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How Accounting Software Improves Productivity

Accounting software is very important for maintaining your company’s finances. For doing so, financial management software and accounting software can be efficient accounting tools which improve productivity. If you run your company with productivity enhanced software, then the programs will be qualityful and efficient.

Depending on the program you are running, accounting software can provide time-saving accounting solutions and enhanced financial workflows.

Stuffs like invoicing your customers, bookkeeping optimization by recording your payments efficiently, and following up past-due receivables can be done successfully through financial management tools and effective accounting tools.

Features of Accounting Software

For choosing the best accounting software, first you need to identify the crucial features of the software.

The features that an accounting software should consist are:

Cloud-Based Access

“Cloud” is the online storage of information. Cloud-based accounting systems will allow you to use the accounting software anytime, anywhere. For the speciality of mobility, cloud-based accounting systems help to improve the productivity of the firm.

Cyber-security

If you can ensure proper cyber-security of your accounting software, then it will bring a greater operational flexibility in your business.

In 2023, more than 33 billion records will be hacked by cyber-attacks.

So it must be ensured that your company has digital accounting solutions for greater business benefits. If you have stronger security, that will enhance financial workflows and lose less money in the process which directly effects on improving profitability.

Improved User Experience

The after Covid situation gives us a clear picture of how hybrid work is going to be in the new system. The integration of offline and online work set up in the workplace is known as Hybrid system.

Integrated accounting software will enhance user experience which is a great feature of improved productivity.

When the employees using accounting software have a huge work-load on them, they cannot do their work efficiently. So if the accounting software provides greater user experience, then it will boost business productivity and increase team satisfaction.

Automation in Accounting Software

By using automation in accounting software, you can provide excellent customer experience which will eventually lead your company to increase business sales.

Automation will allow experienced increased efficiency in accounting software by reducing the time needed to accomplish certain tasks that run the accounting department.

Some of the automation includes:

Identifying accounting errors and then correcting them
Computing important statistical variables
Optimized financial reporting
Automated financial task completion
Optimized bookkeeping
Analytics and insights

The Relevant Statistics

In this age where COVID 19 took a huge place in the livelihood of people, speed, accuracy and uninterrupted data flow bear utmost importance. For this reason, businesses are choosing streamline financial processes that are free from the need of brainpower.

A survey conducted by Accounting Today in 2020, it was reported that 41% of small accounting firms are planning to spend more on tech in 2021. And in the large one, the percentage is 60%.

This shows the relevance of the accounting platform through the pandemic that has started a new trend of work which is the large workforce working from home.

According to another study 41% of America’s employees work from home. This shows us the upgoing number of people working remotely even after the pandemic period.

Besides this, online efficient accounting solutions let your business perform all of your financial recording responsibilities.

From organizing financial paperwork and computing payroll to keeping a sound track of inventory and preparing tax returns, advancement in cloud-based accounting systems- all have proven very useful in reducing hours spent on optimizing bookkeeping and accounting responsibilities, keeping ahead of their competitors.

Types of Accounting Software

There are many types of accounting software available for you. Here are some:

Enterprise Resource Planning System: Usually, ERP is used by large companies. This type of software is used to bring your functions together and merge them together in a centralized form. But this requires a steep price and longer installment period than other software.

Commercial Accounting Software:These software are the most common type of software. These software are ready-to-use and very easy to manage. These can also be customized according to your choice and adapt to your requirements of optimized bookkeeping software. This is considered the most cost-effective system for your company.

Custom Accounting Software: Each business has unique requirements. This is why companies sometimes prefer to have an accounting system which is created just for them including all the exclusive business features. Although, these software have to be maintained properly.

Likewise, you can choose between on-premise and cloud-based accounting systems. If you want an accounting system that keeps all the data access within your office premise, then an on-premise software will be needed.

On the contrary, if you want the access of the data anywhere, a cloud-based accounting system will be perfect for you.

How Accounting Software Improves Productivity

Up to 58% of accountants say that accounting software has increased productivity in business.

This is a very important factor to choose the right accounting software. Because, even though accounting software works with numbers and all, it is still operated by humans.

So, using accounting software will leave you the option to grow your business in terms of income, revenue and quality of workers experience.

Now, we are going to discuss how accounting software improves productivity.

Keep the right track of income and costs

The manual system of data entry can be a real thorn where an accountant has so many other things to handle than waiting for a two-factor authentication text to come so that they can enter into bank, credit card accounts, record a single line item or checking the transaction date and time and finally logging off.

