Accounting apps are a type of computer software that is used by business owners or accounting and bookkeeping professionals to manage and perform a variety of accounting tasks. The most basic accounting apps, often referred to as “personal finance managers”, are single entry programs that automate tasks like record keeping and check writing. Double entry accounting apps incorporate functions for accounts payable, accounts receivable and general ledgers. More advanced programs also include functions for inventory, invoicing, payroll and fixed assets. Several of the higher end accounting systems on the market even support time billing and sales analysis.
Features Available in Accounting Apps
You may be thinking that accounting apps are all basically the same, but they’re not. While the primary function is similar, some have several other features, functions, and services built in as well. Some of the most indispensable features include the following.
Businesses of all sizes need to have their financials under control if they want to succeed, and the best way to ensure this is to use an efficient and secure accounting app. Financial data can be lost or tampered with, releasing important financial secrets, profits and sales data. If the damage is bad enough, it can be devastating for the company.
Reporting and analysis
In today’s complex business environment, information is power. This is why the accounting apps you consider should include great analysis and reporting features. Apart from helping business owners obtain insight into important financial activities, reporting and analysis capabilities help businesses conform to industry and government regulations.
Look for an accounting app that’s scalable, meaning that it can be upgraded to, or already accommodates, a substantial growth in the number of users, transactions, and financial data. Before you sign up for an accounting app, make sure to have the vendor confirm that they have you covered when it comes to scalability.
Advantages of Accounting Apps
Accuracy is critical for all business related computations because mistakes have the potential of leading to substantial losses or other problems. Accounting apps can prevent you from making these types of mistakes. Accounting programs also improve workflow, improve record organization, and the right one can be modified to expand as the business grows. These apps make it possible for you to see finances at a glance and are developed to suit one purpose, to manage your financial tasks.
Disadvantages of Using Accounting Apps
A disadvantage of using accounting apps is the learning curve, which can feel daunting. But using the app can far outweigh the potential for mistakes for business owners who are still trying to do the bookkeeping manually.
Accounting apps have hundreds of features that can benefit your business and workflow. That said, nothing is a substitute for accurate and systematic bookkeeping. Let us help you get your financial side of the house in order. We’ll put your mind at ease.