Why Business Accounting Software Crucial To Your Business?

Author: Ashish Jain

With growing corporatization and commercialization in today's fast moving world, it has become almost mandatory for all business entities to keep up with the pace of changes by improving on organizational efficiency. There are various ways of improving an organization's managerial and market productivity. And one such sphere where companies are needed to be attentive is clear business statements.





If a company doesn't have a realization of its exact business status through various financial and accounting statements, managers and directors would be incapable of chalking out strategies to strengthen the company's position in the industry. In such a situation with the advent of information technology a good number of business accounting software have come on the block. This has made it easier for the companies to maintain their balance sheets.





There exists a strong liaison between financial decisions and accounts of a business entity. A balance sheet prepared by best available business accounting software gives complete information on company's revenue and expenses. And once decision makers get acquainted with these details, making strategies no longer remain an ordeal. These software are of special significance in helping you ascertain value added tax and companies corporation tax that is paid out of profit of the company.





Business accounting software give a detailed insight into all accounting aggregates including profit and loss statements and revenue expense statements that is better known as balance sheet. These aggregates are of great assistance in making financial interpolations as well as ascertaining financial correlation of various accounting aggregates.





Assets and liabilities of a company ascertained with the help of business accounting software would guide board of directors in finding out areas where the company needs to improve. A sagacious chairperson or head of a corporate entity could get ways to improve his/her equity by going through account details furnished by accounting software.





These business accounting software could be of various types depending upon differing needs of various organizations. For example a retail business accounting software is specifically designed to suit the requirement of entities involved in retail business and it can't work well for trans-national business organizations or bigger corporations.





Before choosing one such software for your company, you must be sure that its features are perfect to meet accounting needs of your company.





Present decade has witnessed introduction of super specialized business accounting software that are created to fulfill specific accounting urges of companies working in one particular industry. For example accounting software for companies of investment industry are different from the one meant for


direct sales industry.





So always be careful while buying accounting software as you would make financial decisions based on its findings. An imperfect software could even misguide you in your business decisions.

About the Author:

The author writes about a number of different topics. For more information on accounting software visit http://www.managemyaccounting.com/ and also visit the article pages: http://www.managemyaccounting.com/types-of-acconting-software/ and http://www.managemyaccounting.com/accounting-software/

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Why Shift To Accounting Software?

Author: Ashish Jain

Before tackling the question as to why should you switch to accounting software, here are a few lines about accounting first.



Accounting in business helps in proper management of revenues and expenditures that ultimately decide whether a business is heading towards failure or success. It is a process of collecting, summarizing and analyzing the financial data of an organization.



To manage all these, you can either hire an accountant or invest in a good accounting software. And the growing popularity of accounting software suggests that the latter option is a better investment. So, do not be discouraged if you do not have any knowledge about accounting. Just invest in a good accounting software which in turn will take care of your accounts.



In fact, it is becoming a norm to purchase an accounting software application before starting a business. You can find accounting software for both small as well as large businesses. You can choose from a basket of multiple accounting software programs. Depending on the type of business you have and how you run it, you have to choose the software package that compliments your business, instead of being a limiting force.



Simply put, the main advantages of switching over to accounting software are that it saves time as well as money. No doubt, your accountant(s) may be the best in business, but the following points will make it clear why an accounting software scores over any of them:



To remain competitive in this age, your business needs all the information quickly. You can not wait for the paper works to get finished. You must be aware of what is happening in your company. Accounting software can do all these things for you.



Modern businesses are all about managing time. To smoothly run your business, all you should look for is time management.



Accuracy is another thing where you can not let your guard down. While human beings can never be error free all the time, you will find that accounting software can be 100 percent correct at almost all the times.



Another advantage of accounting software is that it will keep you updated. It works great when applied to tracking tax codes changes.



All the current accounting software are easy to use, set up and navigate. And with the advancement of technology, they are becoming more specialized, catering to the needs of specialized businesses.