Efficient accounting tools will help you by doing all the work automatically and ensuring data security at the same time. Workflow optimization tools offer the features to provide functionality to process the data efficiently. With these, you can run enhanced financial reporting.

Enable seamless financial operations

Starting to work in several accounting systems for lowering the loads can be very difficult and might be inefficient.

So, for efficient accounting software and ERP systems with in-built and cross-functional modules is considered the best.

If you can provide a central place for bookkeeping and accounting persons to work within the office to keep the information inside the company, then it will help you reduce the actions needed to complete accounting tasks.

These tools cover everything such as inventory management, optimized bookkeeping, streamline financial processes, employee efficiency checking tools and monitoring the income and costs from optimized financial reports

Fast invoicing and status tracking

There are many automated software programs available to calculate, send and track invoices as well as recognise payments.

Some financial management tools also have the special features of payment reminders when the due date is knocking at the door,time saving accounting solutions enable saving time for accounts receivables while reducing disputes.

There are other accounting software that ensures improved security of payment portals and gives options to improve productivity.

All these are means to get your business quick and accurate payment. No other means can be as useful as timeliness and accuracy. These will help you attract your clients and customers who keep your business running. These will also help you enhance the brand reputation of your company.

Ensure increased cash flow with reduces costs

The main tool behind increasing productivity is reducing the costs of business. And Automation in accounting is the key behind this.

The American Productivity and Quality Center collected data from 1500 companies across the whole country. They then put the cost-industry median cost-per-invoice at $5.83, smack in the middle of a very wide range.

Those who are in the highest performing position (25%) spend only $ 2.07 or even less for each invoice they process.

On the other hand, the lowest position holder spends$10 or more which is more than five times as much to get paid.

There are many variables related to this. Industry pattern, company size, invoicing cycle, but the one thing that remains constant in every company_ maturity in automation. The companies tend to maintain enhanced financial workflow so that they can invest more time and effort in streamline invoicing.

Accounting software increases productivity in many more ways. It helps to identify wasteful spending, eliminate delayed fees, make proper income tax calculations, adjust tax deductions and so on and thus increase productivity.

Increase security

Keeping data secure carries so much importance. Data has to be transformed through mails, downloads, uploads and many more processes which makes them vulnerable.

Cloud-based accounting systems are considered to be one of the best tools for boosting the productivity of your firm.

Any reliable accounting software provider should be PCI certified and have proper safeguards regarding privacy breaches and data loss.

Provide access to expertise

Business accounting efficiency depends highly on automation which cuts costs, time and increases productivity. Optimized financial reporting helps streamline compliance. Besides, software collaboration helps clear hundreds of meetings.

How Financfy is Your Best Accounting Software Option

Financfy will help you manage your business through the below management processes.

Cash Management
- Dashboard system helps to track businesses, branches and projects through different types of cash books using real time visibility.
- You will be able to ensure automated financial tasks through the improved record-keeping software.
- You will be able to work with a full financial report in front of you which will enhance financial workflow.
- Optimized bookkeeping software will help you to maintain proper cash flows
- Advanced cash in and cash-out facilities will help you track all the income and expenses properly
- Cloud based accounting systems will help you to maintain multiple businesses and projects at the same time.
- Will help you improve connectivity
- Enhanced financial reporting will help you to get proper insights by days, categories, projects and branches.
- Lastly, you will be able to be alert in real time zone

Sales Management
- Digital accounting solutions will make you available to update all the clients and customers information properly.
- Workflow optimization tools will improve cash flow with online invoicing.
- The payment process will be made easy from financial software integration.
- You will be able to create a unique identity for streamlined financial processes.
- Financfy will help you create recurring invoices.
- Keep track of products bought and sold.
- Automated financial tasks help to update the quantities with the
  flow of time.

Expense Management
- Cloud-based system will help you keep things organized.
- Your employees will be able to track, organize submit, approve and reconcile expenses.
- You can avoid errors.
- You can get company-wise visibility into spending.

Inventory Management
- Our accounting software will allow you to monitor the product movements.
- It will provide real time visibility into stock levels, locations and item details.
- It will help you to stay aware of different levels of inventory.
- It will enhance capabilities to efficiently manage relationships with suppliers.

Wrapping Up

Finance teams can use accounting software to improve productivity to build a successful system that will support high level judgment-based accounting strategy. This will provide access to the skillset that already exist in your team members but are not used efficiently.

With the touch of the right technology, right people, friendly partnerships and productive accounting software you can definitely boost up your business productivity.

How Accounting Software Improves Productivity