Best Accounting Software for Small Businesses | Busy
Best Accounting Software for Small Businesses | Busy

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Date: 16 Sep 2022


How to Choose the Best Accounting Software for Your Business in 2022

What is Accounting Software?

Accounting software is a business management software used by companies to keep track of transactions, process information, and present it in the form of reports that paint a complete picture of the firm. You can manage numerous accounting jobs and keep track of all the financial documents.

Accounting software facilitates effective and rapid processing of financial information by automating the recording of accounting data. Accounting software is used by bookkeepers, tax experts, and other accounting experts in addition to corporations.

 

Why is Accounting Software important?

Accounting Software captures a business’s entire financial structure. Most tasks are automated, saving time and reducing stress compared to those done manually.

  1. Saves time.

Your accounting software requires initial setup time, just like any new system. Once set up, it will automatically handle time-consuming manual bookkeeping and accounting operations, saving you hours of effort every week. For instance, accounting software eliminates the need to manually enter data into a spreadsheet and download CSV files from your bank or credit card accounts to evaluate your transactions.

  1. Enhances data accuracy.

If you change your records, accounting software eliminates the need to manually update several cells in numerous sheets. Instead, any adjustments you make will be automatically reflected in your financial statements and reports, assisting you in maintaining accurate data. 

  1. Makes payroll simple.

While you'll eventually require a specialised payroll system, many small businesses manage their payroll using accounting software while their business is still expanding. Accounting software allows you to compute healthcare and insurance contributions, automate employee payments, and obtain precise payroll tax data.

  1. Streamlines tax filing.

Your tax accountant will have an easier time filing your return and figuring out the possible tax credits if you have standardised financial accounts and correct, organised data. Some accounting software packages additionally have built-in tax-specific reports, such as those for sales tax and payroll tax.

  1.  Inventory errors are reduced.

Basic inventory management features that update automatically to display how many of each product you have on hand, what has been sold, and when you need to refill are included in specific platforms for accounting software. Instead of depending on error-prone human data entry, accounting software is an easy way to acquire accurate, real-time information on your stock levels.

  1.  Financial data is synced.

Going back and forth between platforms to get the required information can take hours if your data is spread over several different platforms, such as payroll services, credit card accounts, and bank accounts. Accounting software will sync the data from all your online accounting tools via API, saving you the time and effort of downloading financial data from various sources and manually entering it to create an accurate financial record.

 

Key Features of Accounting Software

  1. Financial Accounting

Using this accounting software, everything from accounting activities like vouchers to ledgers to trial balances and balance sheets is accessible with the click of a button. This accounting software helps in the decision-making process for business owners.

  1. Inventory Management

Organise your inventory by adding details like batch numbers (including expiration dates), serial numbers, and parameters (Colour, Size, Style etc.) Easily manage numerous go-downs and locations with this accounting software.

  1. Configurable Invoicing

Quickly generate professional bills that are GST compliant according to business requirements. With the help of this accounting software, you may record good purchases by party, product, and date.

  1. Comprehensive GST Module

With features like GSTIN Validation, GST Reconciliation, E-Way Bill & E-Invoice Generation, and other GST Accounting Software capabilities, manage GST from Billing to Return Filing.

  1. Operations Management

Using this accounting system, efficiently manage your business activities, including payroll and customer support, Indent, Quotation, Order, Challan, Invoicing, Receivable, Payable, and Customer Support.

  1. Mobile App

Stay connected to your business data on your mobile device wherever you are. You may make informed business judgments using account software's timely access to data.

Factors to consider while choosing Accounting Software

Make sure you know what you need and what features to search for before you start looking for accounting software for your company. The market is flooded with several accounting software features, making it difficult to choose the right system for your company. Prioritising your desired characteristics according to your accounting requirements, usability, and cost can help.

  1. Easy to use software

A key aspect of purchasing an accounting system is usability. The user-friendly software provides a dashboard with charts outlining your company's financial situation. It's constructive to see all user activity in one place, the amount of money that has entered or left the business over the last six months, and any invoices or bills the business is responsible for. Your bookkeeping and accounting should be accessed conveniently.

  1. Transactions with Multiple Currencies

The distance between customers and businesses has decreased because of the internet. Even tiny businesses now cater to international customers. If you have clients like this, check to see if the accounting software supports multi-currency transactions. Additionally, it must manage conversions and currency rates for your convenience. These transactions must also be displayed in your base currency.

  1. Protected Data

The usage of web-based accounting software is a current market trend. Desktop-based software products are rapidly approaching their dip. You can save financial information about your company on external servers using online accounting software. There are no physical risks from your end there. You should know the frequency of data backups and confirm that it meets your demands. Many entrepreneurs are hesitant to keep their financial information on external servers. It is comparatively much safer since the security professionals take care of it. They employ the newest technologies to secure it.

  1. Bank reconciliation

Your accounting must include a bank reconciliation. Look for accounting software that can retrieve your bank statements. Create personal standards and bank regulations that automatically classify and match your imported bank transactions. By doing this, you'll be able to reconcile your finances and keep your company audit-ready rapidly.

  1. Tax compliant

One of the numerous advantages of having effective accounting software is being tax-ready. To assist you in adhering to the tax regulations set down by your government, your accounting software must be able to determine your tax liability, handle numerous tax rates, and generate tax reports.

  1. Automation

One of the best aspects of accounting software is automation because it allows you to complete more tasks faster. You may automate regular transactions, remind clients to make payments automatically, and automatically charge their credit cards for recurrent payments at the level of invoicing and billing. Another characteristic of accounting software automation is auto-scan, which makes it easy to collect information from receipts and convert it to transactions quickly. By selecting accounting software that automates time-consuming operations and minimises manual intervention, you may concentrate more on your core accounting.

  1. Mobile access

Cloud-based apps with mobile versions offer convenient and flexible access to your numbers. Even if you're not at your place of business, you can rapidly execute the complete accounting procedure. If your job necessitates a lot of travel, adopting accounting software with mobile versions can enable you to manage your finances just as simply on a mobile device as you can on a desktop.