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| ACCOUNTING ON COMPUTERS - BETTER EFFICIENCY AND COST EFFECTIVENESS | | |
Manual Accounting processes have their place in all business systems but
have notable limitations. Typically they are labor intensive because they
are often accompanied by paper documents and physical flow of information.
Furthermore, every new transaction introduced into the process is a fresh
event and relies heavily on the internal control environment for successful
completion. Momentary lapses of control are inevitable in even the best run
businesses and even a single significant failure can have dire consequences.
Repairing these process errors can be time consuming and costly. This is
where automation comes to the rescue of effectively-run businesses.
Another very important reason why many businesses have embarked on
automation is primarily for statutory compliance. In an evolving business
environment like India where financial and economic parameters have not
matured completely, keeping up with changing compliance norms is best done
through automated means, like periodic software updates.
The challenges to successfully choosing, installing and implementing new
accounting software are many. But so are the opportunities to gain greater
control of your organization’s financial affairs, to make better decisions,
and to improve cash flow, to name a few. Properly installed and implemented
accounting software can contribute many benefits to your business,
including:
Better decision-making capabilities
Sound accounting software can provide a quick and a real-time overview of
your organization’s present financial status, as well as the detailed
reports and other data necessary for long-term strategic planning.
Improved cash flow
Cash management is essential for all businesses. Integrated billing,
inventory, accounts receivable and accounts payable allow you to manage that
valuable cash more easily and efficiently.
Accurate information availability
With fully integrated accounting software, you’ll not only have more
information at your fingertips, you’ll have more accurate information.
Unlike a manual accounting system, where a great deal of time is spent
cross-checking figures recorded in different ledgers (and where the
potential for errors dramatically increases) – in a good computerized
accounting system, information is entered only once and is used throughout
the system.
Better control
Integrated accounting software provides real-time access to your
organization’s critical financial information. This provides you with
greater control and the ability to manage the components of your business
more efficiently.
Time savings in managing finances and inventory
Automation reduces the time spent on managing the financial and stock
records in two ways. First, the time spent on entering data on computers is
far less than writing the data manually in separate accounts and inventory
registers. Secondly, computerization reduces errors and therefore increases
efficiency, especially while performing frequently repeated tasks like
consolidating bank account statements with the company’s books of accounts.
Easier and simplified functions
As technology progresses, advanced financial accounting software packages
are being introduced to make lives for businessmen and professionals far
simpler. The latest software is also equipped with features like calculating
VAT, Fringe Benefit Tax and Excise duty for Traders, and also the option to
file these returns electronically wherever possible at the click of a
button.
Grows with your business
The right accounting software can help you as your organization grows:
expanding as your business expands, allowing for additional users and
offering the kinds of reports and other business intelligence data required.
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