It is no longer uncommon for businesses and organisations to use accounting software in Singapore to manage their finances. Unlike a decade or so ago when accounting tasks were mostly done manually, these days almost every establishment makes use of software to ensure that all their transactions are recorded and monitored.
Accounting software in a nutshell
Accounting software is an application that allows its users to perform bookkeeping and accounting tasks as well as entering business transactions. Businesses can store their financial data within the accounting software and retrieve them when needed.
But that is not all that accounting software can do. It has many other functions that make even complicated accounting tasks easy for its users.
Key functions of accounting software
Accounting software protects your company’s financial information. It helps protect financial information from people who should not have access to it.
This can be done by providing all users in the company with their own usernames and passwords for specific accounting areas. For example, if you have one person in charge of expenses, another in charge of invoices and another in charge of payroll, each of them can only access the areas that have been allocated to them.
This will prevent employees from misusing the company’s financial information for their personal gains, at the expense of the company’s own interests and benefits.
Internal audit trails are provided by good accounting software applications. This allows another user in the company to check the transactions that someone else has inputted.
By detailing each step of the transaction, the users can trace back how and when the entries were made and by who. Such an audit trail makes it simple to fix errors. This feature is incorporated in some accounting software and it can be turned on or off based on user preference.
A clear audit trail will also allow the company to operate more efficiently and effectively.
Accounting software’s report function can provide you with a bird’s eye view of your business. Depending on your or your business needs, you can utilise the report function to either summarise data or be thorough. The report functionalities can be customised to meet its users’ needs.
For example, when your auditor requests a detailed income statement for the year-end audit, you can quickly customise your report to show all the line items related to the profit or loss account and download it to send to the auditor.
On the other hand, if you just want to show your creditors a basic income statement based on their requests, you can adjust the settings accordingly and present only information that may be useful to them.
Accounting software can also assist you in analysing your company’s financial situation. You may establish annual budgets, assess a product’s profitability, understand the costs of running your company, plan for expansion and make adjustments to your business plan as needed by evaluating the information gained from your accounting software.
Accounting software in Singapore has become a necessity for both profit and non-profit organisations. The accuracy of accounting software not only makes auditing easier, but more importantly, allows users to enjoy financial mobility without the threat of losing or under-utilising their funds.