OdooGap Blog / Do you know the importance of Accounting software?

Do you know the importance of Accounting software?


Large or small, businesses must have an accounting system to help them


Is accounting softwareuseful at all?

Accounting software allows you to manage your business’s financials. The scope of this kind of software is very wide. It can help you with simple bookkeeping. Or with entire financial transactions of large businesses.

Companies reduce bookkeeping mistakes and use their accounting department resources efficiently. A lot of companies are introducing accounting software to handle their finances. Businesses introduce accounting systems to help them with their bookkeeping and accounting tasks.

It’s useful for your business, regardless of size:

Reduce costs

Automates tasks

Helps you with taxes

Oversees cash flow

Creates digital invoices

Accounting software eliminates redundant data entry. You can stop filling the same information over and over again in quotes, work orders and invoices. Balancing books is hard and not everyone has the skill to do it. Not to mention, the mistakes and errors that are even harder to solve.

As a business grows, so does what you have to track. Invoices, inventories, salaries...you’re bound to overlook some aspects.

And your time will be wasted tracking all these when you could be focusing on more important tasks.

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The growing need for accounting systems

The market size of business accounting software has a CAGR (compound annual growth rate) of over 6%.It’ll grow from $3.06 billion (2016) up to $4.10 billion by 2021.

It’s a growing trend for businesses and customers to invest in an accounting system.41% of businesses are using accounting software. And 25% of customers insist on having it.

As your competition is automating and streamlining their accounting processes, you should too. Don’t let them have the upper-hand.

Wouldn’t it be easier to have all your information in one place? As opposed to hundreds of spreadsheets, receipts, and expenses all over the place?


Increase record accuracy



Reduces or removes human mistakes

Managing your finances by hand involves a lot of manual mathematical calculations. Any mistakes can have a big impact on the end balance.

Manual calculations are prone to mistakes. With a lot of information that you have to sort through, errors are bound to happen. And, with this in mind, you’ll spend even more time double checking everything.

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The bigger the business, the more to juggle.

An accounting system will take care of most of that on its own.

Automation and tracking will help you get paid faster.

Bank reconciliation won’t let you miss any deductions.

Software doesn't make mistakes. But, it’s still liable to human errors like wrong data entries, for example.


It’s fast

Businesses process their accounts a lot faster with software than by hand

Computers can process data a lot faster than us.Software can have automated processes to boost efficiency as well. Instead of doing thing by hand, you can configure the software to do tasks on its own. Automation is your friend and ally.

With software, you only have to enter information one time. Anything else related to it will is extracted from there. Everything is tracked - transactions with vendors or with customers.

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Odoo Accounting Dashboard

You’ll have your customers' buying habits, preferences and payment history recorded. And you can quickly locate invoices from vendors to proceed with the payment.

The future is digital. Emailing an invoice to a client is convenient for both of you. And customers can pay you right away with a click. Nowadays, software has many different payment channels. Credit and debit cards, bank transfers and e-wallets.

You can also keep track of your bank account movements. Some accounting software can synchronise with your bank accounts.


Reduce costs

Increased speed and efficiency helps to reduce costs

There are costs that can be cut. If you have an accounting software, you don’t need to hire a bookkeeper. Or pay extra hours to your accounting department. The costs of software are comparably low to that. A monthly or annual subscriptioncomes with support, tools, and updates.

Using software as a tool allows for staff members to focus on more important tasks. Allows them to do more with their time.


Reporting

Get accurate financial information at the right time

Many accounting systems have reporting useful functions. You can create all types of reports with a click of a button.

Be ready for impromptu meetings and rid yourself of a time-consuming process.

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Personalised Report made in Odoo Accounting

Make better decisions . By having access to real-time, accurate information, you’re equipped with the most recent data to make important decisions. Outdated information will prompt you to make decisions based on the past, not the present. And the time spent on compiling the right information could be put to better use.

Have an accurate history. You’ll have a full view of how your business is performing compared to last year or the year before. See where you spent money, how many customers you gained (or lost) and have forecasts to plan ahead.


Taxes

All your financial details are in one place and are easy to track

Some accounting programs have tax return functions. They calculate your return and you don’t have to work out the details by hand.

Keeping proper and accurate records will make it easier to take care of taxes. A lot of accounting systems take tax office rules into account when creating invoices. Not only will reduce your headaches during tax season, it’ll make audits shorter.


Portability

You can check your finances from any device, at any time

Instant access to information is what defines us today. Having everything on our fingertips, a push of a button. The same goes for business. You don’t have to wait to get to the office or until the next day. You can solve issues and problems right away.


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Access to your businesses information from anywhere atany time.

You can have your business at home or on your mobile phone.

Odoo Accounting mobile view


How to choose an accounting solution?

There’s a lot of accounting solutions to choose from. Not every system is the best for your company. You have to be aware of your needs before opting for one. Just because a software is from awell-known brand, doesn’t mean it’ll help you. In fact, it can have the opposite effect.

Carefully check if the product’s features and functionalities match your needs.

The cheapest choice is not the best. Or the more expensive. See if the overall value of features and functionalities.

Make sure the software is scalable. As your business grows, it’s not efficient to keep changing systems every now and then.

Choose a user-friendly program. If it’s not easy to do tasks, then you’re not taking full advantage of it and eventually stop using it.

See if you can integrate it with other programs. Having a fully integrated system to manage all your activities is more beneficial than you might think.

Gone are the days where businesses bought software for the sake of owning it. Now, it’s a tool to help you get ahead. To improve your business’s performance and to help you reach your goals.