Friday , January 27 2023
Accounting Software

How To Use An Accounting Software Online: Step-By-Step Guide

An accounting software records and manages an organization’s everyday financial transactions, including expense management, fixed asset management, accounts receivable and payable, revenue management, reporting and analytics, and sub-ledger accounting. The accounting system maintains track of all an organization’s assets, revenues, liabilities, and expenses. Then, these transactions occupy the general ledger in real life and provide treasurers, CFOs, and controllers immediate access to accurate financial information. It also lets the business owners observe their performance at the operational level.

Systemic documentation of financial transactions helps produce annual financial statements, including income statements, balance sheets, stockholders’ equity statements, and cash flows. Accounting software is one of the most critical components of ERP.

The ERP system unifies all the vital functions of the business, including financial planning and analysis, accounting, inventory management, supply chain, and procurement. These apps are incorporated with a data model and familiar user interface, eliminating the need to integrate siloed data or to move between systems to manage different aspects of your business.

Using accounting software may seem challenging at first, but considering the time wasted manually recording information related to your business, using automated accounting software is necessary. Even though it will take some time to set it up and get used to, it will save you a lot of time in the long run. This blog will help you understand how to use accounting software online.

How to set up your accounting software?

Choose an accounting software package

The online accounting packages available these days can easily handle a small business’s accounting needs. With many packages to choose from, you should be careful with your choice as you will be stuck using that software for a long time once you set it up. So, don’t forget to do your research before you decide on an accounting software package.

Choose a starting date for your computerized records

The ideal time to set up your accounting software is the start of an accounting period. This is because you will have all complete accounting information available from closing the previous period. These balances are entered into the accounting program as beginning balances.

Assemble all your business records

The primary accounts for most small businesses are usually bank accounts, accounts payable, and accounts receivable. When starting a business, the beginning balance will be zero. Account balances are built over time as the transactions are entered. The date you open up the bank account will be taken as the start date, and new accounts are created in the system as the need arises.

Set up your general ledger accounts

General ledger accounts categorize and summarise your transactions and list them in the accounts chart so they can be modified. Your accounting package setup wizard will walk you through entering beginning balances after creating financial accounts. After you choose your business type, a standard chart of accounts to start with will be recommended by your wizard.

Enter your transaction data

At the end of every month, take some time to enter that month’s transactions and balance your accounts for that period. Also, you have to enter your bank deposits after recording any payments received against the customer invoices. You can also enter your bills and record the payment checks written from the bank account. Enter the finance charges using vendor statements and verify that the vendor balances are accurate.

To ensure precision and accuracy, you should reconcile each account at the end of each month. Don’t forget to enter all the transactions from the start to the current date so that your account balances stay up to date and help you create financial statements. Once all your accounts are up to date, keep up with them every month to have ongoing accurate financial records.

Cloud Accounting Software

Cloud accounting software is an accounting software that uses cloud storage to store your data. This kind of software is loaded on remote servers akin to the SAAS (software as a service) business model. Choosing cloud accounting can truly up your financial records game as you will not need to upgrade or reinstall your accounting software again when you change your device or buy additional ones. As all information is stored on the cloud, you can access it 24/7 from any device, anywhere.

Features of an Accounting software

The first thing to consider is to choose an accounting software that suits your business. Determine the accessibility, features, and usability of your preferred software. Following are some of the main functions of accounting software:

  • Track expenses and income
  • Invoice processing
  • Organising financial statements
  • Pay vendors
  • Access IRS tax forms and print them
  • Accounting software’s vital functions are tracking income and expenses, accessing IRS tax forms, and processing invoices.

Using accounting software: In a nutshell

Accountings oftware manages a business’s accounts by generating, recording and analyzing customer and vendor invoice information. It helps to track income and expenses; you can employ invoice lists and record when you make or receive a payment. You can also use the software to make payments and print checks. If you want to view financial statements, enter your preferred period and run the report within the system.

Check Also

A Brief Introduction to MS Office

A Brief Introduction to MS Office

Microsoft Office, first introduced in 1988, is a bundle of office-related applications that were primarily …