When it comes to choosing the right accounting software for your business, it can be a bit overwhelming. With so many options available, how do you ensure you pick the right one? We're here to help you avoid the frustration that nearly 30% of accounting software buyers experience due to mismatched features.
In this guide, we'll walk you through the 18 most critical features you should consider when selecting accounting software for your business in Bharat. Whether you run a small startup, a growing mid sized company, or a large established enterprise, we've got you covered.
For Small Businesses (< 200 employees)
1. CFO dashboard
A CFO dashboard is a visual representation of your business's financial health. It typically includes key metrics such as revenue, expenses, profits, cash flow, and debt. The dashboard can be customized to show the metrics that are most important to you and your business.
A CFO dashboard can help you track your progress over time, identify areas where you can improve, and make better financial decisions. For example, if you see that your expenses are increasing, you can investigate to see where the extra spending is coming from and make adjustments to your budget.
2. View of the general ledger
The general ledger is a comprehensive record of all financial transactions in your business. It includes all of your income, expenses, assets, liabilities, and equity. Having a clear view of your general ledger can help you stay on top of your finances and avoid errors.
For example, if you're not sure where a particular expense came from, you can look it up in your general ledger. This can help you prevent fraud and ensure that your financial records are accurate.
3. Expense tracking dashboard
An expense tracking dashboard can help you track your spending and identify areas where you can cut back. It typically includes a list of your expenses, the amount spent, and the date of the expense.
An expense tracking dashboard can help you save money by identifying areas where you're spending too much. For example, if you see that you're spending a lot of money on coffee, you can start making coffee at home instead.
4. Accounts payable dashboard
An accounts payable dashboard can help you track payments owed to vendors. It typically includes a list of your vendors, the amount owed to each vendor, and the due date for each payment.
An accounts payable dashboard can help you avoid late fees by reminding you of upcoming payments. It can also help you keep your cash flow healthy by ensuring that you're paying your bills on time.
5. Dashboard to track the status of invoices sent to clients
A dashboard to track the status of invoices sent to clients can help you ensure that you're getting paid on time. It typically includes a list of your invoices, the amount due, and the date the invoice was sent.
This dashboard can help you identify any invoices that are overdue and take action to collect payment. It can also help you improve your cash flow by ensuring that you're getting paid on time.
6. Reconciliation of transaction records in accounting software with bank statements
Reconciliation is the process of comparing your accounting records to your bank statements to ensure that they match. This is an important task that can help you catch errors and prevent fraud.
To reconcile your accounts, you'll need to match each transaction in your accounting software to a transaction on your bank statement. This can be a time-consuming task, but it's important to do it regularly to ensure the accuracy of your financial records.
7. Dashboard to schedule, track, and collaborate with teams on invoices
A dashboard to schedule, track, and collaborate with teams on invoices can help you streamline your invoicing process and improve efficiency. This dashboard can help you assign invoices to team members, track the status of invoices, and collaborate with team members to resolve any issues.
This dashboard can help you save time and improve the accuracy of your invoicing process. It can also help you improve communication between team members and ensure that invoices are processed in a timely manner.
For Midsize Businesses (201-999 employees)
8. Multi-currency support
If your business deals with multiple currencies, you'll need accounting software that supports multi-currency. This will help you track your finances accurately and avoid errors.
For example, if you sell products in euros and dollars, you'll need to be able to track your sales and expenses in both currencies. This will help you ensure that you're not overpaying for your products or services.
Multi-currency support can also help you avoid errors when calculating taxes and exchange rates. This is important for businesses that operate in multiple countries or that sell products or services to customers in multiple countries.
9. Inventory management
If you have inventory, you'll need accounting software that can help you track your inventory levels, costs, and sales. This will help you optimize your inventory and reduce costs.
Inventory management software can help you track the quantity and location of your inventory, as well as the costs associated with each item. This information can help you make better decisions about how much inventory to order, when to order it, and where to store it.
Inventory management software can also help you track your inventory turnover rate. This is the number of times your inventory is sold and replaced in a year. A high inventory turnover rate means that you're selling your inventory quickly and efficiently. A low inventory turnover rate means that you're holding onto inventory for too long and could be losing money.
