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May 01

Role of Accounting Software in Business

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Business aims at profit, but the profit comes only with high amount of risks. Business and risks are interrelated, especially, in initial days of setups where even small mistakes can lead to huge losses. Whether you’ve just started a business or are running a successful one, a base rule applies to both cases – always keep track of your finances. Any business must keep a tab on its minor day to day expenses to huge expenditures. But, technology has made this task easier and less cumbersome compared to traditional methods. New-age technology products like accounting software and others have automated various accounting processes making them fast and accurate.

Accounting software, primarily, keeps track of your cash flows, processes and documents, transactions, performs calculations and generates reports. But its functionality is not limited to these; in the long run, accounting software helps in improving operations, profitability, efficiency and also reduce costs. There are different kinds of accounting softwares available for varying kinds, types and sizes of business. In today’s world of cut throat competition, accounting software plays an important role in businesses which can be summarized as -

  1. Accounting software brings discipline in business finances, which in turn helps in better financial management.
  2. Easy to use business accounting software makes cumbersome calculations within minutes. Accurate data helps in faster decision making.
  3. Payroll software automates process of salary generation, so employers do not need to keep record of employee’s leaves, wages, bonus, tax deductions, credit etc.
  4. Accounting software helps in securing sensitive financial data of the company like loans, profits and revenues and as you don’t need outsource accounting processes.
  5. Accounting software can be customized as per business type and it helps in assessing efficiency and progress.
  6. Accounting software plays an important role in planning future tasks using budgeting and forecasting.
  7. Business accounting software facilitates generation of daily reports that help in tracking daily activities, procedure, operations and controlling workflow. It is possible to generate reports based on different parameters and time periods as per your requirement.
  8. Information from accounting software can also be used to plan marketing strategies and product planning.

Accounting software brings automation to various aspects of business from accounting inventory, billing to payment processing and payroll calculations. Go ahead and make complex and strenuous accounting procedures, of your business, easy, accurate and fast with accounting software

Source: www.ccskills-nos.org.uk

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About the author

Njumoke Abiola-Oseni

Njumoke Abiola-Oseni is the Executive Director, Training and Business Intelligence at Trisat Communications Ltd. She holds a Bachelors Degree(B.Tech) in Computer Engineering with ICT Certifications such as Cisco Certified Network Associate (CCNA), Project Management, MikroTik Certified Network Associate (MTCNA), and Information Technology Infrastructure Library (ITIL). She currently administers all Trisat training engagements and consults for SMBs on Business Intelligence such as Customer Relationship Management (CRM), Microsoft Small Business Server (SBS), Messaging Systems and Call Center Solutions and Customised Software Application. Njumoke Abiola-Oseni is a Co-Founder of Trisat Communications Ltd.