Year-end is supposed to be the most relaxing time of the year, but it is often riddled with accounting processes that need to be taken care of for businesses. Managing finances is in itself a very daunting task, and year-end closing books is even more intimidating – especially for new owners.
Accounting software comes to the rescue and provides the much-needed solutions for streamlined accounting as well as smooth year-end closing. Before we look at how accounting software helps with year-end close, let’s first talk about what accounting software is!
What is accounting software?
Accounting software, in simple terms, is a fundamental application that helps you record the flow of money for your entire business. This information is then extremely helpful at the time of reviewing and auditing. Accounting software is the primary tool for staying on top of the business’s financial health and ensuring the legal compliances are met. Most of the tasks associated with accounting can be seamlessly automated using accounting software, so that you get to focus more on tasks that help you reach business goals.
Therefore, good accounting software is a must for business owners who want to move in the direction of success. Accounting indeed involves a lot of mundane tasks, and manually doing it means spending a lot of effort unnecessarily, albeit for an important task. In such a situation, when the task can neither be left alone nor done manually, the best way out is to automate it – and accounting software does precisely that. Also check these Payboy’s accounting software recommendation.
In doing so, it provides numerous benefits and features, all of which go in to help your business achieve an easier year-end close. These benefits stay around the year, and accounting is a task that is not done only at year-end. For the best year-end close, the approach should be to have a healthy accounting throughout the year. In that sense, accounting software is the best, both for year-round accounting and for simplifying year-end close. With that said, let’s look at some such features of accounting software to help you with the smoother financial closing of the year.
- Gain control of your professional finances: Managing finances is difficult, whether personal or professional. However, with personal, things can be (but shouldn’t be) taken lightly. When it comes to business finances, you are bound with many legalities and compliances, among other things. All of that calls for a more sophisticated approach which begins by gaining complete control of your finances. Accounting software helps you achieve that by keeping all the related data in a centralised location – providing you an objective, complete view of the financial health of your business.
- Automate sending out and paying invoices: Cash flow management is one struggle that haunts entrepreneurs during the year-end closing. With accounting software, you can automate both sending and paying your invoices. What’s more – you can have a clear forecast of how the cash flows look, so that you can take actions preemptively. Accounting software also gives you the ability to send automated and customisable reminders to the clients – so that you don’t need to manually do the chasing.
- Simplified reconciling and good standing with the IRS: One important feature of accounting software that comes in particularly handy during year-end close is the ability to connect with your bank accounts. With that ability, you get to access all your bank statements directly in front of the software dashboard without having to do any heavy lifting. With all the documents at your disposal, you can easily perform and reconcile transactions and ensure there is no error. All of this adds on to help in taxation processes, too. Today’s accounting software can automatically calculate sales taxes and create returns for you, depending on the area where you operate and the taxation rules there.
- Reporting and analysis: Reporting is an important part of the accounting process – especially during the year-end. With accounting software, you can automatically create reports and check forecasts. Further, you can customise your reports as per your needs and use different formats – from charts, graphs, tables, and more. Your business collects and produces a lot of financial data on a daily basis. With accounting software, all of that data gets a centralised place to reside. That way, you can analyse your accounts and reach more specific and informed decisions.
Evidently, accounting software is the need of the hour for businesses today. Automation has proven its mettle in all the spheres of operations so far, and accounting shouldn’t be left behind. It’s time to move towards a more strategic and efficient approach towards managing your business’s finances – to ensure happier and calmer year-ends! To know more, visit Dext – check now!