Last but not the least, an accounting software helps you save money as it is a one time purchase. Also, it can grow with your business thus minimizing your future cost.



All the above mentioned points are reasons enough to make you shift to an accounting software. An accounting software will make your business management better, more efficient and easier. But, choosing the best software is the most critical thing. By looking at the websites, reading reviews and talking to former users, you can apprise yourself about different accounting software. In fact, the accounting software market is full of different types of accounting software with many different features. You just need to calculate your needs and zero down on the product that suits you the best.

About the Author:
The author writes about a number of different topics. For more information on accounting software visit http://www.managemyaccounting.com/ and also visit the article page: http://www.managemyaccounting.com/benefits-of-accounting-software/

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DIY Accounting Limited Company Accounting Software

Author: Terry Cartwright

DIY Accounting produce Accounting Software for UK limited liability companies which consists of teamplates on excel spreadsheets, suitable for any small limited company aimed at automating monthly profit and loss account and a set of final company accounts with balance sheet ready for publication.





As the whole small business accounting software for a limited liability company is written on excel spreadsheets all bookkeeping transactions are visible. The excel spreadsheets have 12 monthly sheets in each work book. Prime data entry excel spreadsheets being provided for sales, purchases, cash, bank, savings account and credit card account. Financial transactions such as sales or expenses are then simply listed on the appropriate months? sheet. And changes or errors can easily be rectified by simply deleting errorsa or entering new information. This simple listing process is a huge advantage to non accountants as no previous bookkeeping or accountancy software knowledge is required.





Bank spreadsheets can be entered by listing the items that appear on the bank statement and include a box to enter the statement balance each month. The formulae within the excel spreadsheet then automatically checks that the entries made agree with the statement balance producing effective bank reconciliation. A good feature that ensures entries are recorded accurately in the companies accounts.





The simple bookkeeping entries that have been made to the sales,purchases and the bank statement is automatically transferred to the financial accounting file. In this file is a trial balance which actually automates all the double entry accounting transactions. No entries are required removing the need for users to have accounting experience. The Trial Balance is purely an accounting solution, visible and contains an audit check to again ensure the company accounts are accurate with no entries are required. The lack of entries in the area of accounting makes the product an ideal package for companies requiring a small business accounting software package.





Within the financial accounting software file is an automated monthly profit and loss account to enable limited companies to track their financial performance and very important, the package also produces a balanced profit and loss account and Balance Sheet in the correct format for submission of the final accounts. This set of final accounts automatically gathering the financial information from the basic entries made and includes the statutory notes required for a set of company accounts being published.





The package is equally suitablke for both vat and non vat registered business with vat returns produced at the touch of a button each quarter. To produce a vat return clients simply go to the vat file and select the quarter end date from a drop down menu and the figures for the vat return are automatically generated. The vat calculations can be disabled by non vat registered small businesses by simply changing the standard vat rate from 17.5 to zero making the accounting software suitable for both vat registered and non vat registered businesses.





The fixed asset schedule is preset with the capital allowance tax rates to automatically calculate capital allowances when fixed assets are entered. Depreciation is also automatically calculated with preset percentages that can be changed as required.





The limited company corporation tax liability is also calculated automatically in such a way that all the calculations; additions and deductions are both automated and visible. Capital allowances on both existing and new assets being shown on the corporation tax calculation.





Accountancy Knowledge Required





The limited liability company accounting software is based upon single entry of transactions requiring no accounting or bookkeeping knowledge. All the accounting knowledge required to perform the double entry of transactions which is a required feature to produce a balance sheet has been automated. The company accounts package has a feature so that the previous years? figures may be entered and lists of opening debtors and creditors recorded. A minimal level of accounting knowledge is required to correctly list the closing debtors and creditors and check the totals of those lists agrees with the automated balances shown on the company accounts balance sheet





Very Low Priced





At £15 the accounting software can save many businesses exempt from a full audit the need to employ an accountant potentially saving hundreds of pounds in professional fees. Hundreds of small limited companies with up to 20 employees also purchase the DIY Accounting Payroll Software which is sold separately from £14.99 and fully integrates into the Financial Accounting Software.