10. Project management
If you manage projects, you'll need accounting software that can help you track project costs, expenses, and revenues. This will help you stay on budget and make better financial decisions.
Project management software can help you track the costs of each project, as well as the time and resources that are being used. This information can help you identify any areas where you're overspending or where you can improve your efficiency.
Project management software can also help you track the progress of each project and identify any potential risks. This information can help you make better decisions about how to allocate resources and how to avoid delays.
11. Integration with other business apps
Your accounting software should be able to integrate with other business apps, such as your CRM, e-commerce platform, and payroll software. This will help you streamline your business processes and save time.
For example, if your CRM software tracks your leads and customers, you can integrate it with your accounting software to automatically create invoices and track payments. This can save you a lot of time and manual data entry.
Your accounting software should be customizable to fit the specific needs of your business. This will ensure that you're getting the most out of your software.
For example, if you have a unique business process, you may need to customize your accounting software to accommodate it. This can be done by adding custom fields or reports.
Your accounting software should be scalable to grow with your business. This will ensure that you're not outgrowing your software in the future.
As your business grows, you may need to add more users or features to your accounting software. Make sure that the software you choose can accommodate your future needs.
For Large Businesses (1,000+ employees)
14. Advanced Reporting
Large businesses need accounting software that can generate advanced reports. These reports can help you track your performance, identify trends, and make better financial decisions.
For example, you can use advanced reporting to track your sales by product or region or to identify your most profitable customers. You can also use advanced reporting to track your expenses by category or department or to identify areas where you can cut costs.
Advanced reporting can be a powerful tool for helping you make better business decisions. However, it's important to choose accounting software that can generate the reports you need in a timely and efficient manner.
15. Data security
Large businesses need accounting software that has strong data security features. This will help protect your sensitive financial data from unauthorised access.
Data security features to look for include:
- Encryption of data at rest and in transit
- Multi-factor authentication
- Access control
- Regular security audits
It's also important to choose accounting software that is hosted in a secure data center. This will help protect your data from physical and environmental threats.
16. Audit trail
Large businesses need accounting software that has an audit trail. This will help you track changes to your financial records and ensure that your data is accurate.
An audit trail is a record of all changes that have been made to your financial records. This includes changes made by you, your employees, and your software.
The audit trail should be detailed enough to allow you to reconstruct any changes that have been made. It should also be easy to search and filter.
17. Compliance with regulations
Large businesses need accounting software that complies with industry regulations. This will help you avoid penalties and fines.
The specific regulations that your business needs to comply with will vary depending on your industry and location. However, some common regulations include:
- Generally Accepted Accounting Principles (GAAP)
- International Financial Reporting Standards (IFRS)
- Sarbanes-Oxley Act (SOX)
It's important to choose accounting software that has been designed to comply with the regulations that apply to your business.
Large businesses need accounting software that provides excellent support. This will help you resolve any issues that you may encounter.
The best accounting software will have a dedicated customer support team that is available 24/7. The support team should be knowledgeable about the software and should be able to quickly and efficiently resolve any issues that you may have.
Ready to Try an Accounting Software?
Suvit is here for you!
Suvit is an AI-powered accounting automation software that can help businesses of all sizes save time and money. It offers a wide range of features, including:
Automatic data entry: Suvit can automatically import data from your bank statements, invoices, and other documents. This can save you hours of manual data entry.
Smart categorization: Suvit can automatically categorize your expenses and income. This can help you track your spending and make better financial decisions.
Real-time reporting: Suvit provides real-time reports on your financial health. This can help you identify any areas where you can improve your profitability.
Compliance with regulations: Suvit is compliant with all major accounting regulations. This can help you avoid penalties and fines.
Cloud-based: Suvit is cloud-based, so you can access it from anywhere. This can be especially helpful for businesses with remote employees.**
Scalable: Suvit is scalable, so you can easily add users and features as your business grows.
Suvit is a good choice for businesses of all sizes, but it is especially ideal for businesses that are just starting out. Here are some reasons why:
It is affordable: Suvit is priced affordably, making it a good option for businesses with limited budgets.
It is easy to use: Suvit is easy to use, even for businesses with no accounting experience.
It can save you time: Suvit can save you hours of manual data entry, freeing up your time to focus on other tasks.
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