reduce the costs of printing and distributing documentation because the system stores all data digitally in a safe and monitored location.
Data Accuracy: According to accountants and auditors, one of the important benefits of good accounting apps is reducing human error that usually occurs during calculation and data entry. Inaccuracies in financial statements could lead to crises that impact your business life span, and the accounting software can keep these issues from happening.
5 Reasons to use SAP ERP as Financial Software
A lot of you would be comfortable in using your favorite accounting software which stores your company’s financial data. But it needs to be replaced by an integrated ERP solution to save your business from the counterattack of lost sales and dissatisfied customers! Integrating ERP systems allows you to access the entire business data, to gain greater visibility into your daily operations. 5 main reasons to use ERP instead of accounting software are as below:
Complete View of financials and business: Many enterprises use ERP accounting software to predict behavior and identify patterns of everyday business processes affecting sales, marketing, and supply chain management. SAP Accounting Software provides complete financial reporting through charts, graphs, and visual aids.. This helps businesses forecast future outcomes and manage risks more effectively.
Streamlined Business Processes: Financial records that aren’t accurate may hurt the business. When making decisions about business investments, the accuracy of the financial reports is crucial. An ERP sets up standardized processes to accomplish real-time financial reporting and efficient distribution of financial data. With the implementation of SAP Business One ERP, financial accounting is more precise because it is based solely on standard information accredited in the system. Most businesses automate accounting tasks like auditing compliance and reconciliation through ERP to reduce the need for manual entry.
Increased Automation: Automation enhances productivity. ERP and accounting software are linked, so workflows can be automated more easily. The presence of an ERP automates the procedures related to finances and accounting. For example, automation streamlines receivables and payables management and cash management. It allows businesses to track their financial transactions more easily.
Cost Savings: With ERP, a business can reduce operating costs and save labor costs by automating business processes and integrating delivery planning and management tools, communication functions, and order processing features. A logistics ERP system is designed specifically for logistics, integrating delivery planning, order processing, communication & management capabilities into one system. It also offers organization the possibility of maintaining customer database that makes it easy to view ongoing and completed deliveries.
Better Control of your Business: Implementing an ERP system for accounting processes will give you more control over your business. Employees gain an improved view of each process along with the data to show what needs to be improved. In any industry in which things are constantly changing, we need to make sure we have control over the various aspects of the business in order to be successful and stay competitive.
How SAP Business One handles Accounts and Finances for SMBs
With SAP B1, you have the best accounting software inbuilt which handles your company’s finances well under control. One stop solution for accounting, bookkeeping, financial planning, and working with the chart of accounts.
Financial Planning – You can easily create budgets, assign accounts, and allocate budgets with SAP software. You can manage your entire financial accounting within one system, including budget control, reporting, and warnings when exceeding the budget.
Bank Settlements – Monitor all banking transactions with SAP ERP solution. Cash withdrawals, checks, down payments, credit card payments, and account reconciliation are all included.
Reporting – It is possible to create financial reports easily, including balance sheets, P&L statements, cash flow overviews, and budget reports.
Journal Entries – The SAP software for mid-sized businesses provides integrated financial accounting. The ERP system automatically creates journals for transactions in sales, purchasing, and banking. Or, create new journals with the SAP SMB software.
Financial Report Templates – Based on business needs, you can easily create number of templates for financial reports in SAP B1. This also includes additional profit and loss statements.
Conclusion
The use of an ERP system will help you gain better visibility into operations, leading to substantial cost savings. You will also experience several major benefits when using an ERP system. It streamlines and automates most important financial and accounting processes that you just can’t find in a traditional accounting software. With the expertise of SkySurge in implementation and customization capabilities of SAP Business One, it helps you in reviewing financial statements and get ahead in the plan for the future to be competitive in the industry even if you are a small business or a large enterprise.