How Accounting Software Development May Help Business?
Nothing comes close to the frustration of having incoherent transactions, invoices, and receivables in business for lack of a standardized operating procedure. Companies that are actively engaged in the business are stacked with huge penalties and over-the-head interests due to minor accounting errors such as underpaying sales taxes. For this reason, most companies have embarked on the quest of having at least one application programmer in their IT departments to develop accounting applications and mitigate some of these accounting-related hurdles. In this article, we are going to shed light on what accounting software development process is and how it can help your business increase profitability irrespective of the size.
What is Accounting Software? Basically, it’s a computer application that helps businesses record and process all their accounting transactions at the same time doubling as an accounting information system. When developing such an application, the accounting in-house or offshore development team should always ensure that it features several functional modules including accounts payable, accounts receivable, trial balance, payroll, etc.
Types of Accounting Software and the Businesses They Are Suited For
Given the sensitive nature of accounting, it can be hard to determine the best software for a particular business. This is because all of them aren’t equally made as they feature a set of different attributes, pricing plans, number of uses, and other differentials. Before appraising any of the below-stated software, a company should first establish the accounting challenges they face and understood which one works for them.
Small businesses without complicated accounting tasks can use spreadsheets programs like Google Sheets, Microsoft Excel, or Open Office. One of the reasons why they are best suited for this niche is that they can accommodate basic accounting needs like listing the sales, expenses, and other advanced accounting functions. That notwithstanding, they are free and require little or no training to use.
- Commercial Accounting Software
They are used by small and medium-sized companies as they can sufficiently assist in most, if not all their accounting needs. They include QuickBooks, FreshBooks, or TurboCash and often feature graphs and pictorials to summarize all the accounting information.
- Enterprise Accounting Software
This is the type of accounting software used by large corporations and multinationals. On top of helping with the complex accounting processes, enterprise accounting software often interface with other services like workflow management and project planning.
Normally, when a company commissions enterprise accounting software, they follow multistage protocols which may include requesting information from the accounting software development company and a product demonstration.
The ability to handle these complex accounting tasks emanates from using the relational databases which shows the relationship between multiple sets of data. Common Enterprise Accounting Software includes SAP, Oracle, and Microsoft Dynamics GP.
- Custom Accounting Software
As businesses continue to grow, the challenges faced and the knowledge acquired in the process can be used to create customized accounting software. Businesses can also adopt them in case there are no commercial programs to suit their operations.
How Can Accounting Software Ease the Accounting Process of a Business?
The physical appearance of a person can speak volumes about who they are on the inside. The same applies when it comes to any company’s back office procedures. Healthy accounting procedures enhance the company’s image to the clients and potential investors. So, if you have been procrastinating on whether to deploy Accounting software, here are some ways it can help iron out your business accounting processes and increase profits:
- Help Automate Redundant Tasks
In accounting, data entry can be a time-consuming task. Most accounting systems reduce this as they only require a single entry of information and everything else after that is automated. Some are intuitive enough to track payment habits and the history of particular customers for future reference. In terms of due debt collection, the software uses the cached information to conduct the entries without breaking a sweat.
They also make it easy to locate and retrieve invoices basing on the vendor history. The individual transactions are saved internally without requiring manual data input. At the end of it all, this eliminates potential errors and saves you time.
Some banks also allow linking of accounting software to the business bank account so you can download bank statements to input monthly transactions easily.
- Reduce Costs
In the business world, lost time is equivalent to lost money. By automating and optimizing the accounting process, recurrent expenditures like accountant’s salaries are reduced. This means no more allocation of extra shift hours manually handle all the invoices and transactions.
- They Help with Taxes
As earlier indicated, a small error in tax returns could see your business receive a ridiculously huge fine. Having accounting software helps you record the income and expenses in an organized manner. As a result, you can seamlessly compile and export receipts and documents to your accountant. As an added advantage, properly organized documentation lifts the heavy burden of sorting out from the accountant’s shoulders making your tax returns easy.
Some popular accounting software also complies with tax rules by automatically formatting the invoices averting the unnecessary headaches when tax season arrives.
- Third-party Integrations
Business owners operating multiple platforms will appreciate the versatility and compatibility of accounting software. They allow for integration and automatic data sharing between other programs already in use. Common integrations include ERP, CRM, POS systems, payment processing, advanced inventory management, Google apps, and email marketing.
This leads to a centralized information database that can be easily accessed, eliminating the hassle of moving from one department to the other to collect files.
- Add-on Services
Accounting software comes with multiple add-ons like a payroll management service which makes invoice receipt and payment of employees as easy as it can get. Goes without saying, depending on the software you are using, some of these extra services may cost an extra buck. However, the convenience they bring cannot be equated to paying a bookkeeper to do the same.
Accounting Software Developer Salary
The accounting software development industry is a hard nut to crack. This is especially the case if the owner is clueless about where to start. Even harder is the task of locating the right developer to handle your accounting software project.
Here are some of the salary rates in different countries:
- USA: $47,779 annually
- UK: $54,000 annually
- Canada: $55,000 annually
- Ukraine: $24,434 annually
While many business owners and hiring managers will tout the idea that having remote workers dilutes their managerial oversight, hiring remote workers can actually reduce accounting software development costs without compromising on the quality of work.
As shown above, the salary of a developer is largely affected by their location. In Europe, the average salaries are lower compared to the other three countries making it the ideal location to outsource developers. Talking about Europe, Mobilunity is one of the best IT development companies in Europe. Based in Ukraine, they have a team of experienced and dedicated developers to handle all your IT related projects including developing accounting software.
Hire Accounting Software Developer in Mobilunity
As an entrepreneur, the sole reason why you conceived your business is to take care of your customer’s needs and enjoy while at it. Most likely, that doesn’t include spending countless hours scouring through your accounting books. That’s a reason why are you may be interested in developer accounting software.
Luckily, the ever-growing technologies have brought along amazing accounting software to help you manage invoices, bills, and receipts so you don’t have to take hours every single day trying to figure out things. You can choose one of the already existing commercial software for your business. Simply type “accounting software reviews” on Google to get an idea of what suits your business. However, if you are looking for customized software, Mobilunity will be there to assist you. Feel free to contact us if you want to hire accounting software programmer.