The software is used by professionals engaged in the process of accounting. The introduction and use of the Integrated Accounting Software application have made significant revolutions in the accounting world. It has made the process of financial transactions efficient and fast.
All tasks like assets and payable, income analysis, ledger, balance, balance sheets, income and expense sheets, and payroll are processed using accounting software.
The use of software facilitates the organization in creating future budgets supported by generated financial reports. The generated reports further allow management to have a detailed analysis of the organization’s financial performance.
Automation of the online accounting services process effectively reduces transactional costs by reducing the engagement of professionals in performing accounting processes manually. Using the system application, a company can keep the records up-to-date, and a company gets the advantage of improved accuracy due to the reduction of human errors.
What Is Integrated Accounting Software?
As the term recommends, an integrated accounting system is an upgraded version of Online accounting services that combines all the major financial functions into one application. In short, it eliminates the need to maintain separate books or records for management accounting purposes, such as ordering, costing, and much more.
An integrated system brings together different software applications effortlessly without additional and expensive software or manual manipulation. For illustration, it will automatically re-key information from order management into the accounting software. It not only saves time and energy but also reduces the probabilities of any human error. Plus, the system receives a constant flow of data, keeping it up-to-date all the time.
Features of an Integrated Accounting Software
Integrated accounting software has two types of modules: core and non-core modules
The core modules consist of key functionalities, which can be found in almost every integrated accounting system. It includes:
- Accounts receivable and payable
- Purchase order
- General ledger
- Bank reconciliation
- Billing and online bookkeeping services
- Stock inventory
Whereas non-core modules are the optional add-ons that will be added or removed as per the business needs. For instance, the need for multi-currency and multi-language support is beneficial for businesses with a global presence.
Some other non-core features are debt collection, payroll, electronic payment processing, timesheet, and more
In fact, many systems also combine customer relationship management software and full inventory management to form a fully integrated enterprise resource planning system. These modules are seamlessly integrated.
An organization is benefitted in some ways by integrating accounting software in its system application
- The software makes the processes of knowledge entry fast and straightforward.
- It helps in improving the correctness of the financial process by reducing human errors by automating the processes.
- The solution helps in enhancing collaboration among the departments by using a centralized database.
- The application reduces operational cost as the need for humans to perform financial tasks is reduced.
- It simplifies tax compliance for an organization or company, as it can be customized to handle state tax codes.
- The use of accounting software reduces the process of approval time requests; thus, it intensifies productivity.
- The application enhances the organization’s decision-making power by acquiring in-depth, updated, and informative reports.
After knowing the benefits of accounting software, the question often triggers in mind who is this for? The answer is instinctive. Every organization dealing with accounting can get the benefit of this software application.
The major organizational categories that can benefit the software are non-profit organizations, small businesses, government agencies, native tribes & tribal government, and healthcare entities.
Why You Should Consider Using an Integrated Accounting Software
Here are the five main benefits of using an integrated accounting system.
Provides a Real-Time View of All Transactions
If you have standalone accounting software, it will require you to manually take all the information from the ordering system and enter it in the accounting one. It not only invites human error, but there are chances that you simply won’t have the updated financial information needed to form a fast and smart move. It hampers business growth as well as requires an extra workforce to re-enter the data.
This issue can be easily avoided by using an integrated accounting system
Integrated accounting provides you with a real-time view of all the transactions associated with the business. The information automatically flows into the accounting because the transactions occur.
Another plus point is that the cloud-based system has enabled users to easily carry their complete financial information on their device, wherever they go.
Helps in Calculating Accurate Job Costing’s and Commissions
The problem with standalone accounting is that it doesn’t have direct integration with order management. Thus, it doesn’t know which costs accompany which jobs. Productive, integrated accounting software can smoothly perform processes like calculating job costs, sales commissions, and more.
Since all the postings are automatically made to the general ledgers, accounts receivables, and payables, accounting software has all the information needed to calculate the commissions and other job costs. The most significant advantage is that the calculation is entirely accurate, with no chance of error. In another viewpoint, it also eliminates the need to process different costs manually. Otherwise, it might become another manual process altogether in itself to perform.
Increases the Reliability of Data Entry
With standalone accounting software, you must manually enter all your customers’ and vendors’ data from one application to another. This often results in duplication of data or incomplete entries. In short, there’s no reliability of knowledge as these entries are susceptible to human error.
There is no contradiction that the data entry task requires extensive attention and time. The need for manually entering data gets eliminated by implementing the integrated accounting system.
An integrated accounting system removes challenges like double entries or the chances of missing an entry. In some cases, it also identifies identical entries, if any, and merges them into one.
Increases Productivity at Work
Re-keying entries cost extra time and workforce. Apart from this, it invites human error and omission, which may go unnoticed and leads to miscalculation.
By using an integrated accounting system, business houses can make efficient use of their time. An integrated accounting system with other business management systems removes re-keying, which results in freeing up extra time. This overtime can then be wont to focus more on new opportunities or other business development activities. Furthermore, the integration of systems ensures the reliability of the information, which can be utilized for tax filing activities.
Speeds up Decision Making
Lastly, and most importantly, you can access and operate all financial information related to your business from a single interface.
Linking all accounts receivable and payables ensure higher visibility of transactions on both vendor and customer sides. Apart from that, it makes it easy to analyze all your historical data from one place and make insightful decisions. You can easily evaluate transactions just like the vendor’s supply history, sales estimates, and other information from one dashboard and form smart business strategies around it.
Why it is important to choose the right team
Choosing the right team to implement your accounting software plays a crucial role as this ascertains the amount of benefit your organization can avail from implementing the software.
An integrated accounting will soon become the norm for each company. After all, no information exists in isolation, and integration results in a seamless flow of information from one function to another. Thus, the key here is to choose the right system that fits your unique business needs well.
You can either choose to buy the system off the shelf or have a bespoke system developed as per your needs. But before selecting, you would like to possess a transparent idea of your requirements. It would help if you asked questions like.
- What are the functionalities you will genuinely need?
- Which industry does the system operate in?
- Does the system stay in compliance with dynamic laws and regulations that are regularly implemented?
Furthermore, you will need to consider its ease of use. Your employees, even a non-tech perceptive person, should find it easy to use with minimal training. However, in recent times, the integrated accounting software available has subsided complicated to use.
But many sellers offer a free trial of their software. You and your staff can try out some system features and see if the interface and functionality feel right. In the end, each system comes with its own different set of pricing plans. Don’t forget to think about the budget before making a sale.