Areas where accounting software can make a difference
As your business expands, your financial data grows more complex. Handling business accounts in spreadsheets becomes confusing, time-consuming, and prone to errors. Growing business creates a need for a scalable accounting solution. To adapt to complex financial data, business owners have to think beyond spreadsheet accounting. The solution is accounting software.
Accounting software offers many features to optimize your business. From basic invoicing and billing, to tax calculations and project management, accounting software is an essential tool for your business’ financial data. It also helps manage clients, reconcile bank accounts, and generate insightful financial reports that help your business grow smoothly and continuously.
Let’s take a look at where accounting software helps you.
Invoicing and billing
Invoicing and billing are indispensable business functions and the main source of cash flowing into your business. Managing invoices on paper is tedious, time-consuming and error-prone. When you have recurring orders, it is not feasible to create physical invoices for each time your client buys from you. It is also difficult to track paper documents and remind customers of pending payments.
Accounting software addresses these issues effectively, and provides you with features that make invoicing easy. You can create recurring invoices instead of new ones every time for recurring transactions, and also set up automated reminders to ensure that clients remember about their payments. With an accounting app, you can track all your unpaid invoices, remind customers to make sure they pay on time, and prevent accidental missing or double payments.
The next step after invoicing your clients is getting paid. Collecting payments can be overwhelming if clients are not offered a proper system for making them. There is a two-part problem with payments: security and multiple currencies.
When clients pay you, they naturally look for a secure way to do so, and accounting software can give them that. You can integrate your accounting system with a number of online payment gateways that offer clients a swift and secure means of paying you. Payment gateways use two-factor authentication and 3D secure authentication, among many other protocols, to ensure that clients’ money is safe during transactions.
With clients around the globe, your business must be ready to handle all kinds of currencies. Online payment gateways connected to your accounting app can support multiple currencies and let you accept payments in your customers’ currency while still doing your accounting in your own currency. This removes discrepancies and extra calculations when it comes to foreign transactions.
Tracking expenses is vital for getting a grip on your cash flow. Accounting software helps you keep tabs on your expenses and categorize them to get a clear picture of where your money is going. Accounting apps make it easier to bill customers for the expenses you incur on their behalf. You can also use accounting software to upload expense receipts, scan them, and extract information from the scanned receipts automatically. This removes the need to store paper receipts and the risk of losing them.
Bank reconciliation is the core accounting feature of a business, and accounting software streamlines it. Connecting your bank account to accounting software directly lets you fetch statements from bank feeds automatically into your accounts and also secures your data against third-party threats. You can set up custom criteria and bank rules in your accounting software to categorize and match imported bank transactions automatically. Once your transactions are matched, you just need to verify and confirm them to reconcile pwts yoynre m vesportify asw hird-party thsactions.es y iify asw arty .es0ions.ng fey andbank rwirm them to uesey ap>ng fey s ande-acbicing-and-billing">Invoic-efA"unorence" />
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