Bookkeeping is the primary step in the accounting process and debatably the most important one. A bookkeeper will assemble all financial data – from transactions to wages – and turn them into easy-to-read reports that are organized for future examination.
Accounting apps have taken over accounting operations in so many companies and institutes all across the globe. Time-consuming and error-prone labour-intensive accounting process is considered unproductive and slows down the performance of accountants. This is why more and more businesses are substituting to automated accounting solutions. Here are a few key benefits an accounting app can offer for your business.
- Improved Data Accuracy:
Data accuracy is crucial for any business. The issue with manual bookkeeping is that there are most commonly errors in writing and bad writing can be misinterpreted by anyone. Manual calculations are also very susceptible to mistakes.
It is true that human error cannot be entirely removed from daily accounting tasks, but an accounting app can minimalize the likelihood. Taxes, income, expenses, etc. are formulated automatically by the app. Any errors such as identical entries can be acknowledged by the system so that accuracy can be enhanced significantly.
- Increased Mobility:
A cloud-based accounting app provides you the benefit of being able to access your business account from anywhere. The app can also be used through frequently used browsers. In addition, you can also access your accounting information using your smartphones or other mobile devices.
Some of the procedures you can malleably perform when using an accounting app are:
- Trailing profits and losses across numerous business locations
- Generating and sending invoices straight from your mobile devices
- Inspecting transaction history and billing reports
- Recording expenses and assigning receipts
- Keeping up with customer payments
- Getting real-time insights into your income, expenses, etc.
- Instantly producing financial statements such as income, cash flow, changes in equity, balance sheet, etc.
- Complete Financial Visibility:
An accounting app delivers more complete information related to your finances. Some of accounting apps even let users to estimate cash flow, helping them figure out when expenses are likely to happen and when income is likely to be received.
Usually, thorough profit and loss data is problematic to be generated, specifically if there are multiple businesses to be managed. But with a complete accounting app, you can examine your profits and losses based on area, store or warehouse location, and even product.
- Simplified Tax Compliance:
Apart from calculating how much tax is payable on specific invoices, some accounting apps also let you to produce reports that show how much of a specific tax your business has paid for a specific period of time, making it easier for you to gather the data required to complete and submit government tax forms such as VAT (PPN) and PPh-23.
With the development of technology, it is better to entrust an accounting and bookkeeping app to keep a track of all your financial reports and operations and let the app calculate your taxes with minimal error.