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Doing accounting for businesses is one of the complex & time-consuming processes. The financial activities become more difficult with the growth of the business. It requires the creation of more invoices, financial statements, modified journal entries, and more. In this day and age, smart businesses are shifting their focus to accounting applications to manage accounting operations. Cloud computing is the new trend in safe bookkeeping & accounting operations.
The tool automates most of the steps in the accounting cycle & thus allows the spending of time where it matters. The guest is highlighting the details related to accounting benefits for businesses & the top-rated accounting tools.
Technology is powering businesses to manage their accounts tightly and keep track of all expenses. By adapting to the relevant tools, businesses can now save time & money in financial operations. Today there is an app for every business need, from sending invoices to tracking of expenses, complex financial projections, and accurate report generation. All these features & many others are coupled with the accounting tool to take businesses to new horizons for financial efficiency!
Small businesses are greatly relying on technology to provide a level playing field with top enterprises. Entrepreneurs or owners with the right vision and mindset always look to minimize the automation tasks of their employees and make them contribute in a more innovative way. With a mobile accounting applications businesses can now automate much of the financial tasks and generate timely reminders for varied business activities. Select the right accounting tool with commanding features & also affordable for businesses.
Benefits of Using Suitable Accounting Applications for Businesses
The introduction of cloud computing has enhanced the options for businesses and they now host all the business applications in a safe cloud environment. A suitable accounting app is meant to deal with all kinds of financial needs within the business on a remote basis. The majority of the accounting applications are available with cloud storage options and the accounts can be accessed anytime. It is also helping accountants & bookkeepers to automate accounting transactions. Let us look into the top benefits of an accounting app for business use.
Ensures Remote Accounting Data Access
The accounting tools ensure remote access of the data anytime from their mobile handsets & other relevant devices. You only need an active internet connection to access the financial accounts remotely. It is different from the traditional accounting tools and all that’s needed is the device connected to the internet. With few clicks, it is possible to generate & view the financial reports. Most of the tools are available on the cloud and thus enable instant access to accounting details.
Enhances the Bookkeeping & Accounting Accuracy
It is possible to eliminate all kinds of typical accounting errors with suitable accounting software. The tool ensures the simple organizing of the accounting records each time. Accountants don’t have to devote the vital hours in calculations and rest assured of accurate numbers in the accounting books. For example – If the new journal entries don’t balance then it is instantly informed by the tool for any commitment. Businesses are preventing any kind of mishap or miscalculations in the accounting data.
Improves the Accounting Security
Businesses houses look for enhanced security of their accounting data and cloud-based accounting tools are the best options to store the data safely. Mostly, the accounting data are stored in remote data centers and are kept under strict surveillance. The data gets the coverage of high-end encryption and keeping it in the cloud is way safer than the office shelves. Businesses have no worries about data backup with the use of online accounting software.
Save Time with Automation
Traditionally, it required a lot of time to do the calculations and revise them multiple times! But with smart accounting tools, all the repetitive tasks can be automated by businesses for best results. Save the time of accountants and use it for some other meaningful purposes. Today, it is possible to integrate the bank accounts directly with the tool and automate the creation of journal entries. Not all accounting tools are having the same degree of accounting automation & thus selecting the appropriate one becomes vital.
Ensures Easy Collaboration
Earlier collaboration on all stakeholders on a single accounting platform was hard, but not with cloud accounting tools. The top benefit of modern-day accounting tools is real-time access to accounting & financial data. Collaborate easily on the available accounting platforms & work alongside multiple users online. The online accounting tool is providing different access levels to businesses & thus one can tailor the permissions based on the bookkeeping functions.
Improves Sustainability with Reduction of Paperwork
Dealing with paperwork is out of fashion and the businesses are adapting to environment-friendly options. All the financial data like statements, reports, and journals can be managed online. The sustainability of the businesses increases with proper maintenance of the financial records. Also, the tools are easily accessible with user-level permissions. Reduce time and wastage of papers by sending invoices directly from the accounting software to clients.
Popular accounting Tools for Businesses
It is possible to process financial transactions like invoicing, tax filings, cash flow analysis, accounts receivable & payable, balance sheet, & payroll using the right accounting task. An organization is able to get a glimpse of their performance financially with the generation of the right reports with the tool. The right kind of accounting software is ensuring the processing of financial transactions & also reduction in human errors. Details related to top-rated accounting tools below will help you understand their functionalities.
