Choosing the Right Software for Your Vertical
Accounting software provides a wealth of benefits to savvy business owners in virtually any industry. With the right software, accounts stay current, records are more accurate, and bookkeeping takes far less time. Even a novice, with no prior accountancy knowledge, can stay on top of revenues earned, monies owed, accounts due, and profits realised. Taxes, VAT and other accrued expenses can be tracked accurately for easier and less time-consuming calculations each quarter. Expenses such as wages, utilities and mortgages can also be monitored effortlessly.
With some accounting software packages, tasks such as payroll and appropriate holiday pay accrued are automatically calculated. By incorporating time sheet functions into the accounting software, employee records for time worked are automatically entered and recorded, saving on expensive third- party hardware or services. For service businesses that bill by the hour, time spent on client work can also be tracked and fed directly into accounting software for later invoicing.
Customising accounting software to meet specific business needs or industries is as easy as answering a few simple questions. General accountancy software provides standard bookkeeping, financial statements, and account reconciliations. Specialised versions of various accounting software packages may include features such as point of sale capabilities or inventory management add-ons.
Depending on the specific software purchased, users may be able to add on components to expand general accounting software to fit a specific type of business. Every business is different, but for most businesses, the tasks involved with accountancy are identical. A shoe shop will need to track inventory, record customer transactions, and calculate VAT.
Likewise, a flower shop will need to track the same information, just in different monetary values. Construction companies, medical offices, and not for profit organisations may not need to track inventory, but will need to record services rendered, create invoices, and tract revenues generated.
A professional accounting software package typically asks pointed questions when setting up a new business. This helps determine what accounts to create, what forms to access, and recommendations for add-on features or other installation instructions. For example, consider the following scenarios. Joe owns a construction company. Jane owns a manufacturing business with 100 employees. Mary owns a flower shop. Each business purchases the same accounting software for their business.
Upon installing the software, each answers a set up questionnaire about the type of business they own or industry they serve. Joe and Jane both need invoicing capabilities to help track outstanding accounts. Jane needs to track raw materials, vendor invoices, and cost of goods sold. Mary, however, needs inventory tracking and point of sale capabilities. After answering the startup questionnaire, the software installs certain invoice templates, accounts receivable and accounts payable for Joe and Jane.
Jane receives recommendations for downloading a few extra account templates, while the software also takes her through the steps to add payroll, time sheets, and raw material inventory tracking. Alternatively, the software recommends Mary download some additional features or purchase add-on hardware to scan inventory labels and record shipping information. Each of these tasks are automatic, based on information supplied by each business owner.
Set-up, even for a novice, is easy, done once, and provides a wealth of information to help each business owner customise the accounting software to best meet each owner’s needs. In addition to accountancy software providing customisable features, many software packages also integrate with existing tools, such as online banking, cheque printing, and third-party payroll services.
In some cases, accounting software packages allow for encrypted file creation so that owners can share records with an accountancy professional for tax filing and government reporting requirements. Some vendors who use compatible software can simply email account reports and invoices to automatically be recorded into the business owner’s software.
Bank statements can be downloaded, with transactions reconciled automatically in just a few minutes. The time saved, accuracy rates improved, and customisable features mean that any business can benefit from a good accounting software package, no matter the business size, specific industry, or accounting method currently used.