Benefits of accounting software
Accounting software is crucial in helping organizations run their day-to-day business processes. It allows business leaders to keep their finger on the pulse of their company’s financial health.
General ledger (GL) and subledger
Modern accounting software is designed to allow both journal entries and automated subledger entries to automatically populate the general ledger, allowing CFOs and controllers to have a real-time view of their financial data.
Accounts payable (AR) and accounts receivable (AR)
A complete accounting software solution does more than just basic accounting. It helps organizations to reduce records redundancy, deliver better budgeting and forecasting, and enable a thorough and properly categorized expense management. In addition, it provides seamless integration into banking systems, enables more accurate audits, and keeps detailed tracking records of all assets and liabilities.
The cash management capabilities in accounting software provide accurate cash positions by automatically reconciling cash transactions to bank statements. These capabilities also enable companies to make timely investing, borrowing, and other cash decisions with automated cash forecasting based on payables, receivables, payroll subledgers, and external transactions.
A modern accounting solution helps you manage the entire financial cycle of assets, including acquisition, capitalization, depreciation, and retirement. Having this complete visibility helps businesses deliver accurate financial statements related to appreciation and depreciation.
Risk management and compliance
The best defense an organization has against fraud and unauthorized user access is accounting software with built-in security, risk management, and audit controls. These internal controls and separation of duties (SoD) help you stay compliant with Sarbanes-Oxley (SOX) regulations and give your enterprise a secure, single source of truth for data.
Managing collections involving customers is an important accounting software capability. With comprehensive collections management, it is easier to rank customers, establish collection strategies, manage collection payments, and initiate late-stage collections for bankrupt customers.
Embedded revenue management capabilities in accounting software automate the process of using analytics to maximize revenue and profitability.
Reporting and analytics
A complete accounting system not only records financial transactions, it also includes reporting and analytics capabilities. These prebuilt dashboards help finance leaders make sense of their organization’s financial health and drill down for more detailed information. These dashboards measure critical financial KPIs in real time, including current ratio, quick ratio, debt-to-equity ratio, net working capital, and inventory turnover—just to name a few.