Implementing an accounting system in the right fashion for your business can be a difficult thing to do. Accounting often involves a number of redundant tasks that can immediately benefit from the use of even the simplest of digital tools. However, it pays to take all aspects of your accounting process into account when choosing a good system to utilize. Every single component of your chosen accounting system matters and can drastically influence your workflow.

A proper accounting system incorporates several aspects of your accounting process into its primary body of utilities – streamlining them and eliminating unneeded redundancies.

To get the absolute best software that you can for accurate management of such processes, you need to have a clear idea of what these processes actually are. Once you know what to look for, you will be able to acquire the perfect system for your business’s accounting needs. This article will discuss the aspects of the accounting process that definitely need to be covered in your chosen system.   

Accounts Receivable

Keeping track of all incoming revenue can become a bit of a convoluted task without accounting software. Simple, efficient management of your accounts receivable is one of the prominent perks of a good accounting system. Through tools fitted for this purpose you can accurately track all inbound revenue streams in real time and measure invoice payments as needed. Your income can be automatically documented and the storage of crucial details needed for tax files can be simplified in the same stroke.

Funds can even be directed to accounts as per your preferences or requirements through automation in many cases. Of course, the precise features you will have access to depend primarily on your chosen platform.

Accounts Payable

Accounts payable receive the same level of attention as accounts receivable – typically having the option of appearing in the same useful ledger for quick assessment. Expenses can get tricky to track as your business expands. Thankfully, accounts payable features are now usually outfitted with all of the essentials needed to track outbound funds and more. Automation, again, plays a key role with software-based accounts payable functions – contributing to the immediate management of all outbound funds in accordance with your own specifications.

Most platforms will include integration options to get your data into your preferred analytical services too (this includes your accounts receivable, of course) so there is plenty more power to consider from such a seemingly humble function. 

Payroll

Keeping track of your company’s payroll involves plenty of time-consuming tasks and endless redundancies that beg for optimization through specialized software. Payroll management by way of a dedicated digital platform provides you with the tools you need to quickly (or automatically) assess, regulate and modify your company’s employee salaries. Real time management is usually a given with such systems – allowing for instant modification adherence in your scheduled payments.

Automation can help to speed the payroll process up immensely and individual employees can be paid through a good accounting system’s payroll management tool in any order, timeframe or format that you feel is best. Depending on your choices for account linking, some platforms can even pull necessary payment funds from multiple sources.

Inventory

A retail or product-based business can hardly be a success without an inventory management solution and having such a solution built directly into your accounting software makes for an extremely efficient workflow in this regard. Platforms like Anaplan offer all sorts of useful integrations along these lines. Anaplan, in particular, blends resource management and accounting functions seamlessly through the use of multiple integrated apps.

Reporting

Reports offer you a clear view of your accounting endeavors and your company’s financial status. Proper reporting gives you a better view of your business’s performance – offering you clear, actionable financial data in a simple, exportable format.

Through the use of bundled financial reporting services such as those on offer from Accountingseed, you can even create your own custom reporting templates. Personalized financial reports and budget analysis options are attainable through this particular platform as well. Coupled with integration options, reporting can be a pretty powerful feature to have access to.

The accounting functions mentioned above are common constituents of a solid accounting system. These functions allow for plenty of transparency in regards to the entire accounting process and can give you some excellent insight into your company’s financial status.

Managing your business’s accounting efforts tends to boil down to keeping track of revenue as it moves through the company’s infrastructure, be it in the form of literal cash or that of inventory and products that are destined to be sold. A well-designed accounting system makes for a great means of managing this internal flow of value and should definitely be incorporated into your workflow as soon as possible.

A couple of excellent accounting systems were mentioned in this article and they can form a great starting place for research into such systems if you are particularly interested in acquiring one.