Bookkeeping Software Features

Before computerization, bookkeeping and accounting had clear divisions. Bookkeepers were limited in their operations; bookkeepers’ duties consisted in recording the company's financial transactions in the corresponding journals (sales, purchases, cash receipts, and cash payments) and then posting the amounts into the designated accounts in general ledgers. After posting amounts into ledgers, the bookkeeping ended, and accountants started their work. They made adjusting entries and after that prepared the financial statements and other financial reports.

Now in the age of ubiquitous computing, the distinctions between accounting and bookkeeping have become blurred. Using computers and bookkeeping software enables updating accounts in the general ledger automatically. Once the format of the financial statements or records has been established, the software will generate statements and records with the click of a button.

At first look, it might appear that the small business accounting system is the same and offers accounts payable, accounts receivable, general ledger, billing, and other standard components. Beyond the main attributes, bookkeeping software includes various other features that cover a wide range of functions and services. Some of these features are marginally useful or even nothing more than marketing gimmicks, but at the same time, other features can be considered indispensable. If you are going to choose bookkeeping software, before deciding to purchase such software you should pay attention to its essential features.

Essential Bookkeeping Software Features:

Centralized database.
Robust reporting and analysis capabilities that can help your company to conform to government and industry regulations
Automation of financial activities.
Fast, transparent, automatic updates.
Tracking and managing business expenses and spending.
Easy customization of forms, statements, reports, and other program facets to match your business needs.
Internet connectivity with the purpose to have the ability to send and receive digital documents and handle electronic transfers.
Interoperability with other software products.
Scalability - ability to be easily upgraded to a larger number of users and a growing amount of financial data and transactions.
Graphic tools such as charts and other illustrative formats.
Automating bookkeeping processes and maximizing small business productivity.
Built-in security features and the ability to work with your safeguards.

Bookkeeping software helps to collect, organize, categorize, keep, and manage the financial data critical to small business needs:

Cash flow control and analysis.
Invoicing and billing management.
Warehouse management and inventory control.
Purchases and vendor management.
Clients' account management and credit control.
Bank reconciliation.
Credits control and support of the credit card payments.
Automating and optimizing the bookkeeping processes, and others.

Main goals of using bookkeeping computerized solutions:

Saving work time in comparison with the manual processing of accounting books.
Easily without repetitions entering data into the computer.
Automatically calculating the Balance Sheet and Profit and Loss statement.
Managing the company's cash flow and financial transactions.
Easily transferring the data to accountants and auditors.
Availability of functions and tools that enable performing of the financial analysis.
The automatically printing in the professional format the financial statements, invoices, and other data for accountants to use or auditors to read.

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