Why Use Accounting Software?

Why Use Accounting Software?

Why Use Accounting Software?: Organizations, whether for business or non-profit, use money on an almost daily basis. Apart from spending on products and services, they also receive money from various sources. As transactions become more complex, tracking how funds are used becomes more challenging. To overcome this concern, organizations use accounting software.

Accounting software is an application used to keep track of accounting records and generate reports. It is used by both individuals and organizations to maintain clear and transparent records of money received and spent.

Among the reasons to use accounting software are:

Improves efficiency

Using accounting software helps you better focus on achieving your company’s business goals. You can keep track of all transactions and accounting records more quickly. You can easily find transactions without looking at individual workbooks.

If your company opts for cloud-based software, you can do your bookkeeping from anywhere in the world as long as you have an internet connection.

Automates accounting

Accounting software can help reduce manual work as such tasks can now be automated. You can use accounting software to add the totals so you don’t have to calculate any figures yourself. It can also be used to generate invoices or receipts for your customers and suppliers as well as other internal usage statements.

As it is automated, the risk of any error due to calculation is reduced to a great extent. Your income and expenses will be less likely to be misreported.

Protects you during the audit

Your accounting software can also help save you time when it comes to annual audits. All you have to do is open your software, take a print out of the requested relevant records and hand over to your auditors.

You will also find that with accounting software, the audit trail of every transaction is very clear. This results in fewer questions being asked by the auditor. This way, you and your employees can focus on your work instead of facing unnecessary questions from the auditor during the audit.

Gives you a running history of your business

Having accounting software to track your company data puts such data at your fingertips when you need it. All you have to do is click and type using the software’s search function and the accounting software will do the digging for you.

These past records are very useful when you want to evaluate your business performance over the years or use them to set a budget for your company. With an actual past record as a reference, better goals can be set for your employees to achieve.

In addition, you can also use the software to see if your company is spending within its budget. Just make sure all transactions in the software are up to date and you can generate reports to compare against your budget.

Makes tax filing easier

When it comes time to file your company’s taxes, you can easily find the information you need.

For example, if your company is a Singapore entity, you must file your company’s GST return to the Inland Revenue Authority of Singapore (IRAS) quarterly and e-file a corporate income tax return in November.

Instead of wandering everywhere to collect the required details, you can go to your accounting software, download the details and fill the tax return accordingly.