Are You A Caveman?
Do you spend most of your day chasing your food, exploring jungles to find the perfect tool for hunting, or using stones for calculations?
No. Times have changed. Your smartphones are equipped with mobile apps to order food in a click or two. Similarly, the modern tools equipped with innovative features offer an incredible user experience and impressive business outcomes.
But, What About Calculations?
Calculations made with stones during the stone age are similar to calculations performed using the laggard systems in this new age. Businesses are still stuck with those traditional accounting systems and practices obstructing the accountants to utilize the financial data to the fullest, rise above the status quo, and invest their time in excellent financial management.
And the result?
60% of small business owners are not confident in finance & accounting. The manual processes hinder financial activities tracking, payment collection, invoice generation, tax strategy among others.
Besides, the covid-19 hit disrupted businesses across the globe. It encouraged work from home scenario compelling businesses with a global presence to embrace technology at speed. Thus, the accountancy agencies started exploring the modern ways of accounting that can save time, money as well as effort.
The multi-company, multi-branch, and multi-currency accounting systems like FACE empowers companies with features like customized invoices generation with logo and signature, faster user-navigation, interactive customizable dashboard, multi-currency accounting, automatic scheduled emailing of the outstanding report and general ledger, and 25+ customized reports for improved insights.
More than 50% of accounting firms want to leverage such capabilities and capitalize on technology solutions for optimized client expectations. If you are one of them, consider these factors before buying the best accounting software for your business.
But if you are not, you must note that a U.S. Bank study by Jessie Hagan considered that 82% of businesses fail due to cash flow mismanagement and subpar accounting practices.
Quest For Accuracy
The laggard and manual accounting practices are the foundation of such financial mismanagements.
There is an old proverb that says- “to err is to human.” The accountants spend a copious amount of time checking financial numbers, calculating taxes, and preparing financial reports. In such a scenario, misplacement of one decimal point or absence of one zero can change the fate. Your employees under the heat of the pressure spend days and even months to spot the blunders.
However, technology not only saves your business from such blunders but also helps you take multiple steps in a blink. Powered by Automation, modern accounting software becomes a savior for such businesses. It eliminates the need for human efforts to optimize inventory management and encouraging transparent transaction flow. Eventually, the employees spend less time on error corrections focusing more on analyzing information for decision purposes.
Need For Speed
While automation removes manual efforts and errors, it accelerates the processing of accounting data, making it a major differentiating factor between traditional & modern accounting practices.
For instance, an accountant wants to analyze a bill. He made searches in the system, and in seconds he gets every minute detail such as when the bill was paid, the check no., etc. Even if that accountant loses that bill, it is easier for him to find the duplicate invoice and initiate the required process. Imagine the criteria where the data is scattered among multiple systems and papers. In such cases, the accountant will have to spend days flipping papers and make searches in multiple systems.
As per a study, more than 50% of C-level accounting executives expect that the development of more sophisticated automated accounting systems will have a big impact on the industry in the upcoming years
All Processes Under One Umbrella
But experts feel that the speed and accuracy of these modern accounting systems are not the only factors luring these C-level executives. They feel that such systems must be utilized to fill the gaps between the accounting business processes such as sales, taxation, banking, purchases, etc.
Let’s imagine a scenario. If a transaction happens, manual accounting will save its details across multiple systems and ledgers. Such efforts are eliminated by modern systems. You can upload documents of any format like word files and pdf for every transaction in one place. This hassle-free process brings physical storage cost to zero and greatly helps in the audit trail.
Back-up & Security On Priority
Not only the storage costs are brought down, but the modern accounting software also eases down the storage and backup of critical & confidential data. The data encryption technology keeps the data secured and saved on the client’s systems. Next-gen accounting software FACE has extensive features such as-
- Manual backup – Enables backing up of the data immediately on an urgent basis.
- Automatic back up – Little or no manual intervention for storing up data in a given day, date, and time.
- Image and report back up – The businesses conveniently back up the images and reports with Image and Report Automatic Back-Up and Database Automatic Back up.
Therefore, in case of any mishap, the computerized system accelerates the data recovery with zero data loss which is not the case with legacy accounting systems.
Build Reports Like Never Before
And when the business has all the financial documents stored in one place, it becomes easier to generate reports in a few clicks. Imagine the amount of time and costs modern systems save. Also, using such software, you can drill down the report to the transaction level to fetch the financial facts regarding payments, invoices, expenditure, and sales activities.
On the other hand, in manual practices, the employees need to refer to every book to compile the different types of data and generate the report. This process frustrates the employees which affect their productivity and efficiency.
Stick To Compliance
The employees face similar issues during GST compliance with manual books or laggard systems. The time-consuming, manual, and complex tax filing procedure compromises the accuracy of the return filed. While the businesses want to stay compliant with the laws, it gets difficult to do so with manual practices.
To simplify the process, the modern systems allow the automatic journal entries to comply with GST challenges, one-click e-way bill, and e-invoice generation, enable multi GSTN accounts which can be maintained under the same PAN, and easily create GST Returns viz GSTR1, GSTR2A, GSTR3B, ITC04, and GSTR4, among others.
Conclusion
Modern accounting software has an upper hand over traditional ones as they optimize financial procedures and transform them into accurate & efficient workflows with evolving technologies. Thus, saving time and costs, enabling improved data accuracy, securing data, ensuring tax compliance, and helping businesses to achieve higher productivity & great outcomes.
Is your business looking forward to migrating from a traditional accounting system to modern accounting software? Cygnet FACE has been developed with a vision to bring consistency & accuracy in accounting, keeping pace with changes in tax laws, managing high volumes of heterogeneous data, and generating GST compliant reports. For further information, contact us: support@cygnet-face.com