Accounting is an ordered system for collecting, registering, and summarizing information in monetary terms about the state of the property, the obligations of an organization, and their changes. It is usually produced through serious documentary accounting of all business transactions.
As for the main task of any accounting service, it is supposed to help managers and accountants by getting rid of routine operations and ensuring against errors. We offer you a brief description of popular market solutions. If you are searching for robust accounting software for small business. We will tell you how to choose and what details you should take into account if you plan to develop such software yourself.
The main accounting task
Strictly speaking, accounting should know the sum of everything that is in the company and the quantity, if it can be calculated. Accounting is the accounting of everything in the company that can be counted in money and quantity.
The generally recognized main task of accounting is the formation of complete and reliable information about the activities of the enterprise and its property status for users of financial statements.
In order to carry out its main task effectively, selecting the most effective ERP system for accounting needs is crucial. An Enterprise Resource Planning (ERP) system integrates various software modules, including accounting, into a unified system that can be used by all departments within an organization. This allows for better data sharing, improved accuracy and efficiency, and overall streamlining of business processes.
Other tasks include the following:
- ensuring the availability of primary documentation on each business operation, timely processing of primary documents;
- record the existence and movement of all assets of the enterprise;
- accounting of payments with counterparties and cash flow;
- accounting of settlements with founders and creditors;
- accounting, analysis, and monitoring of wages;
- accounting of income, expenses, results of activity, own capital, provision of future expenses and payments, expenses of future periods of the enterprise;
- development of financial reporting focused on the needs of external users;
- control over preservation, rational use of the property of an enterprise.
As well, the most significant reason why it is necessary to keep the company’s accounting records according to the generally accepted procedure is that this requirement is enshrined in law. Therefore, there is no choice, if an entrepreneur wants to work, he must conduct his activities in accordance with the letter of the law.
Accounting allows showing a full picture of the dynamics of activity of the organization and data on property status. These data are necessary not only for the establishment of facts and reporting tax because they can be used to make forecasts for the future.
Therefore, accounting helps to solve the following tasks of the business manager and owner:
- determination of reserves of various property assets of the company to maintain its stable financial condition;
- regular and timely provision of objective, structured and accurate economic information to management;
- minimization of risks that could lead to negative economic outcomes;
- implementation of the control function (both from the state and other external parties).
Objects of accounting
The main objects of accounting are considered:
- agreements of the entrepreneur they are the same obligations;
- property assets belonging to a commercial organization;
- transactions that are carried out in the course of conducting business activities.
Property or property assets, in turn, consist of current and noncurrent assets. The obligations of the organization include wages, bills payable, taxes payable, etc.
What to consider when choosing an accounting software
When it comes to accounting, you need a platform that can offer you all the tools you need in one package. For example, gearheart.io knows how to develop the best accounting software for small businesses.
The best accounting software should perform the following functions:
- Track incoming and outgoing money. You want to know what customers owe you and what you owe to potential suppliers or other business partners.
- Support payment gateways. Most online companies rely on third-party payment gateways to process payments on orders.
- Have banking integration. You probably don’t keep your money under the pillow, and therefore the best online accounting services should provide a wide range of banking integrations.
- Give access to an accountant. If you do not keep your accounting records, the accounting software should give your accountant access to view your financial data.
- Be automated. Most of us would prefer to keep the manual input as low as possible, so let your accounting program do the work.
- Be tax compliant. Especially if you sell products and services with different tax rates, you should make sure that your accounting service can from the beginning to the end take care of the preparation of taxes and reports.
- Provide report writing services. Since the main task of accounting software is to help you understand the financial state of your business, choose one that provides the right type of reporting.
To better understand what you need from accounting software, try to answer the following questions:
- How many customers do you have now? How many clients do you want to have in 2 years?
- How do you collect payments from your customers? Do you use only one payment gateway or various options (bank transfer, bank and credit card, etc. )?
- How much can you afford to pay?
- Do you want to pay only a lump sum for the accounting software license or are you ready to subscribe to the monthly subscription?
- How much time are you willing to spend in accounting every week? Do you want to automate the process as much as possible or will you need to analyze various reports and forecasts often?
It is also important to talk to your accountant about what kind of accounting service he would recommend. There’s nothing worse than buying an expensive one-year subscription to something you don’t need.
Wrapping it up
There are many accounting programs. They can be both paid multifunction software and free programs with limited features. There are also online services that allow accounting through a browser. Yet, the best way is to get a custom solution that fully fits the requirements of your business niche and your company. Luckily, gearheart.io can help you with this. This company is a perfect example of how you can get top-notch accounting software for small businesses. Be sure that it will be designed to meet the needs of your company precisely.
As well, when choosing a program for accounting, take into account the following factors:
- the organizational and legal form;
- the tax system used;
- the number of employees on the staff;
- the size of the business;
- the scope of activities.