There are many benefits to using accounting software; here are the most important:
An accounting system can track and help process AP and AR. Automating parts of these processes reduces reliance on spreadsheets and lowers the likelihood of human error that can lead to lost money, mis-payments, and inaccurate reporting.
Accounting software gives you the power to produce customized financial reports according to your exact business needs. Better financial reporting can help you identify wasteful spending practices, like manually sending invoices to customers or overpaying vendors, and save money in the long run.
A system that accommodates electronic payment methods will facilitate easier and therefore faster payments from customers. You can also schedule automatic invoice notices and reminders instead of manually creating and sending out invoices to customers. Similarly, you can schedule electronic vendor payments so you can hold on to your cash for as long as possible without incurring penalties for late payments.
A cloud-based accounting system lets you access critical business data from anywhere with an internet connection. This helps you keep closer tabs on money coming in and going out, financial KPIs, and other mission-critical tasks.
On-premises infrastructure and the staff required to maintain it is expensive. Using a cloud system that stores financial data in secure, remote data centers lowers these costs and allows your employees to focus on other important tasks.
Accounting software can integrate with payroll software — they’re often sold as a package — to help calculate your business’s taxes and withholdings and manage complex commission and bonus structures. This makes running payroll less of a headache and ensures accurate paychecks.
An accounting system will typically offer a variety of organizational roles and allow you to set approval rules for spending based on those roles. The system tracks who initiated spending and who approved it, providing a record of how and when money is spent.
The cost of accounting software depends on several factors, like if it’s on-premises or cloud-based, how many users need access, and what additional features you need. But here’s some general guidance:
You likely know the ROI formula, but as a refresher:
Accounting software typically delivers a high ROI because it’s relatively low-cost and can fully or partially automate labor- intensive tasks like AP, AR, and account reconciliations. This boosts productivity and gives your employees more time to concentrate on other, high-value tasks. The system will provide a more accurate and complete overview of your financials so you can better prioritize spending.
Like with other types of technology, one-time implementation and training costs mean that you typically spend more than you make in year 1 with accounting software. However, the financial benefits surface in subsequent years as your business grows — for example, you’ll likely see increased savings via improved invoice accuracy and additional payment options for customers. As your business grows, this technology will shift from a nice- to-have to a must-have, so the sooner you adopt it, the better.
NetSuite’s cloud-based accounting software unifies all your core accounting processes and financial management tasks. That includes recording transactions, managing payables and receivables, collecting taxes, closing the books, and financial reporting. Together, this gives you an accurate picture of your company’s financial position at any given moment and helps you establish strong financial controls.
Every month, finance teams waste hours creating journal entries, reconciling account statements, and collecting and normalizing data from other departments. Automating work around the month-end close provides more time to review transaction details and investigate anomalies, increasing accuracy. Similarly, you can save your team time and reduce errors by automating many steps around payables and receivables. The result is faster payments from customers, minimal overpayments or duplicate payments, fewer late fees, and a lower risk of fraud.
Real-time visibility into bank account balances and cash inflows and outflows helps you better manage liquidity by making decisions with your cash position in mind. This is critical in the current economy, as companies need to monitor their expenses more closely to build up their cash reserves.
NetSuite gives you one system where you can monitor crucial metrics and drill into the numbers to resolve issues and better understand company performance. Your data is stored in the cloud, not on a local server or device, meaning members of your finance team can access it from any connected device at any time.