fbpx

Blog

What Should You Look For In Accounting Software?

What You Look Accounting Software

Accounting software is one of the best tools to help make accounting procedures sustainable, easy, and organised by analysing financial trends and the money flow in your company or business. 

As such, accounting software must have varied and comprehensive features such as MYOB Advanced, to help you easily achieve your accounting requirements and goals. Listed below are some of the basic features that you can expect to find with just about any accounting software.

Cloud-Based

Before we look at the many features you should take into consideration when it comes to purchasing your accounting software, the most important feature of all in 2020 is to make sure it is cloud-based.

There are a number of benefits when it comes to using cloud-based accounting software including the following:

1). Real-time Data – You have the convenience of connecting all your business bank accounts together and can also track things like sales, inventory, and expenses in real-time. This provides you with more accuracy in which to make quick decisions based on the instant availability of the data.

2). Work From Anywhere, Anytime – With COVID-19 forcing many people to work from home or other remote locations, cloud-based accounting software allows you to access financial data and work from anywhere, at any time.

3). GST Made Simple – Most accounting software is GST compliant which means the GST can be applied to all your invoices which makes it so much easier when it comes to filing your returns. You are also able to set up reminders either monthly, quarterly or annually so you don’t forget important lodgement dates.

4). Automation – You can save time by setting up workflows so that suppliers can be automatically paid when their invoice is due, or when it comes to sending invoices to your own customers.

5). No Installation Required – As cloud-based software is actually hosted online, you do away with having to install the system onto computers and servers. This saves time and money especially as you don’t have to employ an IT department to keep things ticking over.

6). Easy Collaboration – Your whole team can simply log on to the cloud and access whatever parts of the program they need. The best part is that you have access control. This means if you have an employee processing the payroll, for example, you can restrict their access to that function only without giving them access to sensitive bank account information.

7). Tech Support – As mentioned earlier, you can avoid having to employ a whole IT department as most cloud-based accounting software will come with tech support.

Now let’s take a closer look at some of the more important functions to consider with your accounting software.

Accounts Payable

This feature is particularly important to track the outflow of your company’s funds. Listed below are some features associated with this:

1). Invoice Processing – Accounting software allows you to print invoices and to remember basic information about your customers such as their names, account numbers, and addresses.

2). Payment Processing – With payment processing, clients will be able to pay necessary invoices online to avoid the time-consuming process of staff members having to make bank deposits or process cheques. It also increases security for payments and makes processing much faster.

3). Vendors Records Management – This customisable feature is important because it helps you know your suppliers. You can create your own vendor fields and also clone records.

4). Suspicious Payment Alerts – With this feature, you will be able to easily identify possibilities for suspicious payment trends more accurately. 

Accounts Receivable and Billing

This feature is particularly important to track the outflow of your company’s funds. Listed below are some features associated with this:

1). Purchase Orders – This feature operates in different ways, from being able to create simple purchases orders to following quotes from purchase to payment.

2). Vendor Credit Memos – By tracking credits from vendors (rewards or returns), accounting software can help keep costs down. 

3). Automatic Payment – This feature allows you to automate all of your payment processes from payment scheduling to printing out cheques.

4). Progress Billing – Accounting software can help make progress billing more efficient by using AR features to help time the issuing of invoices and track payments.

5). Sales Attributions – Sales attributions features allow you to generate performance metrics from location, agent, and department sales attribution. This can also help create incentive compensation for staff. 

Budgeting and Forecasting

1). Sales Forecast – Sales forecasts help you to predict your future sales revenues based on your previous performances, past weighted trends, patterns, and market changes.

2). Rolling Budgets – This feature allows you to lengthen the scope of your budget visibility by adding or creating a new budgeting period at the end of another finished period. 

3). Versioning and Approvals – This collaborative feature allows you to generate suitable budgets for individuals by allowing collaboration, approvals, and versioning. 

4). Actual Variance Reporting – The actual variance reporting connects your budgeting tools together with your general ledger to help give you a clear estimation of the actuality of a particular situation. 

Payroll

Payrolls are another important accounting element that every accounting software must possess. Here are some important features that you may find when it comes to payrolls in accounting software

1). Variable Wage Schedules – With this feature, you can easily calculate the salaries of your employees no matter what their salary schedule is (monthly, bi-weekly, etc.). It is also capable of accounting for compensation such as commissions, profit sharing, and bonuses along with benefits such as retirement plans or health insurance. 

2). Direct Deposit – Nowadays, people often prefer to receive their paycheques deposited into their bank accounts. As such, this feature is important because it allows you to schedule direct deposit payments.

3). Automatic tax calculations – This feature is very flexible because it can calculate basic deductions to sophisticated tax tables. 

General Ledger & Financial Reporting

1). Profit and Loss – This feature allows you to assess how you performed profit-wise during a specific period. You are able to visualise this with a display.

2). Balance Sheet – This is another basic feature that helps you gauge the condition of the financial situation in your business.

3). Departmental Tracking – This feature maximises tracking organisation by helping you assess the revenues and expenses according to each department, location, or cost centre.

4). Inter-company Transfers – Accounting software can also track transactions between companies and businesses by organising all records of these transactions.

Final Thoughts

Accounting is a multifaceted field that requires careful and precise execution. With accounting software, you will be able to do exactly that with both heightened efficiency and maximum performance. 

As such, having accounting software is definitely an investment. Not only will it save you a lot of time by substituting manual labour with automated processes, but you will be able to account for a plethora of scenarios and possibilities. 

This list only presents the surface of what accounting software has to offer you; however, it is undeniable that having an accounting software will help you and your business succeed in the long term future.

If you are looking for accounting software solutions anywhere across Australia, then please get in touch with us at Stratus Smart Software Solutions.

We are accredited and experienced MYOB Australia/NZ Enterprise Partners with a dedicated team of business, accounting and IT Consultants who are passionate about helping Australian businesses grow.

Call us today on 1300 499 000 or fill out our inquiry form and we will get back to you within 24 hours.

CONNECT WITH OUR EXPERTS

Get in touch