Managing a business is challenging and complicated. Whatever the type of business, business management requires a high level of accuracy. Business owners are expected to be able to know about simple financial statements, how to market, produce, sell, and various other things related to business.
Accuracy in managing a business is one thing that must be considered. Including when recording every business transaction that occurs. Faithful business transactions are recorded carefully and precisely so that errors do not occur during financial reporting. Because the financial statements are important documents of the company, the process must also be detailed and detailed. Including one of them is a detailed record of business transactions that occur.
At present, more and more businesses with small and medium scale are emerging. This means more and more business owners are also trying to manage finances. Along with the development of technology, more and more accounting software has also emerged. This accounting software is used to help the accounting tasks of a business. Of course accounting software is different from conventional accounting processes.
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Differences in Conventional Accounting and Accounting Software
The differences between conventional accounting and accounting software include:
a. Conventional Accounting:
- Conventional accounting makes all your work done from the recording process to the summary that is done purely by the hands and minds of humans. All recorded by humans with a manual recording process.
- Humans who play an important role in carrying out the conventional accounting process.
- Accuracy and timeliness is needed to run the financial calculation process with conventional accounting.
- Accuracy and timeliness in recording financial data and also the presentation of financial statements are required in detail in conventional accounting.
- There needs to be a separation between parties who prepare diaries, ledgers and accounting journals. So that more experts are needed in this matter.
b. Accounting Software
- In the software-based accounting process, involving human hands in the recording of transactions or recording business documents carried out to enter data into the computer.
- With software-based accounting, accuracy and timeliness are needed for recording until the presentation of information and financial reports is sufficiently guaranteed by the computer. Because the software will process every data that has been entered.
- Computer software used in processing accounting activities is quite reliable. Hardware reliability, GIGO (Garbage In Garbage Out) Issue and appears in a computerized system.
Actually, software based accounting does not require very sophisticated software and very smart machines. Ms Excel which is available on every computer is enough to be a simple accounting software. With Microsoft Excel, business owners can also do many things. Starting from recording transaction data to processing financial statements.
Benefits of Using Accounting Software for Business
With so many small and medium scale businesses today, more and more business owners are always looking for alternatives so they can manage their business smoothly and develop their business to become more successful. It’s just that, sometimes business owners experience problems with the accounting process. Not many business owners understand the accounting process in a business. But with accounting software, business owners don’t need to worry anymore.
Here are the benefits of using for business:
- You no longer need to mess around with accounting calculation formulas. Because in accounting software there is already a system that will calculate the data presented automatically. So that the business accounting process is faster and easier.
- Allocate time for more important things. With the accounting process that has been handled by accounting software, surely you have more time to deal with other things in the business. You can focus more on the product marketing process, market research, even developing new products to improve company performance.
- Does not require experts. To run accounting software, you don’t need to hire experts to do the work. Accounting software will work with a reliable system so you only have to observe.
- Save company costs. By using accounting software, you no longer need to hire experts. This way, you can save on company expenses to hire experts. Even the allocation of funds for experts you can use for other purposes to support your business.
- Minimize errors. If conventional accounting is done manually, which records each transaction and counts one by one, accounting software is different in terms of the process. Recording transactions manually can result in possible errors. Because every record requires high accuracy. But if you use accounting software, errors that occur due to human error will be less. Because accounting software has been designed to record data and process it automatically and accurately.
- Secure data. By using accounting software, your company’s data will be safe. Make sure only certain people have access to your business accounting software to avoid cheating.
- Can be accessed anywhere and anytime. By using cloud server technology, of course, accounting software can be accessed anytime, anywhere. You don’t need to wait for the office to see your company’s financial condition. even every financial information is updated in real time by accounting software. So you will be able to monitor the condition of the company easily.
There are so many benefits provided by accounting software for a business. In the digital era like now, technologists facilitate human work by providing solutions to every problem experienced by humans.
Another advantage for businesses that use accounting software is.
- Fast business decision making. Because financial reports can be accessed from anywhere and at any time, business owners are more responsive to decision making. No need to calculate manually first because accounting software provides real time data and is always updated.
- More organized inventory management . Accounting software also provides an inventory feature, where users can enter company inventory data. With this feature, you can monitor inventory management and manage inventory more regularly.
- Process stock taking easily. With the stock inventory feature, you can find out the truth of the financial statements. Ensuring compatibility, seeing fraud and this can be obtained from the stock taking process.
- Record every transaction. A feature that greatly benefits business owners is recording transactions. Human errors often make mistakes in recording transactions, making financial reporting mistakes. Accounting software is able to reduce these errors by recording detailed and precise transactions.
- Financial reports can be processed anywhere and anytime. Because business transaction data has been entered into the software, of course you can process it into a financial report and print it anytime, anywhere.
