Since technology was first invented, we have believed that they should make our lives more convenient! Check out the following reasons why we think that every company should utilise the technology of accounting software in order to save time and money, as well as to make their life more convenient in general.
To help you get started, SAP accounting system Malaysia is the ideal option to assist you escape the headaches of accounting while also saving you a significant amount of money in the process. Additionally, getting started is very easy and intuitive for entrepreneurs and online business website owners.
In order to explain accounting software, this article attempts to explain everything in simple terms, as well as why we believe you should use accounting software in conjunction with your website if you are an online business owner.
Since many of our readers are new to operating a company website or using accounting software, we’ve included some fundamental “terms and accounting essentials” to get them started.
What Are Accounts And How Do They Differ From One Another?
A set of “accounts” showing everything a business has sold as well as everything it has purchased is required to be filed by every corporation once a year by the government. If you own and operate a limited liability company (Ltd), you must file yearly accounts in addition to your personal tax return.
If you are a single owner, your accounting records will be merged with your personal tax return for filing purposes. Typically, accounts are produced by a bookkeeper and reviewed by an accountant before being submitted for approval.
What Exactly Is Accounting Software And How Does It Function?
Accounting software is often used to perform the following functions:
- Allows you to create invoices and keep track of them.
- Keep a detailed account of every penny that you spend.
- Find out who hasn’t paid you what you’re owed.
- Inspect your bank account to ensure that the information within “reconciles” with the information in your accounting software.
- Prepare your financial statements, as well as your SST returns and other tax returns.
Accounting software is often used by the individuals listed below:
- Your bookkeeper will input all of your receipts, invoices, and other documents.
- Your accountant will be in charge of preparing your financial statements.
- Every aspect of your company’s financial health should be known to you.
What Are The Advantages of Using Accounting Software?
In order of importance, the following are the top four reasons for using accounting software:
- So that you may save time
It is designed for accounting software to automate many of the time-consuming calculations for you, allowing you to save time.
- To automate activities that take a long time
Many accounting software solutions can handle duties such as bank reconciliation and SST returns for you, saving you time and allowing you to concentrate on other things.
- Financial viability
Maintaining an accurate record of your financial transactions may assist you in managing your money more effectively.
- In order to maintain legal status
Financial records and tax payments are needed of any business, regardless of whether it is a single proprietorship or a recognised corporation (LLC). Accounting software is a critical component of being able to do this.
What Is The Source of Your Company’s Problems?
Documents on paper
In contrast to what a computer can do, totals cannot be computed automatically. Not to forget that iIt takes much longer than when using software. In the case of a fire, it is quite easy to destroy documents.
In general, it is inefficient and ineffective. Accountancy costs will increase as a result of the fact that a bookkeeper and/or accountant will need to look through all of your paper records in order to fulfil their statutory obligations.
Using a spreadsheet, many accounting software procedures, such as bank reconciliation and SST reporting, are impossible to automate completely. Because your accountant will almost certainly need to enter the information into the accounting software they use to perform their duties, it is possible that you may pay extra in accountancy costs as a result of this change.
Nothing is being done to address the situation. Doing nothing is simply not an option since you are required by law to report on your financial transactions!
In What Ways Does Integration Differ From Other Concepts?
A simple definition of “integration” is the act of connecting your website to your accounting software.
The following are the two most often mentioned integration goals:
- When consumers make orders on your website, invoices are generated in your accounting software on the backend automatically.
- Stock data must be synchronized.
There are a number of advantages.
First of all, you can save time by automating time-consuming tasks such as invoice creation.
Secondly, since integration automates the bulk of the labour, you will save money on bookkeeping and accounting costs.
Improve your knowledge of your financial picture since integration enables you to stay up to date with your invoicing and stock information on a continuous basis rather than just once a month after your bookkeeper has manually generated all of your invoices.