Updated: Feb 21
Michael Gerber once said "You can not be the accountant in your accounting firm. You can not cut the grass in your landscaping business. You can not work on the vehicles in your auto repair shop. And you really can not spend all of your time managing those actions, either"
With this regard, it is high time small businesses in Ghana utilize accounting systems to help them manage their finances properly. As we all know, it is better to delegate and attain perfection than do everything on your own and fail your business. What better way to do this than delegate an accounting management software to do your bidding.
Before we delve deeper into the features and why you need an accounting system, let us look at what an accounting system is.
What is an Accounting System?
An accounting system is a set of accounting processes with integrated procedures and controls. The main job of an accounting system is to record business transactions, summarize those transactions into an aggregated form.
Details of an Accounting System
An accounting system typically includes coverage of the major functional areas of an organization, including the purchase of goods and services, sales of goods or services, payments to employees for wages earned, and financing activities, such as obtaining debt, selling shares, and paying interest to lenders.
What an accounting system manages
Expenses: In older accounting systems or with a manual system such as Excel, it is necessary to: manually enter, balance, and categorize each expense. An automatic accounting system allows quick entry, categorization, and automatic balance of expenses.
Invoices: Creating a professional-looking invoice is a necessary part of developing a positive brand image. Today, some accounting systems such as Quickbooks allow for instant invoice creation with the ability to customize and automatically keep track of paid invoices and income.
Funding: All the business liabilities, whether accounts payable, bank loans to support the business or mortgages, etc. An accounting system keeps track of these liabilities as payables and automatically updates the balances.
Accounting systems such as Quickbooks Accounting Software are geared mainly toward small and medium-sized businesses which offer on-premises accounting applications and cloud-based versions that accept business payments, manage and pay bills, and payroll functions.
Features of An Accounting System
Create professional custom invoices, send payment reminders, and match payments to invoices, automatically.
Get set for tax time with all your expenses organized in one place.
Save time and reduce errors when you connect your bank to get a view of your finances.
Easily organize expenses into tax categories and track sales tax on income and expenses to know where you stand and how much you owe
Stay on top of your orders and quantities while managing your inventory in real-time.
Capture & organize receipts
Use your phone to take photos of receipts. Match them to bills to stay organized and ready for tax season with everything in one place
Save time by running your business quickly with your mobile device
Insights and reports
See how your business is faring and how it could look in the next 90 days, with a range of reports and the cash flow planner.
Send invoices, record transactions and adjust reports in different currencies and assign currencies to customers.
Importance of An Accounting System
It brings organization to your small business: QuickBooks Online keeps everything in place to always have what you need when you need it.
Frees up time: Sync with your bank and favorite apps, so your books are always accurate and up to date.
Unlimited support: An accounting system offers free and unlimited customer support; help is always just a click away.
There has never been an easier way to get started with an accounting system.
Learn how Powersoft System makes it simple to manage your business finances and optimize growth.