- It consumes time: all the tasks related to the realization of invoices and payroll, the calculation of taxes, the resolution of supplier doubts, correctly accounting for each operation through entries … takes time. In addition, in case of suffering some kind of error, all the work must be re-done.
- Avoid possible fines: not keeping a correct and up-to-date accounting can have very negative consequences in the form of a sanction in case of facing an inspection.
- It allows planning the future: from the knowledge of the financial and economic situation of the company, all subsequent activity can be planned from the knowledge of the available resources and capacities.
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What are the advantages of accounting systems?
Most programs have a series of resources that facilitate the performance of accounting tasks:
- Basic functions of account books: in most programs the accounting books do not have to be done “by hand”, but rather, when posting an invoice, for example, the entry and the corresponding entry in the accounting books are automatically generated.
- Ease of use: they are manageable and intuitive programs and it is not necessary to have a lot of knowledge in accounting to know how they work.
- Customer service: most companies that offer accounting systems have customer service/customer Support that answers any questions regarding the operation of the program and that quickly resolves any unforeseen events that may occur. Like QuickBooks has QuickBooks Error Support.
- Price: the more complete, the more expensive the program will be. However, for the accounting of an SME (which makes up the majority of the business fabric), it is not necessary to acquire very complex programs either, so the cost in this concept is not high.
- There are systems designed for particular industries: there are accounting programs developed specifically for certain sectors, in a way that makes accounting even easier.
What should be considered when choosing a program?
Each company, depending on its activity or operation, will require one program or another. The factors that you will need to take into account are the following:
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- Functions that it is capable of performing: most programs are capable of producing the following functionalities: Financial reports
- Tax reports
- Declarations of debtors and creditors
- Show cash flow statements
- Show the accounts related to the trading account and the balance sheet
In case a program does not perform most of these functions, discard it.
- Ease of understanding: more complex programs also have more advanced technology and a greater number of functionalities. However, if the person in charge of managing it does not understand it, the company will not be able to benefit from it either. In the same way, if it does not require such a developed system, it assumes an excessive cost.
- Required technical aspects: when choosing a program, the following aspects must be taken into account and compared to find the one most suitable for the company: Average implantation time
- Characteristics
- Modules included
- Platform
- Need for additional licenses or computers
- Number of users it handles
- Reference companies: where the software is installed
- Evaluate the needs of the company: the company has to assess what attributes and functions of a program it values the most and what will be the most common tasks that it will perform through it. Therefore, the chosen program is according to the specific needs of the company.
- Find the accounting program that best fits the company: as mentioned, there are systems for specific sectors. If you are part of one of them, acquiring these more specific programs helps to prepare the accounting task more quickly and reliably.
- Think about the usefulness of the program in the long term: incorporating an accounting program requires time, not so much installation, but understanding on the part of the person or people in charge of managing it. In addition, there are constant changes in accounting matters. For this reason, companies are forced to update their software every time there are legislative changes in this regard. The chosen company has to facilitate the delivery of updates and that they adapt correctly to the changes in accounting matters that have occurred.
What accounting program to choose?
Depending on the size of the company, different programs can be found on the market:
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- For freelancers: they are programs that help to manage simpler accounting. As an example, we find programs like QuickBooks Deluxe, Money Plus Deluxe, or GnuCash. Normally, they have functions such as Budget planning
- Personal Accounting Spreadsheets
- Quick file categorization
- Automatic Updates
- Integrated help functions
- For small companies: these are programs with basic functionalities, such as Sage MAS 90or the 200 ERP. They include tools that the previous ones do not, such as Payroll
- Customer relationship management
- Financial reports
- For medium-sized companies: they are more complete programs that take into account more specific functions and aspects related to accounting. They allow important functionality, but without specific customization about the structure of the company. As examples, we find programs like Navision. Bookkeeping Services New York is also one of the most promising company to handle your books
- For medium and large companies: they are very complete programs that require an implementation period of more than five or six months because their functions require significant integration, customization, and configuration. Their main advantage is that they are designed and prepared to support the specific processes of the company because they can be customized and parameterized according to the needs of the company. The most important companies that offer these types of programs are Sage and Microsoft.