Other Features





The product has a stock control feature to monitor any stock losses. The limited company accounting software contains a wages interface that fully integrates the DIY Accounting Payroll Software when those files are saved into the same folder as the accounting software files. Being written on excel spreadsheets all transactions are visible and capable of being changed by for example overwriting any errors as opposed to a database system that requires new transactions to be entered to reverse previous entries. The sales and purchase spreadsheets include columns for entering CIS tax deductions and payments and the certificate numbers. The CIS tax being then automatically entered on the self assessment tax return. As the small business accounting software is written on excel spreadsheets then it is essential that users have a version of excel from 1998 onwards installed to use the program. The accounting software also works fine with an Open Source spreadsheet package.





Conclusion: to Buy or not to Buy





Exceptionally good value, very easy to use and produces exactly what every small limited company requires in a small business accounting software package, automated accounts requiring no bookkeeping skills and no previous financial accountancy software experience with the valuable end product of a fully automated final set of accounts for the limited liability company.

About the Author:

Terry Cartwright is a qualified accountant in the UK designs Accounting Software on excel spreadsheets providing complete Small Business Accounting Software and Company Accounts solutions for small to medium sized business with Payroll packages for 1 to 20 employees that automates the revenue payroll tax returns.

Article Source: http://www.articlesbase.com/business-articles/diy-accounting-limited-company-accounting-software-248613.html

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Product Review Small Business Accounting Software

Author: Terry Cartwright

Accounting Software Strengths





Easy to use by non accountants requiring no previous accounting knowledge and is basically a list of sales and a list of purchases on preset excel spreadsheets. Each workbook is arranged as 12 monthly spreadsheets with preset columns and uses an entry code letter to analyse both sales and expenditure.





Cash and bank spreadsheets are included as optional extras for those businesses that require them with a built in automated bank reconciliation. Entering bank transactions and a bank reconciliation has been arranged so the bank statements can be listed and when the statement total is entered the bank reconciliation is automated.





Monthly profit and loss account also includes a financial health check based upon an automated tax forecast to enable businesses to monitor their financial performance. By entering drawings the package then compares the net profit made with the likely tax liability plus the drawings.





Quarterly vat returns are generated for vat registered business and is also suitable for non vat registered business. Producing a vat rteurn is very easy. Simply click the vat file to open and click the date required from the drop down box and the vat return is produced.





The vat calculations can be disabled by non vat registered small businesses by simply changing the standard vat rate from 17.5 to zero making the accounting software suitable for both vat registered and non vat registered businesses.





The accounting package includes a stand alone sales invoice generator which requires invoices generated to be manually input into the sales sheet.





Capital allowances are automnated on the fixed asset schedule by simpoly listing assets bought. Depreciation is also automatically calculated with preset percentages that can be changed as required.





A major benefit of using this small business bookkeeping software is the templates are arranged in such a way to automatically generate an excel copy of the self assessment tax return. The excel self assessment tax return is arranged in the same layout as the official inland revenue form with the same box numbers making it easy to copy the figures from one to the other for submission.





Accounting Software Weaknesses





The Self-employed accounting software UK is based upon single entry of transactions and does not produce a balance sheet which is an optional requirement for self employed and therefore not a problem for the vast majority of businesses. DIY Accounting actually recommend clients who are self employed and wish to produce a balance sheet to use their Limited Company accounts package which does produce a balance sheet being based not on single entry but on double entry principles. The small business accounting software is suitable for a single tax year, the latest being 2007-08 and does not cater for accounting periods other than April to April. There are benefits in anyone self employed adopting the standard April to April financial year as this avoids tax allowances from two separate years being a feature of the accounts. When used by small businesses using the cash accounting system the bookkeeping entries to the sales and purchase sheets must be entered according to the dates money is paid or received rather than the dates invoices were issued. At the end of the financial year any invoices not yet entered require to be listed to adjust the final profit and loss account figures. This a major disadvantage if using the vat cash accounting scheme rather than the Accounting Software being reviewed.





