Accounting software is a computer program that assists small business owners and accountants in the recording and reporting of the company’s financial transactions. Its primary modules generally include accounts payable, accounts receivable, invoicing, payroll, general ledger, and trial balance. With added cloud computing power, companies can now access their databases anytime and anywhere through the internet.
A cloud business accounting software helps not only the accounting department but the business as a whole. Its automated features support the smooth and speedy operations of the company. It also allows business owners to better analyze and manage the financials.
Here are some of the functionalities of online bookkeeping software.
Managing revenue transactions is a big challenge, especially in a growing company. To bill clients on time, the business needs a tool that can automate the invoicing process. A cloud accounting software has the ability to create digital invoices, send them over the customer’s email, make follow-ups, and accept digital payments.
Tracking of Expenses
Accounting software allows better tracking of expenses with its sorting, graphic, and comparative capabilities. With this tool, the business can compare its expense performance through the months or years and make better cost-saving strategies.
The company can connect its bank statements to the accounting software to review its cash transactions during the period. With this functionality, the company can complete its bank reconciliation activity within minutes. Bank reconciliation is important in detecting errors and fraud.
Reporting and Analysis
In running a business, the enterprise gathers numerous data that eventually becomes overwhelming. With an accounting system, businesses can better manage their data and use them for reporting and analysis. Additionally, the best bookkeeping app allows integration with other business tools like point-of-sale (POS) and customer relationship management (CRM) to increase business capabilities.
Accounting software allows multiple user access to the company’s books. When business owners finally decide to hire an accountant, it wouldn’t be a problem as the user admin has the power to share the system’s access to another user. They can give the accountants full or limited access depending on their assigned tasks.
Unlike traditional accounting systems, cloud software allows users to access the system even outside the office, as long as they are connected to the internet. It also provides flexibility because it can outsource its accounting function and simply grant the accountant access to the company account. Moreover, it is very suitable for e-commerce and work-from-home business situations.
Where to Find a Simple Yet Powerful Cloud Accounting Software
KIPPIN – from the phrase “Keeping it simple” – aims to make people’s lives easier by providing simple solutions to everyday tasks. We offer accounting, bookkeeping, invoicing, and tax services – all on the cloud. We also align our clients to top bookkeepers and accountants on our platform.