Accounting software is a software that processes and record accounting transactions like account payable, account receivable, payroll and trial balance. It can be developed by the organization using it or may be purchased from a third- party.
Accounting has been packaged today that the accounting software not only records financial transactions and produce accounting reports, but has functionality for managerial decision making aimed at gaining competitive advantage.
Accounting Software plays an important role on the growth of small businesses. the Use of accounting softwares should be adopted fully to bring about increased operational and administrative efficiencies, cost savings, enhanced internal communication, expand customer base, increase sales, better customer service, help implement business strategy.
Small business accounting software has made a giant leap in power, speed, sophistication and flexibility in recent years. Over the years, software developers have been adding more innovative features to finance packages, such as web interfaces and better integration with supply chain and other applications, and they have also make products that will be useable for non-accountants.”
The SME sector plays a significant role in the national economies. Small businesses remain an important part of the business environment. Accounting software for specific business niche are also available in the market. Small businesses are often placed in the situation of knowing that IT can support their businesses in some way, but they lack the expertise and resources to know how it can be effectively applied.
However, small businesses are at climax in terms of adopting a computer system to manage their accounts. Their confusion is, which one of the ever-increasing brands in the marketplace is suitable for them? If they already have one, should they upgrade it to a new system? Do they need an external consultant? Which consultant they should approach? Can they afford? Are there any risks?
In order to survive in this IT era, SME owners and managers need updated, accurate and timely accounting information. Accounting systems are responsible for monitoring and analysing the financial condition of firms, preparation of documents necessary for tax purposes, providing information to support the many other organizational functions such as production, marketing, human resource management, and strategic planning. Without such a system it will be very difficult for SMEs to determine performance, identify customer and supplier account balances and forecast future performance of the organisation.
It is recommended that SMEs adhere to good and standard accounting principles in their operations. The adoption of e-accounting would ensure proper accounting practices as good accounting practices have several implications for entrepreneurs and SME managers. Good accounting and control systems could assist in evaluating the performance of the organisation and its managers. SMEs with proper books of accounts are often capable of attracting external financing easily than those with no good Management Policy and Practice records.
SMEs that maintain good accounting and management information tend to be viewed favourably by finance providers.
DIFFERENT ACCOUNTING SOFTWARES FOR SMALL MEDIUM BUSINESSES
- Sage Business Cloud Accounting
Sage Business Cloud Accounting formally called Sage One Accounting is one of the best accounting software for small business. It is an online accounting software for small medium businesses which some are already on the platform. It is a cloud based accounting software that stores data in the cloud and makes it accessible from anywhere in the world even on mobile devices.
- Sage One Accounting
Sage one is another accounting platform that you can use to perform so many task apart from organising basic accounting ledgers. It has a payroll feature, invoice section, even training materials to get started. Sage one has serve no less than 3million businesses worldwide
With the Sage One Accounting platform, you can perform so much more tasks than organising basic accounting ledgers. You can go on to take advantage of the payroll feature, use the invoicing section and even get numerous training materials to get you started. The best thing about Sage One is it’s available across multiple platforms and you can use it on any device; Windows, Apple (Mac & iOS) or Android
QuickBooks helps keeps tracks of all the money coming in an going out of your business. That way, you can determine what luxurious spending you should cut and what channels to pump more money in.
- FreshBooks Accounting
FreshBooks is one of the best accounting software. It automates your invoicing and help you with following up on clients. It is accessible from any device and one of the best accounting software for Mac.
Sap is an accounting software that helps keep inventory, raising product orders and reservation, managing/manipulation of stock which can be reviewed and customized to fit the need of your company. It allows you account for physical goods apart from money.
NetSuite is an accounting software which makes everything happening across the organization visible which helps to make faster decision. It has an incredible interface. The application has all it takes to handle complexities involved with dad-day activities of the business
This is a cloud-based solutions which offers other features like contract management, fund and project accounting, inventory management, financial reporting and consolidation, and so much more apart your cash inflows and outflows. It keeps everyone updated in the organization updated and it backs up information on a secure and dedicated cloud server. This software has a high level of security.