Accounting Software and Analysis of its features

Tally Solutions |Updated on: December 9, 2022

What is Accounting Software?
What does accounting software do? or what are the features of accounting software?
Conclusion

What is Accounting Software?

An accounting software solution is one that cultivates under the same roof all systems and applications dedicated to managing and processing 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.

What does accounting software do? or what are the features of accounting software?

A question arises as how does the accounting software work exactly and what features does it offer? There are many contrasting ways in which accounting software can optimize your business, depending on its main features and objectives. From a simple task of invoicing to complex tax reporting, accounting systems come with all sorts of extras that are not even feasible without an appropriate system.

So here are some of the features of accounting software

Core Accounting

Accounting is the bread of each system in this category and the one the businesses should be looking for first when choosing a reliable solution. What we mean by ‘accounting’ here is a general ledger, fixed assets, accounts payable & receivable, and bank reconciliation.

And off course these are the basic and most important ones, while advanced systems have much more to offer to their users.

Generating Invoice/Billing

We can agree that there are accounting systems which are exclusively used for billing and invoicing, but most of them still treat the same as an integral module of any finance operation. Maybe it is a value addition to some businesses but most businesses today prefer a compact ERP system which not only just prepares invoices but does a complete routine of tasks related to accounts and finance and which also does meet the tax compliances just like TallyPrime software.

Preparing budgets and forecasting the results

This is a bundled feature that most accounting software’s offers with it’s prime line. This category here allows to calculate and interpret finance performance for the current year and also helps to estimate the budget of the projected year using the data trend recorded from the last year. Using this feature, companies can prepare their estimates and set up real and optimistic sales targets.

Managing payrolls

Here the accounting software will be able to calculate and process the payments to be made to employees, it will also prepare and print their cheques without delays, and be respond ready to all legal and tax commitments without errors. This will act as reminders for businesses of their responsibility to these financial obligations.

Asset management

Either as a separate tool or an inclusive module, this feature of accounting software “fixed asset management” helps manage financial data much more accurately. The category here combines features such as maintaining history of audits, cost records, calculating depreciation, allocating resource to departments etc.,

Inventory management

It’s a packed feature that accounting systems offer for performing stock control options based on the data provided by it. It is the factory where businesses will find all the necessary tools to give their business a higher shelf life product line. It also means that they will be able to control the availability and movement of products and avoid all sorts of delivery issues such as overstocking or understocking.

Reporting canvas

Today accountants undertake vivid responsibilities in an organisation for the role play of taking care of corporate data and information. So as a professional requires tools to perform his duties, accounting software solutions offer that hand which accountants need to perform his duties.

Today the accounting solutions offer robust reporting and analytics tools which helps greatly bin decision making over matters concerned with finance and figures. It provides accountants and finance managers with crucial financial insights and accurate financial information, all of which they can report to management for its guidance.

Tax management

Tax regulations change over time and one fine example is the introduction of Goods and Service Taxes Act in India. Accounting systems can help you manage all those compliance requirements with automatic calculations on tax for sales (GST) and payments as well as on withholdings for employee payroll (ESI, EPF etc.,) and other direct tax taxation laws such as Tax deducted at Source (TDS).

As the accounting software keeps you updated and informed through automatic reminders and sorting everything, the risks of being penalized for late payments are also minimized if not eliminated.

Openness to integration

Accounting systems offer flexibility to integrate with third party business software’s and productivity apps and services such as payment gateways, sales software, CRMs, business intelligence systems, project management tools, and many others.

This ability of accounting systems translates the businesses by being able to work on important events concerning the company’s financials. This also opens the doors for ERP systems to work hand to hand with accounting software systems.

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 TallyPrime 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 into the GST law the best recitement could be updation of E Way Bill prep module into the Tally s latest software module.