Question

Written Assignment: a minimum of 4 full pages (exclusive of title and reference pages), applying APA formatting.

Activity Details
Perform the following steps:

Step 1: Introduction

Begin with an introductory paragraph that describes how accounting software can be used to track business finances and contribute to the quality of record keeping management.

Explain what must be taken into consideration when selecting such software.

Step 2: Research and Content

Research the Internet and identify three accounting software packages that you would consider for a small business.

Explain what must be taken into consideration when selecting small business accounting software
Follow-up with multi-paragraph responses for each accounting software package (advantages and disadvantages)
Document if the accounting software packages selected can or cannot be used as a strategic business management tool (historical data, reporting, forecasting, etc.)
Compare and contrast the three software accounting software you have selected with a focus on record management.

Step 3: Conclusion Summary

For the conclusion paragraph state why the quality of record keeping is so important and can be used to track business finances for accurate record keeping. Highlight the key discovery of your accounting software research. Conclude with a statement how accounting software can be leveraged as an effective strategic business management tool.

Answer 1

Accounting is the basis and very crucial part of every business, and there is a need to maintain proper records of every transaction i.e. be it sales, purchase, any expenses that have been incurred and any other transaction that has been taken place to transact the business needs to be recorded. This recording of the transaction into proper books can be done by an accountant and with the help of the accounting software to manage the business effectively. To find out proper gains profits and losses of the business records need to be maintained and for this purpose, and to make the records easier to maintain without any errors need of accounting software is there.

With the help of accounting software, there are chances of eliminating human errors in calculation, and increase accuracy is accomplished with the software. As if there is an incorrect calculation early in the process could have major impacts on end balances. But it should be kept in mind that these softwares are not immune to human data entry errors or any interpretation made by them.

Simple accounting software is important for tracking the success of our business. It allows storing all the information that gives a clear picture of the business financial health. The software can easily manage bookkeeping and allows monitoring costs and revenues to maximize profit margins. Accounting software gives insights into the overall financial performance of the business. It handles all financial aspects of our company and keeps the record of business transactions. It manages the general ledger, accounts receivable and accounts payable. Moreover, it allows tracking cash flow, revenue, and expenses.

There are many factors that need to be considered while selecting the software for the business. these factors help to select the software which shall be perfect for the business. Some of these factors can be:- It should be user-friendly, as the people working on the software should easily work on the software and there should not be much problem in using the software. The software should be based on web applications and should be such that it could be integrated with other business software.

There should be proper customer support if there are any problems occurring with the software and the software selected should keep the data secure as it is the foremost important thing needed in the software. Pricing of the software also matters in selecting a software as more expensive software will not be of good use if it is a very small business and records can also be maintained properly by other cheaper software.

There are many accounting software in the market that can be used for accounting and managing records of the business. Three accounting software packages that can be suitable for the business are:-

1. FreshBooks

2. Sage50cloud

3. NetSuite ERP

1. FreshBooks

FreshBooks helps users address recurring invoices and subscription easily. It supports online payment collection via credit cards, PayPal and Google Checkout. This piece of software integrates seamlessly with known business applications, allowing for streamlined processes. As it is a complete suite, the need for additional software is eliminated, providing users with absolute control over their financial operations all from a single dashboard.

Advantages of Freshbooks are:-

It is Simpler but has a powerful solution. It can easily be used by the client and can give impactful results in storing the records as necessary. Also, FreshBooks comes with mobile add-ons for devices running on Android and iOS, enabling users to access information anytime, anywhere. The tool’s time tracking capability is designed for use in billing, enabling businesses to get paid online through a variety of payment gateways. For small businesses, FreshBooks offers an invoice to payment functionalities. Users can pinpoint the exact location where a customer opened an invoice email, very useful in catching customers who say the invoice never got to them. The platform hosts features that allow for the tracking of both past and current invoices. Unpaid invoices can be pulled out instantly using this functionality.

2. Sage50cloud

It is an online accounting solution designed to help small and medium-sized businesses manage their financials and stay compliant with taxes and reporting requirements. It comes with all essential features expected of a best-in-class accounting platform such as taxes, inventory, budgeting, cash flow, and invoicing. In addition, we get a wide range of add-ons including credit card processing, HR/payroll, POS, e-commerce, data management and more. With its mobile capability, can make payments on-the-go and bill customers, and provide the accountants real-time access to accounting books.

It is helpful as it gives us extreme flexibility by combining the power of desktop software and the convenience of the cloud with an array of 50 features to manage our financial business operations and requirements. It keeps finances safe and secure with screen-level user access and bank-level online protection to keep critical information safe. With its enterprise-grade features, the software is kept affordable and within reach of small and medium-sized businesses, making it the accounting solution of choice by over 7 million customers in 23 countries. One doesn’t have to be an accountant to organize the business and get ready for tax season with its built-in checks and balances to ensure that financials are accurate and are available anytime and anywhere.

3. Netsuite ERP

It packs general ledger and other financial tools with e-commerce, sales, and marketing to grow the business. The sales tool includes a contact manager that let manage leads, automate communication, track the sales pipeline, generate quotes, and sync calendars with the teams for enhanced collaboration. The e-commerce component integrates order management with order processing and fulfillment. An inventory management tool takes care of the stocks, and a shipping module gives the flexibility of features that can be added as need expands.

At last, we can say that accounting software plays a very crucial role in maintaining and managing all business records and finances. It is very important to select the right software for our business as per its requirement and to maintain the business finances properly. As it is the most strategic tool for determining how the business should grow and work.