Accounting software is a tool that assists in a business’s accounting and bookkeeping tasks. It collects and stores financial data to use in performing business transactions. Accounting software manages transactions of a business which includes asset, expense and revenue management, accounts receivable and payable, sub ledger accounting, reporting and analytics.
These days, accounting software is connected to the internet and comes with Cloud services. This means businesses can connect from any devices, such as a laptop or smartphone, to access this data anywhere. The software also automatically updates when it’s connected to the internet.
On-Premise or Cloud-Based
When choosing accounting software, you might be wondering if you should get yourself an on-premise or cloud-based software. Both of these options have their advantages, but consider some options that your business might need in the long run.
Accounting software has evolved so much over the past decades which brings us the cloud-based software we know today. It became affordable, easily acquired and scalable according to the business’ growth and needs.
Read More- The Evolution of Accounting Software: From Spreadsheets to AI-Powered Solutions
Benefits of Accounting Software
1. Automate Processes
Automation greatly benefits businesses when it comes to tax payments and payroll processes. You can schedule bank payments and direct deposits for accounts payable, enter data into tax forms and electronically file them with the Inland Revenue Board of Malaysia (IRBM), calculate hours and taxes, process wages, and pay payroll taxes for payroll.
This saves time, enhances accounting accuracy, and allows for the timely identification of errors with notifications. Additionally, it enables accounting and financial teams to redirect their focus towards higher-value tasks.
2. Improve Security
Accounting software uses encryption alongside additional security measures to safeguard data and verify user identities. This is important for cloud-based systems, where data is stored on external servers. It ensures key information remains secure even if a mobile device is lost or stolen, or in instances of fire or other catastrophes.
3. Tax Compliant
Manually handling, labelling, verifying, and submitting financial information in documents and spreadsheets is not only time-consuming but also prone to mistakes. The constant evolution of guidelines, regulations, and tax frameworks only adds to the frustration.
Accounting software can streamline and ease these tasks, generating precise financial reports via templates that are regularly updated to ensure compliance with the IRBM‘s tax regulations. Automating these processes can significantly reduce the time and hassle associated with preparing quarterly tax estimates and annual returns.
4. Remote Access
Because of the pandemic, remote work has become a norm in the workforce which pushed the accounting departments to include cloud-based accounting systems. This allows real-time data and information to be accessible to authorised employees at anytime, anywhere and on any device. These features improve efficiency, accuracy, collaboration and decision-making.
5. Affordability
Cloud-based accounting software sends data over the internet to remote servers for processing, making it accessible to business managers. This approach saves costs, time, and resources by freeing up computing space and allowing IT staff to focus on other tasks. Since the software is cloud-based, automatic updates eliminate the need for new license fees, hardware, system maintenance, and integration costs.
The Future of Accounting Software
Cloud accounting is no longer a future concept; it’s something that businesses need now to avoid operating at a competitive disadvantage. The benefits of cloud accounting software are similar to other cloud software, but they are even more crucial because financials form the basis for everything a business does. Running a company without accurate and real-time financial information is like driving a car without a speedometer or fuel gauge. That’s why a cloud-based accounting system is such a critical investment for businesses today.
Optimize Your Financial Management With Our Accounting Software
If you’re looking for cloud-based accounting software, you can contact Info-Tech at [email protected], call +603 6050 0333 or WhatsApp at +60 1890 14671.