Accounting Software Requirements FAQs

How much time does accounting software save?

The exact amount of time saved depends on the size of the business and the complexity of its accounting tasks. Leading accounting software automates many of the repetitive and time-consuming tasks that are part of manual accounting, such as data entry, bank reconciliations and financial reporting.

An example of the time savings can be found in the month-end close. I’ve seen companies take over a month to close their books from the previous month. By implementing the right processes and software this time can easily be reduced to a week. I’ve helped companies get down to two-day closes.

My goal, one day, is to help companies see zero-day closes. I’m confident that with AI and other technologies it will happen one day.

How does accounting software save money?

Accounting software saves businesses money in many ways, especially when it automates accounting and other business processes and functions. Savings result from improved efficiencies, reduced staffing costs and access to real-time financial data that leads to better decision-making and compliance with regulations and standards, to name a few ways.

Another benefit of automation is that, by eliminating the “swivel chair computing syndrome” of employees manually copying and pasting data from one application to another, the employees are happier and much more likely to stay in their jobs, reducing the need to hire and train new people to do the work.

What is accounting software and what are its required features?

Accounting software helps businesses manage their financial transactions and accounting processes. Required features typically include:

• General ledger: Tracks all financial transactions of the business, including sales, purchases, payments, receipts, and other financial activities.
• Accounts payable and receivable: Manages the money the business owes to others and the money customers owe to the business.
• Invoicing: Allows businesses to create and send invoices to customers, track outstanding payments and manage the invoicing process.
• Financial reporting: Generates financial reports, such as the balance sheet, income statement and cash flow statement.
• Bank reconciliation: Matches the business’s bank statements with its accounting records to ensure accuracy.
• Payroll: Manages employee pay and calculates taxes and deductions.

How long does it take to implement accounting software?

Implementation time varies depending on business needs and deployment method. Cloud-based accounting software can often be up and running in a matter of hours or days since it’s hosted by a third-party provider, whereas on-premises accounting software requires additional time, possibly weeks or months, for hardware and software installation, configuration and customization.

What are Four factors that should be considered when selecting accounting software?

Four factors that should be considered when selecting accounting software are ease of use, scalability, security and the ability to integrate with other software.