Features of Computerised Accounting Software
What is Computerised Accounting Software?
Computerised accounting software is an invaluable tool for any business. It can make the process of managing your finances easier and more secure, but it’s important to know what features you need before purchasing a product. There are many features available in computerised accounting packages, and this article outlines some of the most useful features that might be a good fit for your business.
The features of computerised accounting software vary depending on the product. Still, most programs will offer similar features such as: invoicing, tracking expenses, creating budgets and financial reports, and online banking integration. It’s essential to find a package that includes all the features you need to manage your finances effectively.
How does a Computerised Accounting System make Bookkeeping Easier?
Computerised accounting systems make bookkeeping easier by automating many of the tasks that are involved in the process. It can help save time and reduce the chances of mistakes. The software can also help you stay on top of your finances by providing detailed reports on your business’s performance. The business can use the information to make informed decisions about allocating its resources.
They allow you to enter all the accounting transactions easier, and some link with products that will scan and import the bills.
What are the Advantages of Computerised Accounting Software?
There are many benefits to using a computerised system, including:
Reduced paperwork and improved accuracy: Automating tasks can help reduce the amount of paper used in the bookkeeping process and improve the accuracy of financial reporting.
– Improved security: They can offer improved security features, such as password protection and data encryption, to help protect your financial information.
– Flexibility: Many computerised accounting packages can be customised to fit the specific needs of your business. It allows you to add or remove features as your business grows and changes.
– Reduced costs: Using a computerised accounting system can help to reduce the costs associated with traditional bookkeeping methods, such as hiring a bookkeeper.
Which Accounting Software is Right for My Business?
There are many different software programs available on the market, so it’s important to choose the right one for your business. Consider your specific needs and budget when making a decision. Many free and low-cost options are available, so you don’t need to break the bank to get started.
No matter what size or type of business you have, accounting software can save you time and money. Be sure to choose a package that includes all the features you need to manage your finances effectively.
When choosing the best software it is always worth taking out a free trial to see if it has the features needed. Free trials are available with both FreshBooks and QuickBooks.
Are there any drawbacks to using computerised accounting software over a manual accounting system?
A Computerised accounting system has some drawbacks compared to the traditional manual accounting system. One of the main disadvantages is that it can be expensive to purchase and maintain a software package. Additionally, they can be challenging to learn and use, so a learning curve is involved in making the switch. However, the benefits of using computer software typically outweigh the drawbacks.
Some of the options for a manual accounting system are :
- A simple pencil and paper.
- Excel spreadsheets – at Business Accounting Basics, we have created many useful Excel bookkeeping templates, including the cash book, profit and loss, balance sheet, petty cash and depreciation.
- Ledger Books – purchased from stationery stores or online suppliers.
Cloud-Based Accounting System
Cloud-based accounting has made it easier for businesses to keep track of their finances. This type of system stores all the data on a remote server. Cloud-based accounting often offers invoicing, expense tracking, and financial reporting features. This can make it easier for businesses to manage their finances and make informed decisions about allocating their resources.
The main advantage of using a cloud-based accounting system is that businesses can access their financial data anywhere. This is especially beneficial for companies with multiple offices or employees who work remotely. Additionally, cloud-based accounting systems are typically less expensive than traditional software packages.
How to Choose the best Accounting Information System for your Business
When looking into the best accounting software, it is worth spending the time deciding the features that the business needs both now and in the future, especially if you are planning to expand.
Below are some of the features to consider:
Easy to use and navigate
When looking for an accounting system, it is essential to find a package that is easy to use and navigate. It will save you time and frustration in the long run or expensive training costs. There are many different software options available, so take the time to research and compare different packages until you find one that fits your needs.
Automatic data entry features
One of the features that many computerised accounting software packages offer is automatic data entry features. It means that the software can automatically import financial data from bank accounts and credit cards. This can save businesses time and money, as they will not need to spend as much time on repetitive accounting jobs and reduce clerical errors.
Inventory
If your business holds stock, a sound inventory system is essential. QuickBooks is a popular choice for businesses that need to track their inventory. This software can help you keep track of what items are in stock, how much inventory you have on hand, and the stock’s value. This information can be vital in making informed decisions about your business.
Financial Statements and Customisable reports
A computerised accounting system makes it easy to create financial statements and reports. Most software packages offer a variety of templates that businesses can use to create custom reports.
