What Modules Are Essential When Buying Accounting Software?

There are many different accounting software products available in the open market. Choosing the right package can be a confusing and daunting task if you are uncertain about what you should be looking for. With so many accounting software products to choose from the question of business requirements is becoming ever more important. Any business that is looking to invest in accounting software needs to think about what their requirements are before starting to look at specific products. By doing this thinking the small business owners give themselves a better chance of getting a product that matches their business requirements and cost budget. Unfortunately many owners of small businesses are unaware of their business requirements and more specifically the makings of an accounting software system.

This article is designed to describe the core and non-core modules that make up an accounting software solution. This will help you start to think about how accounting software products are made and which modules you require and which you don’t.

What are the Core Accounting Software Modules:

General Ledger – This is the part of the accounting software that creates the company books. It effectively takes all of the financial activity of the business and summarises into a simple to understand set of accounts. This is very valuable for quick and simple end year financial reporting.

Accounts Payable – this is the opposite of accounts receivable. It is an accounting module that allows the user to track transactions to suppliers for goods and services purchased. In order to manage finances well it is critical that outgoings are checked and well managed.

Accounts Receivable – in essence this tracks money that is payable to you and helps you process the receipt of payment. This type of module is essential in any business taking money. As cash flow is the life blood of any small business collecting owed money is the most essential part of business. Hence this accounting modules importance!

Inventory System – Gives general information of the quantity of stocks within the business and where they should be located. I would say this is only core for a retail business or businesses in based on selling physical stock. (If you are a services business or an electronic trader this module is not required.)

What are the Non-Core Accounting Software Modules:

Payroll – This accounting module allows a business to be able to successfully manage the payment management to staff within the business. Everything from wages, bonuses, holidays, time in lieu is able to be dealt with quickly and effectively in one system. This is obviously very useful for businesses with a large scale employee base.

Electronic Banking – This gives you the ability to link you accounting software solution to your business bank account. This allows you to have up to the minute accurate financial information in your accounting software but also allows you to make financial changes in one place

Fixed Assets – This acts as a register for you to store all of your fixed assets and equipment. This module simply allows you to keep on top of what assets you have within your business and what equipment is used.

Time Billing – Able to track the time spent and expenses occurred on each client. Very useful for service related businesses that need to keep a tight grip on time spent per client.

Job Costing – This is very useful for project based businesses. It allows you to store all of the expenses, income and profitability of all jobs taken on by the business. It can be very difficult when a business is taking on several multiple jobs at any one time to separate the profitability of each job. But it is very important to do so in order to ensure that the business continues to take on profitable business and limit non profitable business.

It goes without saying that the more of these modules an accounting software system has the more expensive it will be. It is therefore very important to ensure that you only purchase an accounting software solution that fits your business. There is no point paying for payroll within your accounting software solution if you have no staff or inventory management if you are a service trader. Think carefully about both your business requirements and the modules that you require and you will get a good product that will drive value in your business.

Accounting Software – How It Can Benefit You

Whether you are a new or well established business, maintaining your accounts can be a challenging job for any business. When it comes to accounts, many businesses entrust everything to an account. However by using an accounting software package as well you can save money and time that could be spent productively on other aspects of your business.

Choosing the right package however to do this job can often appear to be a difficult task and not all businesses will benefit from having accounting software. For those businesses that do benefit, having accounting software makes your accounts process very simple.

The detailed requirements that you will need within your accounts package depends on the type of business you have and how you run it. When choosing the right accounting software for your business it involves you deciding on your requirements and then looking for an accounts package that can meet all your overall and detailed requirements. The requirements that each accounting software have all vary, which is why it is important to consider what you will want out of your accounting software package. Some of the requirements that you may want from your accounting software include the following:

o Basic bookkeeping – this will document all your sales and purchasing as well as invoicing

o VAT calculations – allows you to keep track of VAT and to calculate your VAT

o Payroll processing – you should consider this as part of your accounting software if you have more than three employees. The payroll function calculates PAYE (pay as you earn) as well as your weekly/monthly National Insurance contributions.

o Production of management information and decision support – important if you need to prepare internal management reports periodically.

o Invoicing – every accounting software package should provide an invoicing function. Most provide an option of tailoring your invoices to your desired appearance.

o Credit control – this option highlights where customers have exceeded their limits and provides statements to chase them.

o Compatibility – you should think about whether your chosen accounting software is compatible with any other accounting systems, including the one that is used by your accountant.

o Stock control – if your business sells products then stock control is an important function to ensure that you have enough products in stock and so that you know what has been sold.

Accounting Software is application software that records and processes accounting transactions. Most accounting software packages consist of various modules/sections. The main core modules of most accounting software packages are as follows:

o Accounts receivable – this aspect of accounting software deals with the billing of customers for the use of products or services. It is where the company enters that money has been received.

o Accounts payable – this part of your accounting software is used when you receive an invoice. You add the invoice to this file and remove it when you have paid it. These invoices cover money that is owed to people such as suppliers.

o General ledger – this is the summary of all of the transactions that occur in the company. General
ledger can also be known as nominal ledger and is the main accounting record of a business.

o Billing – when a business invoices its clients/customers

o Stock/Inventory – it could be important to your business to keep track of all the material/stock that you have within your business. By having stock/inventory lists it allows your business to keep control of its inventory.

o Purchase Order – when your business orders inventory you will be sent a purchase order, which is a document stating the type, quantity and agreed price of the inventory.

o Sales Order – order received by a business from a customer. These sales orders are recorded so that a business knows how much inventory it has. These sales orders may be for a product or for a service.

Accounting software could be just what your business needs but choosing the right one is highly important to ensure that you are getting exactly what you need from your accounting software.

Processing Your Data Faster With Accounting Software

Accounting software is highly recommended for the people who are working in business area. As basic information, the software has the ability to record and also to process accounting transactions in the functional modules. Another function of the software is as accounting information system. Some companies have built their own accounting software. However, you can also buy the software from the third party. The software can also be the combination between the third party applications and local modification. There are various options available in different complexity and cost.

There are many options of accounting software which you can choose according to your needs and desires. It is composed of various modules, including core modules and non core modules. The examples of core modules are accounts receivable, accounts payable, general ledger, billing, sales order, and much more. The accounts receivable is the best software for entering the money received data. For the company who enters its bill and pays the money it owes, they should get accounts payable. You may also need general ledger as the company’s books. To control its inventory, you should get stock or inventory software.

The non core modules are also available in many types. They are including debt collection, expense, payroll, electronic payment, timesheet, and much more. The debt collection helps the company to tracks the attempts to collect the overdue bills. The electronic payment will help you to processing. You also need reports software where the company will be able to print out the data.

Before purchasing any accounting software, you should consider some important factors business. It needs to be done so you can find the appropriate software for your business operation. The main factor which should be considered is whether the software can be used easily or not. Accounting is complicated already. Your workers must not want software which is complicated to operate. Do not buy software which needs a long time to master it.

Another aspect which you should consider is the flexibility of the software. It is better for you to check whether the software has modules which you can add later. A module will be added when your business grows is payroll accounting. Your accounting software should meet the bank support. If your software can download transactions from your bank, you can save more time.

The next aspect of your accounting software which is important is online or desktop software. When you are using the online software, you will need internet browser. Just ensure that you run the safe internet browser. Online software is more convenient for accessing accounting data and records from multiple computers. You also need to consider the numbers of the people who use it. Some workers need to have full access to all functions but some only need the access to data entry areas. Before installing the full version software, you may try the free trial of the software.