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The Right Accounting Software Can Help Avoid Costly Mistakes

Jan 27, 2023

Accounting software is an important part of business. Typically, small business owners aren’t going to be experts at accounting and bookkeeping when they start out. They are starting a business for their expertise in the business’ field. Not their ability to handle money. This is where accounting software comes into play. It can help businesses both small and large handle their money and transactions. It can also assist with internal costs and expenses, including inventory and payroll. Essentially, accounting software is among the most useful types of software that anyone can use for their business and it makes running one a whole lot easier. This article is going to glance at useful types of accounting software and the software offerings that offer some of the many benefits using them offers. 

Types of Accounting Software

There are a number of different types of accounting software. Each has their own specialty and can help manage money or business in a different way. Some of the most common ones include: 

  • Billing Systems - This software helps with the day to day tasks of receiving payments and sending out invoices as necessary. They are an excellent tool and ensure that a company can keep good track of their financial activity. 
  • Payroll Systems - No employee is going to be happy if their paychecks are late or for the wrong amount. Payroll software has made the process of getting people paid much easier than it used to be back in the day. 
  • ERP Software - ERP refers to “Enterprise Resource Planning” and involves a number of different aspects of an enterprise business. This can include managing inventory, marketing, HR needs, financial transactions and more. The key about ERP is it links all of the different aspects of enterprise needs together. 

Benefits of Accounting Software

Like a lot of software, accounting software can make running a business much easier. This comes through in a number of different benefits that are usually pretty easily seen when working. Some of the benefits of accounting software include: 

  • Less Error Prone - Humans make errors sometimes. It’s just how things are. A lot of accounting software will reduce human error in multiple different ways. First, it stores records, so there’s no chance of misrepresenting the past. Second, it will ensure there’s no human mathematical errors. Finally, it automates many of the tasks that people have to do each day. 
  • Save Time - Accounting software helps get tasks done more quickly. This means that an accounting department doesn’t need as many people and they can focus on more tasks. Automating a simple task can save a company a huge amount of time. 
  • Historical Tracking - Accounting software makes it easy to go into all of your financial records to ensure accuracy and look at past activity. This can give an overall view of a company’s health and typically will allow for easy reports to be generated. 

Popular Accounting Software

There’s a lot of software offerings out there. A good software needs to ensure that it handles transactions easily and automates tasks well. Having a good reporting feature will make sure people can understand a company’s finances really well. Some of the popular software options right now include: 

  • Quickbooks - This is one of the most popular software offerings in the entire world and used by countless companies both large and small. 
  • FreshBooks - This company started with the goal of making small business finances far easier to handle and they have continued to become more and more popular every year. 
  • Oracle Netsuite - If you’re looking for a solution that excels in an enterprise level of business, then there’s a good chance that this is the offering for you. 
  • Zoho Books - This software is perfect for people who use any of the other Zoho apps. It integrates them in nearly perfectly.