Question

What are some of the major advantages in using computerized accounting systems?

Answer 1

7 Benefits of Computerised Accounting Systems

1. Reduce the time spent on manual processes
   Computerised accounting uses sophisticated software to automate manual accounting and bookkeeping processes, such as complex calculations. For small to medium-sized businesses (SMEs), digital accounting will save hours of time and resource by enabling you to manage your accounts in a fraction of the usual time.
2. Less errors and increased accuracy
   Digital accounting ensures all entered data is calculated precisely, which means you won’t have to manually check your accounts every time you or a member of staff inputs new data. This includes income, expenses, transactional data, account reconciliation, period end adjustments, as well as stock and VAT.
3. Real-time financial information
   Computerised accounting systems are synchronised and aligned with your online bank account. This means you will always have access to up-to-date information on whether invoices are being paid by your customers, as well as your business outgoings.
4. Automated invoices, credit notes and receipts
   Many online accounting systems enable automated invoicing, crediting and receipting processes, which means you will remove time spent creating manual invoices, credit notes and receipts. Some systems also send chaser emails if debts have not been paid, which is a very useful tool for SMEs who usually do not have adequate resources available for debt recovery.
5. Innovative financial technology
   Many computerised accounting systems are cloud-based, which means you can download apps for mobile phones and tablets. This enables you to check your accounts at any time, no matter where you are in the world.
6. Save money on resources
   By streamlining your accounting and bookkeeping processes by using a computerised system, you (or a member of staff) won’t need to spend as much time managing your financial information. This will lead to cost-savings – many computerised accounting systems can be provided by way of an affordable monthly subscription fee.
7. Faster record-keeping leads to more business
   Due to automated complex calculations, continual awareness of your finances, and less time spent on processing and checking your accounts, you can spend more time focusing on your business operations and increasing your profit margin.