Which the best online accounting software is right for your business?
The Best Online Accounting Software in Bangladesh
Accounting software is an electronic version of an accountant’s general ledger. Revenues, expenses, assets, and liabilities are all recorded and tracked digitally to maintain a complete picture of your business’s financial health. This innovation can take different structures and offer heap highlights dependent on the requirements of a specific business or industry. However, the vast majority of accounting systems share similar features and functionality. The best online accounting software assists businesses with processes such as payroll accounts payable and accounts receivable.
Core accounting software
Core accounting describes the group of software that retains the company’s general ledger, accounts receivable and payable, basic tax filing functions, and bank reconciliation. These are the minimum functions of any accounting software that hopes to extend beyond tracking accounts on paper or in a spreadsheet.
The combination of these features provides benefits to the company including consolidated reporting, easier tax filing, and deeper insight and control over the company’s money. Core accounting systems come in cloud-connected and on-premise versions. Cloud-connected online core accounting software has the advantage of accepting real-time data from invoicing, e-commerce, POS, and other online data like bank statements.
Payroll software comprises the main category of accounting software and can be combined with general accounting tools or run as a separate best of breed software. Teams looking for the best online accounting software & payroll software should look for a system with connections to time and attendance software, automation for salaried and hourly wage workers, and compliance with tax and regulatory statutes for the company’s locations.
Enterprise resource planning (ERP) software is a feature-rich tool that combines many categories of accounting software from core accounting to inventory, e-commerce, supply chain management, and even business intelligence solutions. Contingent upon the requirements of the organization and the contributions of the product, numerous organizations can incorporate the majority of their money-related information in one complete ERP framework.
Billing and Invoicing
Deceptively simple in theory, billing and invoicing can be complicated and frustrating if you don’t have the right tools. Billing and invoicing software manage the complex accounting gymnastics that many accounts payable and receivable departments perform. The best billing and invoicing tools come in all levels of complexity, but most provide the ability to automate formerly manual tasks and reduce manual entry errors. These tools come as part of larger financial management software or can be found in standalone best of breed options. If researching best of breed billing and invoicing tools, look for connectivity to other accounting, sales, and quote to cash software that your company uses to stay organized.
Project accounting software streamlines the process of completing complex, interdepartmental or inter-company projects, especially those with sensitive resource and capital allocations. Providing time and expense tools, human and material resource management, and billing and invoicing features alongside project management task management and analysis, project accounting tools bridge the gap between basic task-oriented project management tools and core accounting software.
Features of Accounting Software
No matter your industry or business model, the top accounting solutions offer the following standard features or functionality.
While not an actual accounting function, all accounting software systems offer varying levels of security and/or access control in the form of user or role-based permissions, single-sign-on capabilities, and/or data encryption. Many solutions also offer the ability to grant access to your third-party accounting services provider.
The most commonly used area of any accounting solution, electronic management and tracking of A/P and A/R is part of every system and has varying levels of automation. The accounts payable features include tracking payments to vendors, suppliers, and other financial outlays. The accounts receivable feature includes billing/invoicing and collections.
While less important to businesses without expensive capital assets such as production machinery, vehicles, or other forms of property, plant, and equipment (PP&E), electronically tracking and realizing depreciation costs for a company’s material assets is a major function of most accounting systems.
The key to automating the majority of your accounting functions is to connect your software directly with your financial institution. This allows you to reconcile the transactions you’ve recorded with your bank’s records for your company’s credit, checking, or savings accounts. Most systems include pre-built reports for both month-end and year-end closing.
Though many businesses today are handling less cash — or none at all — managing your company’s cash or cash equivalents is a key function of all accounting systems, and necessary for preparing the standard Statement of Cash Flows report. Many accounting systems also simplify managing multiple currencies by converting foreign transactions into the currency your business uses.
Most best-of-breed accounting systems offer support for recording transactions across multiple offices, branches, or divisions. This allows you to treat each subset as its own entity on paper, yet maintain a comprehensive view for tax and/or reporting purposes.
In addition to tracking your business expenses via Accounts Payable, most accounting solutions offer a separate area for tracking individual employees’ expenses and reimbursements. This includes the ability to reconcile expenses with various projects and/or departmental budgets.
Besides electronically recording transactions, the single most-cited reason for purchasing accounting software is automated report preparation for income statements, profit, and loss, sales tax return, etc.
Time and Expense Management
Time and expense management features go a long way to reduce manual payroll and accounting errors by moving paper timesheets to the cloud and digital systems. Time clock software generates digital timestamps based on employee clock in/out data. This data is instantly totaled and submitted to the payroll accounting system, reducing the chance of entry errors and the total amount of time payroll accountants spend on data entry.
Benefits of Accounting Software
These accounting software benefits can have far-reaching effects across the entire company’s financial systems.
The most immediate change many companies notice when they move from paper ledgers or spreadsheets to an accounting software is a major reduction in the time spent entering and balancing ledgers. When comparing payroll systems, look for those that connect to the bank, credit card, and investment accounts directly and ports over financial data without human intervention. That changes the job of the accountant from record-keeper to funds approver and can allow the accountant more time to help direct financial strategy.
Reduction in manual data entry errors
Today’s accounting systems reduce the amount of paperwork required to sufficiently run the financial department of any company. Look for these features or connections to these apps included directly in the software:
• Time and attendance
• Quote to cash
• Financial institutions
• Regulatory compliance
• Tax compliance and submission
account visibility for all internal stakeholders
Top accounting software provides visibility into the financial workings of a company for accounting department representatives, executives, and management teams. Each of these teams may use the data differently, either within the accounting software or exported to business intelligence software.
Potential Issues with Accounting Software
These are the potential issues you might run into if you choose an accounting software that isn’t the right fit for your company. Keep these in mind as you compare best online accounting software choices.
Multi-currency and multi-country support with tax and regulatory compliance
Some accounting systems are built to manage finances within a specific country or in only a select few currencies. Companies who do business across 2 or more countries or who often do business in a separate currency should look for accounting software that meets those requirements.
When comparing accounting software, check to ensure that the software supports your local tax and financial regulatory statutes, as well. This will ensure that you can use those valuable tax features without much manual intervention.
Cloud computing provides more security for accounting software than paper ledgers because they can be password protected and teams can assign granular user roles to ensure that the right people have the right access to the right financial data. The best cloud accounting software also provides the physical security of offsite databases, automatic data backups, and data encryption to protect the company’s financial data.
Reporting and Analytics
In addition to providing export features to business intelligence software that gives stakeholders a full-spectrum view of how the company’s financial data impacts the overall business environment, many accounting software tools also provide dashboard reporting and financial analytics right in the tool. These features help accountants and accounting track spend vs. income, outstanding invoices, and other KPIs critical to the company’s financial health.