Accounting softwares like Xero for bookkeeping enables you to manage and track your business’s financial transactions easily and accurately. Different Xero accounting firms offer accounting software with different additional functions that may be useful depending on your nature of business. For example, some software is designed for basic accounting functions, and some are designed to manage more complex accounting functions and may include other integrated functions such as inventory and payroll.
Accounting softwares today are much more comprehensive and accurate. Your company will be able to process payrolls, invoices, and other accounting documents much more quickly. If you are an entrepreneur or a company seeking to automate your accounting system, then accounting software will be highly beneficial for you. These are some of the benefits of using accounting software than traditional bookkeeping methods (i.e. bookkeeping by hand).
Increase in Accuracy
Accounting software can assist to reduce or eliminate human errors especially in calculation hence improving the overall accuracy of your financial report. Traditional bookkeeping processes involve making a lot of mathematical calculations by hand or even mentally which most of the time will incur a miscalculation or even a double entry. It will be time-consuming to look back at each individual transaction to identify the erroneous record that could affect the year-end financial reporting. However, as much as the accounting software can eliminate errors in calculation, it is still prone human errors arising from data entry.
Reduce Time Spent on Generating Financial Reports
Computers are well-known for processing information faster than a human brain. Hence by using accounting software, it allows businesses to process their accounts in a much shorter time compared to manual processing.
For example, the calculation of GST is done automatically when a business issues tax invoices directly from the software, however in many manual issuances of tax invoice, such calculations of GST or discount have to be computed manually by hand. It can take very long to take into consideration any exemptions or extra tax, and the accounts will be more susceptible to calculation errors, which will in turn affect many other official documents and even land you in legal trouble.
Generation of Useful Financial Insights
Some software can provide useful insights on your business’s financial well-being. The software can easily identify important indicators affecting the Profit and Loss of the business which can then be taken into a discussion by the management to improve the overall profitability of the business.
These data can also be input into data analysis software tools for the company to chart their revenue or other KPI over time to measure their current performance. By planning and observing your business’ financial status, you will be able to come up with a strategic plan that is better suited for the current status of the financial markets.
Reduce in Accounting Cost
With the software, the accounting team has lesser manual work and hence the team can be reduced to just having someone who can ensure data accuracy. There are also integrated functions for payroll and inventory that can further reduce the company administration cost.
Alternatively, if you are only interested in payroll services in Singapore and do not wish to invest in accounting software, there are many payroll outsourcing Singapore firms that can help provide support in payroll processing, claims submission, and any other HR matters. They can help further support the accounting and management team through accurate advice and timely consultation. Payroll services in Singapore can also reduce accounting costs as much as 10%, and produce reliable management solutions for your company.
Generation of Financial Reports
Accounting software helps businesses to supply the accounting team with timely and accurate financial information. Most of the accounting software has reporting functions that enable users to create this various types of financial reports such as the profit and loss, balance sheet, general ledger etc by a click of a button. Traditionally, creating such a report manually takes days to months.
Transform your Accounting System
If you have been convinced by the benefits of accounting software and wish to change your current accounting system, you can engage the services of a provider to update your system to the XERO Online Accounting system. This system is much more secure and accurate as compared to the traditional accounting method. Contact us today for more information on the XERO system and how we can help you successfully adopt accounting softwares into your company.
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