Accounting Software and Its Benefits

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Tally Solutions | Nov-20-2019

What is Accounting Software?

An accounting software solution is one that cultivates under the same roof where all systems and applications are dedicated to manage and process financial data. Professional accountants and bookkeeping teams use these programs to govern accounts and automate systematic operations, while certain systems are also enabled to record accounting data, measure indicators and report on the company’s financial activity.

Types of Accounting Software

Generally, accounting software are classified based on the types of operations the business handles, and accordingly, they are classified under the following different categories

  • Billing/ Invoicing Software

    Accounting software in the operational field of invoicing/billing takes care of companies' basic billing activities. And they also serve the day-to-day tasks which a business undertakes including cheque writing and informing customers on their due payments etc.,
  • Payroll management system

    This category of accounting software India manages the companies' payroll registers, performs an array of different tasks, including calculating employees’ salaries, cutting deductions, depositing the salary directly into staff members’ bank accounts, producing tax forms and payslips and more.
  • ERP Systems

    This category of accounting software solution handles the operational portfolio that combines all systems used for product planning, material purchasing, inventory management and control, distribution, accounting, marketing, finance and Human Resource.

Why we use Accounting Software? (Benefits and Uses of Accounting Software)

Why Explanation
To simplify accounts -

The accounting software solutions influence the control in the hands of a non-accounting audience, as they are designed to give numbers meaning and to perform automated calculations.

With little to spend on training costs, these systems enable the business owners to complete all accounting operations and comply with legal standards with ease and simplicity.

To save Cost -

The accounting software solutions automate most of the core calculations and administrative procedures and thereby also take control of the revenue framework so that businesses will not be required to outsource finance management to an external expert.

On a parallel thought, they also reduce the costs related to printing and distribution of documents and store sensitive data in secure and monitored locations (say cloud computing)

The best example for distribution of documents to end-user via Accounting systems would be, sending of Account statements and Ledger copies via Gmail integrated into the accounting software module. We can see this in Tally ERP 9 solution which is a leading performer in providing ERP solutions.

Transparency - A good accountancy system is one that avoids costly and recurring human errors. In the business sentiment, calculating inaccurate totals or failing to report data in time can lead to a crisis, and that’s where automating calculations are most helpful which plays an important role in financial transparency audit.
Accurate forecasting -

It’s one of the major features of accounting software where, without a proper accounting system, detailing on the patterns and trends of financial performance would take ages to complete.

The accounting solution gives numbers a meaning, helping the management to understand where to save on the expenses or where to invest more.

The best accounting solution also helps in developing smart strategies and allocating resources to the right channel.

Productivity -

Accounting software in India is a complete package of digitized services which makes the most cumbersome, day-to-day tasks of companies look easier, and collects, organize, and analyze their outcomes.

Most importantly it makes smarter use of the available resources and thereby increase the efficiency of reporting standards by providing accurate data which in turn helps management in taking informed decision making.

Complying with tax laws -

Today almost every accounting software automatically complies with taxation laws as part of its internal structure, so the businesses can avoid penalties and other consequences on defaults.

The accounting systems of today are so comprehensive that they provide every detail, required to comply with taxation laws, for example, TDS compliance with Tally.ERP 9 is a very simple task as one just needs to activate it at the statutory information screen and Tally does the compliance part on its own.

Maintaining customer relationships -

It’s impossible to negate the fact that accounting software has little to do with customer relationship management.

The accounting systems nowadays (regardless of their main functions) work around effective billing and invoicing, and prevent all sorts of delays and miscommunication and thus, make companies' performance appear more professional and credible.

With Accounting systems, we can convey any piece of information which is important or related to the product. We can wish the clients on their birthdays with the data stored in the systems. We can deliver Christmas mails or wish the client on the occasion of any festival with the help of email IDs and phone numbers recorded in the accounting system.

We can send reminders of outstanding dues, and on receipt of the same, we can send the acknowledgement note to the customers or clients. All these go in building a strong customer relationship and makes the business viable for the long run.

   
Data security -

Data related to the financial activity of a business is the most valuable information and it must be prevented from falling into the wrong hands.

Here’s what the accounting systems do for their users, they prevent accounting from being jeopardized by theft by providing passwords and administration IDs and setting up as who can view what.

Conclusion

Tally as an accounting cum ERP system is focused on delivering total workflow automation with the aim to provide relief to accountants and finances experts by taking off the huge responsibilities from their shoulders. And GST could be given a reference here where Tally ERP 9 not just made the journey on GST pathways a cakewalk by providing return filing module but it also updated its software solution as and when changes were brought in GST law. The best requirement could be updating of  E Way Bill preparation module into the Tally’s latest software module.

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