What is Accounting Software?
Accounting software is an IT solution to facilitate the bookkeeping of the company and its financial management. It can range from simple management of quotes, invoices, cash until the complete internalisation of the general compatibility.
How it works ?
Accounting software is designed to automate and internalize all or part of the services of your accountant (debit and credit accounting, financial advice, accounting documents) as well as routine administrative operations (creation of quotes, invoices, voucher orders, supply management, collection of invoices and expense reports, tracking payments, etc.).
The accounting software offers a financial view. This is why it is different from commercial management software and invoicing software. It records the financial impacts of current operations. They are particularly recommended for small companies (startups, TEPs, self-employed) and medium-sized companies (SMEs, SMIs) that need to know precisely the debits and credits from their professional bank accounts or the state of the treasury in real time.
Main Features of an Accounting Software
The features of the accounting software represents a powerful lever for the economic development of your company or your association.
Make Simplified Payments via a Paperless Platform
To facilitate exchanges between your partners or customers and your company, some accounting software programs create the possibility of making payments via a platform of electronic payment means to pay bills. The movement of your accounts are directly integrated into your accounting to automate bank reconciliation and lettering. The exchanges are totally secure so that you can make your payments without any worries.
Commercial Management and Billing
The accounting software, integrated into a CRM module, goes further by facilitating commercial management (quotes and automated invoices). In some cases, you can also monitor your inventory management. Whether you are a self-employed professional, a craftsman or a commercial company (self-manager, very small businesses, SMEs, large companies), you can follow your accounts to be perfectly aware of the financial situation of your company. In line with the work of your accountant, you can prepare your balance sheet, income statement and general appendix with much greater ease by regularly updating your accounting software.
Who Uses Accounting Software?
Any company starting from just one person must use accounting software, even if it is only for the preparation of estimates & invoices, payments and the follow-up of late customers. Medium-sized companies will use accounting software as a financial management tool. Larger companies have used accounting software to internalize all accounting.
Why Use an Accounting Software in Business?
Benefits of Online Accounting Software
The use of accounting software ensures an efficient response to your functional needs in general accounting and offers you the possibility of analyzing your results (cost accounting). Much more convenient than Excel, accounting software:
- Save time by automating common accounting operations.
- Allows you to reduce your accounting costs by internalizing services provided by accountants.
- Facilitate the completion of balance sheets.
- Helps to track third-party accounts.
- Ensures compliance with legal obligations. They meet a need for rigor and transparency required for all French companies.
- You follow day by day cash receipts and disbursements as well as fixed assets.
- The accounting documents are modified as they change in the general ledger.
- The accounting management software may be used in conjunction with the work of a certified public accountant. Some software programs give your accountant access to your company's accounts so that he or she can perform your company's accounting by taking into consideration the data integrated into your online software.
- Tax and VAT reporting procedures and declarations will be facilitated by the use of the software.
- Accounting software helps you make the right decisions by having a realistic view of the state of your company's finances, but also by allowing you to project new investments.
- SaaS accounting software (online) does not depend on the operating system and updates are done automatically.
- Open Source accounting software does not comply with the financial law.
How to Choose?
Here are some important features to consider when choosing the right accounting software:
- Good interface ergonomics: It must be easy to understand and very simple to use. Online accounting solutions are more intuitive. Avoid choosing a commercial management software that would be a real gas plant.
- Entering accounting entries: This is the main action of your accounting software and must be able to be done quickly so as not to waste your time on a daily basis. Choose a basic entry with the import and export of your data in order to be used for the figures if you are in a meeting or with your accountant who will more easily carry out bank reconciliations.
- Third-party account monitoring: It is important to know the movements of the accounts related to your partners and employees.
- The VAT return if you are subject to it.
- The realization of an analytical forecast: It invites you to become acquainted with the possibilities of your company and to better apprehend your possibilities to imagine a new project. This gives you a long-term view of the potential development of your business.
- The ability to export the accounting entries and to develop the tax package more easily.
- The dashboard gives a synthetic view of the accounting situation of the company
Accounting Software for Entrepreneurs and Freelancers
- Sage Accounting Online
Accounting Software for Startups and TPE
- Easy counting
- Compta Sky
- EBP software online
- Itool Accounting
Accounting software for SMEs
- Yourcegid Finance Y2
- Cegid accounting
Accounting software is a tool that often has a strategic role in the decision-making process: cost, purchase cost, margins, etc. In an external role, the purpose of the activity is to provide a vision of the evolution of your company's value: balance sheet, income statement, cash flow. Discover our accounting guides today!
Complementary solutions of Accounting
Billing and Invoicing
Financial Risk Management
Billing and Provisioning