Financial accounting is a process of collecting, measuring, recording, and presenting commercial transactions performed by the company.
Financial accounting software is a significant part of an enterprise resource planning (ERP) system that includes modules to process the paramount accounting areas:
- General Ledger (GL) – a set of numbered accounts that holds information needed for preparing financial statements and records of financial transactions over the company's life.
- Accounts Payable (AP) – an accounting entry that represents an obligation to pay a particular creditor a short-term debt that evolved when goods were bought on credit (without paying in cash).
- Accounts Receivable (AR) – an accounting entry that represents the money a company has a right to receive because it had provided customers with goods or services and extended a credit that needs to be due within a relatively short
period.
The modern financial accounting software system is flexible, affordable, and secure. It provides a wide range of features with powerful functionality. Features provided by financial accounting software differ from system to system. The list of features, you can see below will help you to decide what your company needs for smooth running.
Features that could be provided by the financial accounting software system:
- Accounts receivable to control bills and handle invoices, to monitor customers' payments and owes.
- Accounts payable to track of company owes.
- Banking to make direct payments and import data from banks and bring it into the accounting system.
- Reconciliation of bank accounts with the purpose to track, reconcile, and match the balances in accounting records and bank accounts.
- Fixed assets to manage and control financial information about significant company assets.
- Purchase orders to handle company purchases.
- Inventory management to manage and control the inventory movement and prevent over or under-stocking inventory levels.
- Invoice processing to create and handle invoicing with the reason of knowing from whom, how much, and when to expect payments.
- Billing to generate and send bills to customers for products and services.
- Automatic invoicing together with late reminders to recall customers about the need to pay their bills.
- Payment processing gives customers the ability to pay bills electronically.
- Automatic payments enable automation of the payment processes that prevent late payments.
- Check the handling to print and process checks, including duplicate-check-payment notification, and check the voiding.
- Expense deductions and reimbursements to coordinate tax-deductible expenses reimbursements and made such payments in accordance with tax deadlines.
- Credit memos to monitor and control the vendor credits.
- Payroll to manage the payroll process from counting employee work hours and processing salary to paying payroll-related taxes.
- Tax forms to generate and send electronically required data to the IRS.
- Tax calculations to calculate automatically income tax due.
- Electronic tax payments to set up automatic payments and prevent penalties for late tax payments.
- Direct deposit to install scheduled direct deposit payments, including paychecks deposited directly into employee bank accounts.
- Cash management to collect, handle, manage, and payout of cash.
- Shipping to manage and control shipping processes.
- Reporting to generate various standard and customized financial reports.
Some benefits provided by financial accounting software:
- Efficiently managing the planning, procurement, accounting, budgeting, projects, and other processes
- Consistently providing the right financial information
- Single customer record for ERP and CRM
- Seamless cash processing
- Eliminating errors between the front and back office
- Acting as one company, not different departments
- Improving the making business decisions
- Speeding up bookkeeping processes
- Saving time spent on data analysis
- Continuous monitoring of finance and managing of cash flow
- Avoiding errors that evolved from manual data entry.
Choose easy-to-use and, at the same time with a strong security and access control system and you will not worry about your sensitive financial information.
EZIBELINE LLC