Why Accounting Software is Must for Businesses

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Walk into an accountant’s office today with financial records that have been manually produced and printed receipts, and the response you receive will be similar to that of a deer in a car’s headlights. No matter how fine one’s penmanship or meticulous the record keeping, most accountants today would be helpless to assist as the vast majority of their consulting work is based on reviews of reports generated by accounting software.

Accounting software records every financial transaction by the company and is instrumental in strategies to reduce costs by doing work in-house that was formerly outsourced to a CPA or other accounting professional.

How to Choose Accounting Software?

The question any business should be asking today is, “What types of accounting software do we need?” There should be no question that accounting software is necessary. For a start-up company or mid-sized business, there are several fairly reasonably priced alternatives. Microsoft has an excellent solution for small business accounting bundled with its Microsoft Office Small Business Management Edition 2006 that features the Excel spreadsheet application along with Microsoft Office Small Business Accounting.

The solution is easy to use and features a large user community and around-the-clock tech support to ensure customers have the support needed to be successful. The Microsoft accounting software provides tools and benefits one would expect to see in more expensive applications targeting for large businesses; yet, it comes in an affordable and user-friendly package.

Benefits of Accounting Software

Modern accounting software handles all of basic bookkeeping duties that a company executes on a daily basis. Most competent tax professionals are well versed in the use of popular accounting software to generate all year-end tax documents quickly. Many of the applications allow records to be emailed to an accountant so that the company never has to leave the office or lick a stamp in order to fill all financial reports, which saves time and money.

The tax professional will still oversee preparation of the tax returns and consolidated bank statements, but with accounting software performing all data entry, the tasks are easier. Many small firms engage a CPA or tax professional who takes responsibility of the accounting tasks on a monthly basis and ensures that all generally accepted accounting principles are followed.

With accounting software executing many of the basic bookkeeping and accounting functions, many businesses now have the resources to perform other tasks in house that were once outsourced. The result is significant savings in accountant fees, more accurate reports, and real-time accounting information at hand when needed.

The initial requirement of a company transitioning to accounting software is to train an existing employee to use the system or hire someone with that expertise already. Because accounting software is subject to the same principle that applies to manual systems – garbage in, garbage out – the company should have a reliable person to accurately input invoices, employee hours, and other financial data. If the company chooses to train an employee, have his or her work reviewed by an accounting professional on a monthly or quarterly basis.

Accounting software is a critical capability for businesses today, no matter how large or small the company. The solution greatly reduces the time required to execute and report financial transaction, and eliminates the need for assistance from a tax professional, which saves the company time and money.

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