Did you know? 52 percent of the small business owners believe that they are overtaxed. Perhaps, they might be correct and it is a matter of time to have found to what extent this figure is correct. But unequivocally, this be or not be a fact is a mere consequence of not having in place a paradigm that can not only pin point of being overtaxed but conjure a system that can save you from conditional or unnecessary tax.
So, how is Accounting a beam of light for businesses wanting to settle for lower taxes?
Quite rightly, Accounting is imperative to our everyday life. Without realizing its applications, we perform accounting in our day-to-day endeavors such as budgeting, calculating opportunity costs, calculating expenses, etc. Of course, it is used on an advanced level in businesses and organizations.
So, there are skilled and specialized people who handle the intricate work in the accounting departments. And perhaps, a mere negligence or error can lead to bigger problems. Similarly, it cannot be possible to eliminate errors every time especially when humans are involved as human errors are random unintended but reoccurring events.
The modern era of Accounting
The World is moving rapidly towards technology, and people in the technological spectrum have come up with solutions to avoid these errors to great extents. The accounting horizon has observed a massive rise in grasping the financials even in the smallest aspects especially after the industrial revolution and the introduction of computer systems, so, the software developers began formulating accounting software programs and for the first time in 1978 “Visicalc”, accounting system was introduced to the world.
Accounting software support businesses irrespective of their size to manage their accounting activities more effectively and efficiently as it automates many functions which had to be done manually without the software.
An accounting software program itself is a highly productive resource for a company as it can process large amounts of data in seconds. Besides, its utilities can include but are not limited to saving, processing, reporting, analyzing, and forecasting information based on the provided input.
Accounting in varied organizations is used for several functions while some of the most significant functions are:
Bookkeeping:
Bookkeeping is a process of recording all the financial transactions in terms of debits and credits to update them for financial records.
Financial reports:
Accounting is used to create financial reports that include profit and loss statements, balance sheets, cash flow statements, ratios statements, etc. that are used to have insight into the company’s financial status.
Tax:
Paying tax according to governmental regulations is necessary. In this case, an accounting software program supports reconciling taxes easily whether it be corporate, employee, or product/service taxes.
Apart from that, there are several benefits of using an accounting software program including:
Time leverage:
Whether a startup or a growing business, it saves a great deal of time and human effort. Processing the data manually can be very time-consuming and hectic. Whereas, with the accounting algorithms these repetitive tasks and data can be processed quickly.
Error omission:
Human efforts regardless of the deliberate attention can occur sometimes. But this is not the case with a software program as it is 100% accurate given that the provided input is correct.
Ease of accessibility & navigation:
Data is the most important aspect of an organization. Most importantly the accounting data is critical to organize strategies and decisions. Therefore, having the ease of accessibility and navigation is a key element while an accounting software program enables users to navigate to the required data in seconds without the need to look for it especially when the data is huge. On the contrary, the program enables access to accounting data from anywhere in the world.
Insights:
An accounting software program provides detailed information about finances, budgeting, and all sorts of accounting data that makes it easier for the management to make informed decisions.
Payrolling:
With an accounting system in place, payrolling can be managed systematically. Deductions, allowances, taxes, and insurances are automatically incorporated into individual salaries during the processing of data provided that the basic information is added into the system to organize payrolling.
Automation:
With the automation this system offers organizations require fewer people to manage the accounting department as most of the work is done by the software itself. This means that the organizations can achieve higher efficiency using lesser resources on their accounting.
Professional:
Traditional accounting practices had been less professional and not completely presentable as most of the times they deviated from the standards and benchmarks. However, accounting software ensures benchmarks and standard operating procedures to process and represent data. As a result, the output from the system is ready for external audits and all kinds of analysis.
Security:
With an accounting system a company’s data remains secure and safe. They come with highly encrypted frameworks that do not allow access from outside the organization without complete authentication even with the cloud data enabled.
Cost-efficient:
Costs may vary in different types of accounting software programs available in the market while some may be less expensive others can be expensive, depending on the features they are offering. Despite that, these programs are cost-efficient in comparison to the amount of work they manage on a day-to-day basis relative to conventional methods.
No doubt, all of the aforementioned aspects are critical for workplaces as they enhance organizational performance, save time, and resources. Additionally, an organization can empower itself with high-performing systems to generate more revenues and do more in terms of working output.
Systems like these come with a huge potential to transform workspace, in addition to the mentioned functionalities, there are certainly a lot of tools and features equipped in an accounting software program such as invoices, receipts, job order costing, process costing, etc.
Many businesses lookout for programs that can increase the potential of their work and optimize their resources. In light of accounting, the same is the case but as some reputable systems are highly expensive, organizations stick to manual practices to save resources. However, QBM is a complete accounting solution that comes with six different editions each designed for a distinct purpose and according to the organization size.
QBM offers more than just an accounting system and organizations wanting to utilize complete ERP systems can opt for QBM to manage most of their domains with a one window solution.
QBM can be customized for different organizational requirements and people wanting to get a cost-effective accounting solution can always look out to QBM as it offers to automate work environments to produce better results so that the organizations can always have better value than what they pay for.
So, what are you waiting for? Try QBM today for free on a 14 days trial and start getting results for your organization.
Read more about how QBM can improve your Human Resources & Payroll Planning
