What does accounting software for small and medium-sized businesses do?
Accounting software can reduce the time it takes to enter data by synchronizing bank accounts and company credit cards with the software. Once synchronized, transactions are transferred to the Best Accounting Software In Dubai and classified into the appropriate accounts.
Although most accounting software is easy to use, a general knowledge of accounting principles is require to produce correct financial statements. For this reason, many businesses hire accountants or bookkeepers to manage and control their accounts. Cloud-based online accounting software allows you to access your accounts at the same time as your accountant or bookkeeper.
Some of the most basic features of accounting software for small businesses include
- Invoice creation
- Synchronizing bank and credit cards
- Accounts payable
- Accounts Receivable
- Online collection of payments from customers
- Preparation of basic accounting records such as profit and loss statements, balance sheets and cash flow statements
- User access from professionals such as accountants and tax accountants.
How does accounting software work?
Once the company’s bank accounts and credit cards are synchronized with the accounting software, transactions appear in a queue and are categorized in the company’s chart of accounts. Once the correct category is selected, the transactions begin to be entered into the company’s accounting software. Within seconds, business owners can check profitability, compare income and expenses, verify bank account balances and loans, forecast tax liabilities, and perform other accounting tasks. With quick access to this financial information, business owners can make important decisions.
In addition, many accounting software programs allow integration with third-party applications. For example, if a business owner uses a point-of-sale system to record sales transactions, this system could integrate with accounting software to record specific transactions, VAT liabilities, sales by sub-category, etc. In the case of service businesses, a time recording application could integrate with the accounting software to add work to customer invoices.
How much does accounting software for SMEs cost?
The cost of accounting software for small businesses ranges from $0 to $150 per month. A basic subscription ranges from $0 to $40 per month and is a good start. The basic plan allows you to categorize income and expenses, send invoices, and create financial reports. As your business grows, most programs are scalable and you can easily update the plan to meet new business needs. More robust plans allow you to track inventory, create more customized financial reports, run payroll, choose multiple invoicing options, and more.
How to choose accounting software for SMEs
We have researched 19 accounting software providers with specialist products for SMEs and picked the top five. We considered cost, scalability, ease of use, reputation, and accounting features. The longer a company is on the market, the more likely it is that technical errors eliminate and that important company financial information is accurately report.
The second most important factor was scalability, because accounting needs increase as a company grows and it takes time to migrate financial information to new software. Finally, ease of use and collaboration between managers, staff and accountants considered, as it is important that all users can access and view financial data at the same time.