QuickBooks
It is one of the renowned accounting tools in the market with all the relevant accounting functionalities for businesses. QuickBooks is having different versions as per the needs of the industries and one can host the accounting tool with help of a reliable hosting provider. The different versions of the QuickBooks accounting tool include – QuickBooks Desktop, QuickBooks Enterprise, QuickBooks Pro, QuickBooks Online, and QuickBooks POS.
QuickBooks is a powerful reporting tool and helps the development of ideal financial statements for the business. The app is also strong for tax calculations and assists businesses in the creation of illustrative charts. A version like QuickBooks Online can be used for the easy creation of invoices, receipts, and prepares the right estimates.
FreshBooks
It is a mobile-friendly accounting tool that operates on the cloud! It is compared with QuickBooks for its awesome features and makes the life of accountants easier. The tool is considered the best option for small businesses and for some it is more intuitive than QuickBooks.
FreshBooks has the power of accurately customizing & automating the invoices. It has a time-tracking feature that allows the tracking of billable hours. Businesses can have unlimited simultaneous users on the tool and it is possible to categorize the expenses entered in order to have the details available at the tax time. FreshBooks accounting is a web-based tool that is running on window-based systems or Mac.
Bill.com
It is the kind of mobile application that can manage both the accounts receivable & payable functions for small businesses. Business houses like to use the app for strong accounts payable functions and it includes functions like customer invoices, reporting, cash flow management, automation, and more. It is possible to build digital invoices, pay online, and automate reminders with the help of Bill.com.
Small businesses in the United States are picking up the accounting tool for daily account operations and the cost of account management is very low. It is a web-based app that is available to businesses at any point in time! The tool is compatible with Windows & Mac operation systems.
Square
It is a top-rated POS (Point-of-Sale) app for businesses that accept credit cards & also has online stores. Set up the tool easily on the handsets and access the financial data on a remote basis. The accounting is helping in the management of inventory & keeps track of all records. The accounting software is crucial to do businesses online and easily set up an online store. The square app is providing free access and also provides free credit card readers.
Transactions are getting credited easily into the account within one or two days. Square accounting app is also compatible with other apps and thus makes the business financial very simple. It also supports inventory management, especially meant for retailers.
inDinero
It is a budgeting app that is compatible with different bookkeeping tools like FreshBooks. inDinero is the kind of software that pulls out the bank & credit card details from all the relevant banks. The app is placing the expenses in the right categories and helps to track the business spending. Businesses are able to develop their budget using the tool and generate reports that show how they’re doing.
inDinero is having a lot of functionalities for businesses other than budgeting. It helps in the preparation of financial reports like profit & loss statements, details on cash flow, and financial forecasting. It is a comprehensive app allowing businesses to get financial advice from an accounting officer.
Tips to Select the Best Accounting Tools
It is important to understand the use of accounting tools before making a purchase. Make sure that you look into the features & the price of the tool for hosting it safely on the cloud. There are different kinds of accounting tools in the market capable of smoothening the accounting operations and help prioritize the features required by the businesses. Take your business in a new direction of earning sustainable growth with the help of accounting software.
Determine if the accounting tool fits the business. Look for the reputed accounting tools in the industry and then shortlist the option based on business requirements. The software needs to fit the expectations of the business and ensure safe accounting.
Look into the business accounting features of the app. Make a list of accounting features needed by businesses and search for the appropriate app with all the relevant features. Consult the business accountants to ensure that the business is covering all that is needed for safe financing.
Take into account the support cost needed for safe accounting. Some of the tools provide fee-based support by mobile or phone and it is common for the cost of all small business accounting software. Businesses need to be able to maintain the software without incurring additional expenses.
Avoid or do not pay for unnecessary features. A small business needs fewer features for accounting and there is no point paying extra for the accounting functions. Businesses end up paying a lot higher than the required amount as they hire the entire accounting plan without customization. Try an accounting solution with flexible plans for hosting tools & software.
Consider the pricing of varied accounting tools & hosting providers. There are different accounting tools in the market with varied pricing rates and the hosting providers also charge differently as per the business. Make sure you select the kind of tool & hosting provider that is affordable for businesses.
The Bottom Line!
Accounting & bookkeeping in businesses are getting smarter with time & adapting to the right kind of technology will prove to be wonders. The right type of accounting tool results in cost reduction for businesses as they end up saving money on repetitive tasks. Invoicing & tax compliance have also become simpler with the help of the right type of accounting software. Select the cloud-based accounting software for installing access to the financial data & remote collaboration over files.
Businesses always need to look for ways to stay profitable in the market and the best way forward will be to look for options that assure instant accounting. Record the data automatically and also reduce the chances of human errors in accounting with the help of tools. Get the tool for your business that has a proven record of faster processing of accounting data.