Very Low Priced





At £12.99 the accounting software is basically available for loose change and will save many businesses the need to employ an accountant potentially saving hundreds of pounds in professional fees. For the financial year 2006-07 the basic package for non vat registered business is available at just £9.99 and the standard accounting software for vat registered small business is £12.99.





Other Features





The product has a stock control feature to monitor any stock losses. The small business accounting software contains a wages interface that fully integrates the DIY Accounting Payroll Software when those files are saved into the same folder as the accounting software files. A major advantage of the package is that being on excel spreadsheet all transactions can be seen, no hidden databases, and easily changed as required. The sales and purchase spreadsheets include columns for entering CIS tax deductions and payments and the certificate numbers. The CIS tax being then automatically entered on the self assessment tax return. it is essential that users have a version of excel from 1998 onwards installed to use the program which is written on excel spreadsheets. The accounting software also works fine with an Open Source spreadsheet package.





Conclusion: to Buy or not to Buy





Exceptionally good value, very easy to use and produces exactly what every small business requires, automated accounts requiring no bookkeeping skills and no previous accounting experience with the valuable end product of a fully automated self assessment tax return.

About the Author:

Terry Cartwright is a qualified accountant in the UK designs Accounting Software on excel spreadsheets providing complete Small Business Software solutions for small to medium sized business with Payroll Software packages for 1 to 20 employees that automates the revenue payroll tax returns.

Article Source: http://www.articlesbase.com/business-articles/product-review-small-business-accounting-software-248013.html

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5 Reasons That Accounting Software is Worth Purchasing

Author: Joe Coffee

So what's the big deal with small business accounting software? Why would someone spend money on something that can be done with a pencil and paper? To get fancy you can use a calculator or a excel spreadsheet for free.

Here are 5 quick reasons that accounting software might be the best route for a small business. Apply these benefits to your specific business and if 3 out of 5 make sense, then look into getting software. If these reasons do not help your situation, then rest assured your business accounting is operating just fine the way it is.

1. Price - The first thing on everyone's mind is "What will it cost me?" Of course there are many different products and prices, but here are few. Quicken Home and Business 2009 is regularly $99.99, but with sales and rebates it can be purchased for $49.99. Peachtree First Accounting 2009 is priced at $69.99. These prices are as of winter 2008. Older versions are, available as well, so this gives an idea of the price range to look at. Also keep in mind that this is a one-time purchase of a product that will be used on a daily or weekly basis.

2. Taxes - Automation should be used for taxes whenever possible. Manually figuring income, expenses, and deductions can take a very long time to organize and calculate or it can be very expensive to have done by an accountant. Software provides summaries that show a running status of expected taxes with deductions for easy planning. Reports can be customized to reflect specific financial information.

3. Time - Data is only entered in one time and can be copied and transferred to figure into many different fields. All the income, expenses, and write-offs are managed in one program for easy accessibility. See a running overall snapshot of what's coming in for the month, what's going out, and what's left in your accounts.

4. Accuracy - Once the numbers are input, the computations are automatically completed correctly. There is no need to double check the work or wonder if the numbers have been calculated exactly right.

5. Dependability - Would you like the capital to be automatically sorted into the right categories of savings, bills, payroll, and supplies? Be able to print reports to show employees or stock holders whenever they request to see 401K figures or cash flow reports for the last three months. Set up bill reminders so your creditors can count on payments like clockwork.

Most small businesses have a goal of growing the organization larger. If this is true for your business, take whatever time and energy is currently used for the accounting and multiply it by the amount of success that is desired. When using accounting software, only the increase in data entry is applicable because all the calculations are still automated. There are many more benefits of accounting software for individual situations, but just think about these 5. Are these features worth 2 tanks of gasoline or an office chair or desk?

