Accounting processes have evolved with time, not only the concepts but the methodologies too.
But to practice these methodologies with traditional accounting methodologies, is a laid back approach. The competition is growing with the technology development and keeping up with that takes a smart digital approach – Accounting software.
The companies can acquire these softwares to manage accounting tasks free of errors, in a few minutes time. However, the choice is not that simple. It has to be an accounting software which fits the needs of the business, at the same time, helps scaling the business without any accounting hindrances.
Therefore, to decide the best accounting software for the respective businesses, the decision makers should know the features available in the market and how those features will amplify their daily accounting operations.
If you’re thinking the accounting software only focuses on accounting management, then you’re unaware. Accounting software technology has become more of a complete business management solution which comes with accounting as a bigger benefit.
Let’s know more about the top features to look for in accounting software.
1. Automatic Core Accounting Processes
The core accounting processes consist of tasks like accounts receivables, accounts payables, and the company’s accounts ledger. These fundamental records are the most crucial part of the accounting department.
With accounting software, you don’t need to worry about the storage space or maintenance of these records. The software helps you store all of the accounts books on cloud (digital storage space) without any rent.
The accounting software calculates all the core accounting numbers when the data is fed, with precision and without any fear of human error. It also presents the records during any internal or external audits through its precise transaction detecting methods. With the help of AI, the accounting software automates every human accounting effort in an easy and secure manner.
2. Effective Financial Reporting
Accounting software also helps the businesses track their financial numbers through its professional reporting tools.
The financial reporting feature allows the businesses to monitor and visualize the key performance indicators (KPIs), which include balance sheets, profit and loss statements, sales reports, etc. With the help of AI, accounting software can provide in-depth financial insights which will help the decision makers to study the trends and make prudent financial decisions.
3. Easy Bank Reconciliation
The bank reconciliation process is basically matching the bank statements with the accounts ledger entries. In a simplified language it guarantees the correctness of a company’s financial data.
The accounting software eases this process by importing electronic bank statements automatically on every transaction instead of hectic manual labor. It also alerts the team with timely bank feeds which keeps the reconciliation process transparent and in-check.
4. Automatic Invoicing And Billing
With accounting software, the business’s invoicing and billing process also gets easy. The software generates automated invoices and sends them to the respective clients with payment link options.
This system fastens the invoicing and payment process which otherwise takes a lot of effort on mails and time on calls to wait for the payment. Also, it goes a step further than just invoicing and provides additional sale features like recurring transaction options – contract and subscription services, which delivers a unique customer experience.
5. Financial Forecasting And Budgeting
With accounting software, the businesses can plan their budgets and forecast financial numbers easily.
The accounting software takes the help of in-built AI which uses historical data to plot trends and likely outcomes for KPIs like expenses, savings, revenue, and cash flow. This builds the confidence of investors and businesses to grow in the right direction.
6. Multi-Currency Support
This feature should not be missed at all. The multi-currency support feature enables the businesses to accept payment in multiple currencies with an automatic conversion system. This allows the businesses to send invoices and produce quotes in the client-friendly format legal tender.
The most fascinating thing about this feature is its automatic exchange rates update system, which removes the fear of calculations as the currency exchange rates keep fluctuating frequently. This allows the businesses to offer seamless international transactions service to their global clients with exposure to international markets.
The features in an accounting software are immense and will keep on evolving with the changing business needs. The businesses should be aware of them and keep themselves updated, so that they can figure out easily which features will best suit their business’s accounting practices.