This allows businesses to track their finances in a way that is meaningful to them. Additionally, generating custom reports will enable businesses to make informed decisions about allocating their resources.
Integrated features
Another thing to consider when looking for computerised accounting software is the integrated features with the software. For example, some software packages offer inventory management and customer relationship management features.
Ability to track spending and budgeting
One of the benefits of using a computerised accounting system is tracking spending and budgeting. This can help businesses keep track of their expenses and stay within their budget.
Many software packages offer features that allow businesses to track spending by category, department or vendor. It can help businesses to identify areas where they can save money.
Generate invoices and quotes
One key function for small businesses is to generate invoices and or quotes.
Many software packages offer features that allow businesses to generate quotes and invoices quickly and easily with built-in templates. Branding your invoices with the logo and colours are an advantage. Look at the options available to see if they have a built-in template.
Along with sending invoices, most will allow for automatic reminders, saving time and helping to get payment from customers quicker.
Tax filing features
Making Tax Digital is the government’s plan to move UK tax reporting and payment entirely online. The idea is that all taxpayers will use digital tax accounts to report and pay their taxes rather than filing paper returns. The government has been working on Making Tax Digital for several years; VAT is already rolled out.
The government is also looking to roll out self-assessment tax and corporation tax. Ensure that the software is making tax digital-ready.
Security
It is important to find a secure package. This means that the software will protect your accounting data from hackers and other online threats.
It is also important to find a package that offers password protection features. This will ensure that only authorised users can access your financial data. Additional login features are now available to make the accounts even more secure, including one-time passcodes.
Payroll
If you employ staff it is worth looking at a provider that includes a payroll service. It will make it much easier to integrate the payroll figures into the accounts. The other option is to use an external payroll service.
Accounting Principles
It is important to find one that complies with the generally accepted accounting principles when looking for an accounting system. Accounting principles are accountants’ fundamental guidelines when recording and reporting financial information. Some of the most common accounting principles include the accrual and matching principles.
Most software complies, but it is worth ensuring that your accountant thinks the software is suitable.
Number of Users
It is important to consider the number of users the software will accommodate. Most software packages allow for multiple users, which is beneficial for businesses with multiple employees who need access to financial transactions.
Some providers allow unlimited users, while others are restricted or charge per user.
Mobile Application
It is essential to find one that offers a mobile application. A mobile application allows users to access financial data from their smartphone or tablet. This is beneficial for businesses that need to access financial data while on the go.
Most mobile applications offer features such as generating invoices and quotes, tracking spending and budgeting, and viewing financial reports.
Pricing
The price of a computerised accounting system can vary depending on the software’s features and functionality. It is important to find a package that is within your budget.
Some providers offer subscription-based pricing that allows businesses to pay a monthly or annual fee. Other providers offer one-time pricing, which requires a business to pay for the software upfront.
Software Comparison
Below is a software comparison table, to help make it easier to choose the best option.
Best Small Business
| From £16 per month |
| Free Trial |
| Integration with apps |
| 90% Discount – 6 Months |
For Business Owners
| From £15 per month |
| Free Trial |
| Pricing by Client Number |
| 50% Discount – 3 Months |
Best Free
| From £12 per month |
| 1,000 invoices PA Free |
| Integrate with Zoho Apps |
| No Discount |
Why you Should Switch to Computerised Accounting System
There are many reasons why businesses should switch to computerised accounting systems. The most obvious reason is that they are more efficient and provide many features to save time and money.
Computerised systems are more efficient because they automate many tasks that would otherwise need to complete manually. For example, the software can automatically generate recurring invoices and send reminders to customers. This can free up time to focus on more important tasks.
Another reason to switch to a computerised system is that it can save businesses money. For example, the software can help companies to track spending and budget more effectively. This can help businesses avoid overspending and reduce the need for external financial assistance.
Ultimately, computerised systems offer several features and benefits that can be highly advantageous for businesses of all sizes. If you are still using manual accounting methods, then now is the time to switch to a computerised system.
Conclusion on Features of Computerised Accounting Software
Accounting software features are important to consider when choosing a new accounting system. You will want features that align with your business needs and offer features that can save you time and money. Consider how many users the package accommodates and mobile application features for those who need access to financial data on the go.
It’s also worth looking at the pricing and comparing features to find the best value for your money. When making the switch, be sure to consider all of these factors.