About the Author:

Joe Coffee is a consultant for the online marketing firm, Web Shepherd. Visit www.AccountingAndYou.com for tips about leading methods of accounting and small business accounting options.

Article Source: http://www.articlesbase.com/small-business-articles/5-reasons-that-accounting-software-is-worth-purchasing-603335.html

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Accounting Software – How it Can Benefit you

Author: carolyn

Whether you are a new or well established business, maintaining your accounts can be a challenging job for any business. When it comes to accounts, many businesses entrust everything to an account. However by using an accounting software package as well you can save money and time that could be spent productively on other aspects of your business.





Choosing the right package however to do this job can often appear to be a difficult task and not all businesses will benefit from having accounting software. For those businesses that do benefit, having accounting software makes your accounts process very simple.





The detailed requirements that you will need within your accounts package depends on the type of business you have and how you run it. When choosing the right accounting software for your business it involves you deciding on your requirements and then looking for an accounts package that can meet all your overall and detailed requirements. The requirements that each accounting software have all vary, which is why it is important to consider what you will want out of your accounting software package. Some of the requirements that you may want from your accounting software include the following:





• Basic bookkeeping – this will document all your sales and purchasing as well as invoicing


• VAT calculations – allows you to keep track of VAT and to calculate your VAT


• Payroll processing – you should consider this as part of your accounting software if you have more than three employees. The payroll function calculates PAYE (pay as you earn) as well as your weekly/monthly National Insurance contributions.


• Production of management information and decision support – important if you need to prepare internal management reports periodically.


• Invoicing – every accounting software package should provide an invoicing function. Most provide an option of tailoring your invoices to your desired appearance.


• Credit control – this option highlights where customers have exceeded their limits and provides statements to chase them.


• Compatibility – you should think about whether your chosen accounting software is compatible with any other accounting systems, including the one that is used by your accountant.


• Stock control – if your business sells products then stock control is an important function to ensure that you have enough products in stock and so that you know what has been sold.





Accounting Software is application software that records and processes accounting transactions. Most accounting software packages consist of various modules/sections. The main core modules of most accounting software packages are as follows:





• Accounts receivable - this aspect of accounting software deals with the billing of customers for the use of products or services. It is where the company enters that money has been received.


• Accounts payable - this part of your accounting software is used when you receive an invoice. You add the invoice to this file and remove it when you have paid it. These invoices cover money that is owed to people such as suppliers.


• General ledger – this is the summary of all of the transactions that occur in the company. General ledger can also be known as nominal ledger and is the main accounting record of a business.


• Billing – when a business invoices its clients/customers


• Stock/Inventory – it could be important to your business to keep track of all the material/stock that you have within your business. By having stock/inventory lists it allows your business to keep control of its inventory.


• Purchase Order – when your business orders inventory you will be sent a purchase order, which is a document stating the type, quantity and agreed price of the inventory.


• Sales Order – order received by a business from a customer. These sales orders are recorded so that a business knows how much inventory it has. These sales orders may be for a product or for a service.





Accounting software could be just what your business needs but choosing the right one is highly important to ensure that you are getting exactly what you need from your accounting software.

About the Author:

Helen Cox is the web master for Synergy Technology, home of all your Accounting Software needs.



Please feel free to republish this article providing this resource box remains intact with a working hyperlink to our site.

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Suitable Accounting Software Exists for All Business Sizes

Author: Terry Cartwright

Accounting software can vary from multi million pound solutions for major public companies to simple managed lists of income and expenses. Simple accounting solutions are most suitable for small business.





The most comprehensive financial accounting packages incorporate financial reporting information and managed by teams of qualified accountants supported by accounts clerks, bookkeepers and substantial input from automated data sources. At the other end of the scale a self employed sole trader might use accounting software themselves and produce a set of financial accounts for the year in an afternoon.





