Why do I need an Accounting system for my business?

An accounting system is nowadays quite a common word in business. Let us cover the basics concept of an accounting. Accountings is detailed recording, analyzing of financial transactions of medium size business and high-level business.

Accounting is important because it tracks business income and expenses on daily basis and provide financial information for investors and company management which are used for making financial or business decisions.

There are three financial reports on the base of you make decisions.

    • The income statement or profit and loss account provides you information about the income level of the business or profit and loss of the business.
    • The statement of financial position or balance sheet tell us about the company Assets, liabilities, or owners’ equity of the company.
    • The cash flow statement is a bridge between incometatments and statement of financial position and tells us about the cash inflow and outflow.

    The groups who run the accounting system of a company are called Accountants. And the company need Accountants for the following reasons.

    • Real time decision making

    As accountants records financial transactions for the company and prepare financial reposts which provide proper information for the investor’s owners and government about company current situation of the basis of that information owner can make proper decisions.

    • Future Planning

    As accountants prepare two types of budget estimated and Actual budget for the company based on that budget company set its goals and manage the things accordingly and plan accordingly.

    • Time saving for the entrepreneur.

    Most the owners thinks that they would not afford accountants but if you think that the time, he spends on recording the transactions he does many errors, and the reports are not more effectively for the company. Instead of doing the transactions has to focus to run his business properly.

Top 5 Accounting Softwares

There are many accounting software’s which are used for inventory tracking, invoice tracking, expense tracking, preparation of financial reports. But some of them which are most popular and easy to use are given below.

  • FreshBooks

FreshBooks is an accounting software which starts in 2004 in Toronto city. It has subscription-based products which includes. (invoicing, financial reporting’s, payrolls, Accounts payables, receivables, inventory tracking, expense tracking and many more. Nowadays its mostly used in Canada and some European countries also.

  • QuickBooks

QuickBooks is an accounting software which introduced in 1983 by the first time by scout cook and tom Proulx in California USA. The initial QuickBooks did not function as double entry accounting package. After 2000 it starts its proper packages system QuickBooks is more popular among small medium enterprises which includes (invoicing, track sales profits and expenses payroll and track your sales tax the important thing about you can add more uses at the same time.

  • Xero Software

Xero is an accounting software company which was introduced by Rod Drury and Hamish Edwards in Wellington during 2006. Its cloud-based accounting software and mostly focused on small medium businesses. Xero software is used more than 180 in all over the world. In April 2018, the company has announced that it has more than 2 million subscribers all over the world.

  • Sage Software

Sage is an accounting software founded by David Goldman in 1981 in Newcastle. Its focus on small medium enterprises. The sage software was proper launched in 1984 and the company first listed in London stock exchange in 1989 and in 2000 sage shares named best performing shares companies in UK business.

  • Wave Accounting

Wave is an accounting software founded in 2009 in Canada. The number of employees is 205. It is a company which provides double entry accounting tool. Their main services are invoice tracking systems, expense tracking systems, chart of accounts and payroll services.