What is Accounting?
Accounting is a complete record of all the financial transactions of the business. Most business owners concentrate on developing their business, therefore, letting the accounting functions slide. This is where an accounting software helps you keep accurate financial records. It is time and cost saving solution for small businesses.
Online accounting software like ZapInventory, allows you to record not only expenses and incomes but also helps in taxes, financial data storage and the state of the finances.
Here’s how accounting software will help you improve your business:
1. Accounting software make it easy to track and record expenses and incomes:
Every business must document their income and expenses to arrive at the profit or loss at the end of the financial year. However, manually keeping records can often be tiresome and can also lead to inaccuracies in the recording. When using ZapInventory or any other accounting software, all the business owner needs to do is enter the details of the transaction to the system.
2. Summarizes and automates:
Accounting software automates redundant tasks like book-keeping, billing, and other tasks. They also come with checks for inventory and invoicing functions. Once the customer information is stored in the database, the invoices are sent out like clockwork. In ZapInventory, you can also track the special offers you have offered to your existing and new customers and it also helps you know whether there is a potential to make any revenue from them.
3. Cash flow monitoring:
The usual process of recording cash flow is through excel sheets, invoices, and other bills. Examining the paperwork can take a lot of time and disrupt the business activities. Accounting software helps in monitoring the cash flow and informs you about the cash balance at a glance. It tracks bills and aids in creating financial forecasts. You can also generate financial statements of Balance Sheet, Profit, and Loss.
4. Helps with the taxes:
Accounting is essential for computing taxes. Many accounting software like ZapInventory come with inbuilt functions of specifying the amount of tax chargeable for the service or materials. There are also other features like tax calculations, the inclusion of multiple tax rates used globally, and the tax reporting required by different tax departments.
5. Stores data securely:
Paper-based accounting exposes the business to the risk of getting their financial data stolen. However, the software comes with high security and encryption that prevents unauthorized access to the financial data. The details of the customer’s billing information and the business financial information like credit cards, bank details are also highly encrypted and secured.
6. Trends and patterns:
Every business is the recipient of bad debts. The accounting software helps you in spotting these bad debts early in the game. It can help you devise or forecast a trend or pattern that points the late-paying clients, the clients that are late or have defaulted on payments. It gives a history of the customer’s payment pattern and spots the area of trouble.
7. Time and money saved:
Accounting software saves time and money as it comes with easy to use dashboards, automated tasks, high-level security, and easy to use User Interface which makes the job of maintaining accounts and records easier for small-time business owners or for employers on a budget. Much online accounting software like ZapInventory also offer a free trial period that can be very beneficial for businesses on a tight budget.
8. Cloud-based accounting:
Nowadays, every business has an online presence, and many accounting software provides cloud-based service. Because this makes it easier for the business owners to access their company’s financials anywhere and at any time. It also can be integrated with mobile apps that make it easier for the employer and the employees to stay updated with every transaction of the business. The software also allows third-party app integrations for ease of payment.
So, Having accounting software is very essential and beneficial for businesses as it allows them to concentrate on the functioning of the business. Accounting software makes it easier to track the company’s financial graph and compile reports that outline the performance of the business. So Investing in accounting software like ZapInventory today and start growing your business.
Related: 4 Main Differences Between ERP And Accounting Software