Different accounting standards are required from accounting software dependent upon the fitness for purpose and client needs. Double entry bookkeeping automated through a database system and probably arranged in financial modules would normally be the choice of the majority of public companies. Single entry bookkeeping would not be an acceptable accounting solution for a limited company due to audit requirements and statutory obligations.





Single entry bookkeeping does however have its place in the market place for the smaller less complex businesses who maintain financial control through a close intimate knowledge of every financial transaction. The main objective of a sole trader is more likely to be the production of the tax accounts and complete the periodic and annual tax return forms.





The most sophisticated level of accounting software in the largest companies mirrors the accounting functions in those organisations with various financial modules for accounts receivable, accounts payable, stock control, general ledger and fixed assets. These accounting modules may also be integrated with non accounting functions such as production and dispatch functions and also divided into separate modules within the accounting function.





In larger companies the sales daybook and data entry of sales turnover would often be the responsibility of one department while the accounts receivable function might be split with a specialist credit control function within that accounting module. A further division may also include sales administration and customer records. Accounts payable would normally be multi functional of the purchasing department, purchase invoice accounts department and a legal function for overdue payments.





Accounting software for smaller companies and organisations is commonly a system of data entry of prime transactions which include sales income, purchase expenses and cash and bank transactions. The prime entry of these documents being to a database which automates the double entry accounting principles and produces both accounts receivable, accounts payable and general ledger databases.





Some accounting knowledge is usually required tom operate a database accounting software system and that financial knowledge is usually available within the company as most companies that use database accounting software also employ a bookkeeper or accounts clerks to input data and in slightly larger small companies also qualified accountants to manage the accounting function.





The need for accounting knowledge in a database system is partially to understand the data entry principles and the relevancy of the rules that need to be followed but essentially understanding of accounting principles is required to understand what is happening ton the information after input. And most important, a qualified accountant has the financial knowledge, training and experience to know what the system should be producing and how to query the database to retrieve that information.





A database accounting software system not only produces high quality financial records but offfers numerous financial control alternatives for both junior and senior business management. The accounting function also has the security of producing trial balances, periodic profit and loss accounts, balance sheets and other financial and statements for tax and control purposes.





Accounting solutions requiring little bookkeeping or accounting knowledge are available usually based uponh spreadsheets as this is the most transparent method of viewing the accounts.





Small limited companies must obtain accounting software based upon double entry accounting principles as in addition to producing a profit and loss account and a trial balance to demonstrate accuracy and integrity of the financial records plus a balance sheet is required for reporting purposes. Accounting standards require the limited company to have a system of financial control and accounting software is an essential tool in achieving this.





Some accounting knowledge either from the management or outsourcing the bookkeeping services is usually required with even the simplest database accounting solutions eve3n if this requires the understanding of what accounts receivable ledgers, accounts payable ledger and control accounts mean.





There are other possibilities and those businesses with a minimum of accounting knowledge can consider spreadsheet based accounting software. Accounting software compiled from spreadsheets is less flexible and often does not have the range of options a database system has due to the lack of database queries available. These disadvantages of flexibility being compensated by the fact that all entries are visible, transparent and changes can be made more easily.





Financially at the sole trader and self employed end of the business spectrum then the requirements from accounting software may be completely different. Gone are the sophistications of control accounts, trial balances and many aspects of financial control. The most important aspect of self employed accounting software is often to produce a set of accounts for tax purposes.





Self employed small business that do not require a balance sheet can use accounting software based upon single entry bookkeeping rather than double entry and with the reduced requirement for financial control then less financial queries to the system are required. In these respects the simpler an accounting solution the better and in this market an accounting solution written on spreadsheets that can produce the net taxable profit would meet the requirements.

About the Author:

Terry Cartwright, CEO DIY Accounting, a qualified accountant designs UK Accounting Software on excel spreadsheets and Payroll Software for small to medium sized business providing a complete accounting solution and also supplies Company Formation packages for new limited liability companies

Article Source: http://www.articlesbase.com/finance-articles/suitable-accounting-software-exists-for-all-business-sizes-298604.html

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