Accounting application: how to choose the right one?
As your business grows and your financial data evolves, the need for an effective accounting application is brought into sharp focus.
Managing accounts using spreadsheets can become confusing, time-consuming, and error-strewn. To adapt to your business’s increasingly complex financial data, you must think beyond antiquated accounting methods.
What is an accounting application?
An accounting application is a software program that has the power to automate traditionally laborious account management processes - from capturing and recording your business’s financial data in a central point of oversight and generating detailed reports to enabling the efficient and rapid processing of financial transactions.
Used by organisation’s of all sizes - from global corporations to small and medium enterprises - an accounting application is a valuable asset that leverages innovative technology to make your business more efficient from a financial perspective.
The application consists of a set of features and functions that are dedicated to the accounting process - including accounts receivable, accounts payable, payroll, general ledger and billing- making it a vital tool for assessing the financial health of your business, creating future budgets and meeting regulatory requirements.
How does it work?
The intuitive software separates accounting functions into modules, allowing users to benefit from comprehensive, real-time, on-demand analysis of your business’s financial status.
Since no two businesses are the same, functions within an accounting application can be customised to meet your specific needs. Furthermore, as your business grows and changes, the software can be a key driver of success. Therefore, the most effective applications provide exceptional flexibility and easily adapt to your dynamic business requirements as you evolve.
Traditionally this vital tool has been run on a locally managed network for use in-house. However, the emergence of new cloud-based accounting solutions that rely on the expertise of a third-party-managed infrastructure allows users to access accounting functions more conveniently from remote locations.
Why use an accounting app
An accounting application offers your business a number of compelling benefits:
- Saves time: an accounting application can save your business valuable time by managing time-consuming manual bookkeeping and accounting processes automatically. This affords you more time to focus on the administration and execution of your business strategies.
- Convenient accounting: modern accounting software is typically cloud-based, meaning you can connect from an internet-enabled device, such as a laptop or smartphone, from anywhere and at any time. The software is automatically updated because it’s always connected to the internet.
- Syncs financial data: A business’s data is commonly stored across multiple platforms, making data collection convoluted and time-consuming. An accounting application syncs data from all your online accounting tools via an application programme interface, so you can compile financial records quickly and easily.
- Improved accounting security: implementing cloud-based accounting application software will ensure your data is safely secured in the cloud under layers of high-end encryption algorithms - making your records easy to retrieve when you need them.
- Integrate with other business apps: you can integrate accounting application software with other apps like CRM solutions, reporting applications, and information management systems. This provides you with the flexibility to merge sales and business management functions with your accounting.
- Generates key financial reports: accounting application software contains built-in reports - such as your income statement, balance sheet, and cash flow statement - which are automatically updated. This provides you with key insights and facilitates informed decision making.
- Data accuracy: an accounting application eradicates the need to manually update your financial records. Instead, the innovative software automatically refreshes your business’s financial statements and reports to reflect any changes you make - and helps to keep your data error-free.
- Provides detailed insights: an accounting application provides you with a clear picture of your business’s financial posture, helping you to generate focused reports and make informed strategic decisions.
- Streamlines tax filing: standardised financial statements and accurate data simplifies the tax filing process and your ability to calculate available tax credits.
What should you look for in a good accounting application?
Select the right accounting application for your business by ensuring it’s intuitive, secure, reliable, easily integrable, and crucially: provides the required functionality to help your business achieve its specific goals.
For example, if your business is in search of an innovative expense management application that automates your processes, harnesses data, and saves time, you will need a solution that delivers three key components of modern expense management: accurate understanding of business expenses, simplified accounting duties for your employees, and compliance facilitated by artificial intelligence.
Get this right and your business will be able to achieve growth that’s driven by the digital revolution.
For more details on helping you to implement effective accounting application in your company , don’t hesitate to contact the Jenji team at email@example.com. We will be glad to assist you in setting up your project.