The Use of Accounting Software Package in Small Business ...

Use Accounting Software for Small Business - Tel Asiado

The significance of using a small business accounting software is in the value it provides, as data entries and reports are processed and accessed faster.

Years back, almost all accounting tasks were done manually. The business accountant and/or bookkeeper must keep records of expenditure and income, and activities got frantic often at the end of the fiscal year. Today, this technique has practically become obsolete since small business owners started to computerize their accounts.

Advantages in Computerizing Accounts

Today, recording the control of revenue, costs expenses, and practically all related recording and bookkeeping tasks are processed using accounting software packages. In fact, computerization of other business systems has been integrated alongside the accounting system, tying up the business systems, including softwares for project management, inventory monitoring, and performance measurements, to name a few ? anything that can provide valuable information to meet the business needs.

Computerizing accounts is not just about keeping up with technology; most importantly, it can save time, effort and money in the long run. Among others, it can provide efficient services, including salaries, calculation of taxes and other tasks that entail long hours of work by using manual accounting and bookkeeping.

Different Types of Accounting Softwares

In terms of functionality, there are many types of accounting software packages available. In general, they have the following functions and benefits over the spreadsheets and manual-based systems, such as:

• Routine tasks like entering direct debits and standing orders set up to be processed automatically on the correct dates.
• Sales invoice entries will automatically update both sales and debtors accounts.
• Bank reconciliations and related documents can be completed quickly with much accuracy.
• Management reports such as profit and loss, performance comparisons against previous months and years can be easily produced and accessed faster.

Choosing the Right Accounting Software Package

There is no ideal solution for all businesses. The right software will depend on the particular needs of the business. Basic tasks include:

• Accounts Receivable ? Sales, Invoicing and Receipts
• Accounts Payable - Purchases and Payments
• Banking and Cash Management
• Cost of Sales, value added tax (VAT) and payroll
• Inventory ? Stock Control

Business owners may need the advice of an accounting advisor, if necessary, to draw up the list of features the business requires, and to decide on the person who is responsible for managing the accounting software. Once these are drawn up, the business owner can look for the accounting software package that meets the requirements.

Small business owners can choose from many accounting software packages available for small businesses including those working from home. There are web-based accounting softwares, some with free download that can be used to access small business financial data online.

Added Value of Accounting Software to Small Business

In today?s 21st century technology, many small businesses that used a manual system and spreadsheets in the 1980s have progressed into setting up a computerized accounting system. It is because they've come to realize that implementing the right software package can save money, time and effort in obtaining useful management information much faster, assisting the business in its day to day operations and decision making.

Readers may want to check related article: Small Business Accounting Software and Accounting Advisors.

Copyright Tel Asiado. Contact the author to obtain permission for republication.

Source: http://telasiado.suite101.com/the-use-of-accounting-software-package-in-small-business-a391545

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