There are various types of computerized accounting software programs used by businesses all over the world. Accounting software packages may be designed according to industry-specific needs and locations; however, there are some key features that need to be considered when looking into any accounting software.
General Ledger Management
It can be difficult to balance general ledgers at the end of each financial period. Things can become complex real fast, especially if your software is unable to integrate transactions from various accounts. Thorough accounting software makes it easy to manage the different books of accounts that affect important business operations like account receivables, account payables, payroll and sales. A smart software package will ensure that all accounts affected by any transaction are updated on real time basis.
Cash Flow Management
Cash flow requirements need to be monitored on a regular basis. There are times when companies are in need of cash, yet they are unable to produce it. Similarly, investing too much cash in current operations may slow the progress of a business organization. Therefore, it is important to continuously monitor business cash flows. Modern accounting software for businesses ensures that business organizations can optimize their available cash in hand effectively and efficiently.
Financial projections play an important role in setting the future path for any organization. Future revenue and expenditure projections by management can be subject to overestimation. However, contemporary accounting software for businesses can make future estimations based on the actual data available. These projections are closer to the real life economic situation of an organization.
Integration with Merchant Payment Processing
Many business organizations rely on the modern e-commerce system for receiving payments. These payments can be received through a merchant payment processing system. Modern software must be able to record all the transactions made using a merchant payment processing system. This will help business organizations keep a track of all their revenues received in the merchant payment account.
Capital Asset Management
Capital assets like vehicles, equipment, furniture and other fixed types need to be recorded on cost basis. Business organizations often need to buy and sell assets. This asset management involves plenty of complex financial transactions like changing depreciation methods, trading old assets with new ones, deciding on investments required for acquiring more assets, calculating an asset’s salvage value, etc. All these can be done with and ease by using modern payroll and accounting software packages.
Using software for business applications both on and offline is common place today. However, when starting any new business minimizing costs is usually a top priority and some software programs can be expensive. Depending upon the nature of the business there may be payroll, licensing, advertising, product development, and inventory just to name a few. Many of these expenses can’t be avoided thereby leaving the aspiring entrepreneur ‘strapped for cash’. As a result some of the necessary and sometimes costly business software that is needed may have to be placed on a future ‘wish list’ until the funds are available.
Such is the nature of a small startup business left ‘skimping’ along without all the necessary tools needed. The tradeoff is reflected in a lack of operating efficiency and a show of professionalism. These two points are critical in any new business venture.
Alas the advent of freeware! Dating back to the inception of the computer (right after Neanderthal man) these machines were enormous in size and minuscule in out put. Many independent minded engineers of the era were then more motivated by seeing how much these ‘machines’ could do and less impressed with the sheer size. This enthusiasm caught hold across the country and thus the development of incremental improvements on multiple levels, from multiple independent thinking minds and on a national level being shared! WOW, the best of the best.
Thus the beginning of the ‘freeware’ revolution fueled by computer enthusiast who felt they’re getting ripped off by the companies who manufacture the ‘pay for’ versions of many software programs. We’re now looking at a global pool of programming talent whose intellectual pool is far greater and more diverse than those of most manufacturers. As a result, the quality and capability of many open source products made available to anyone who may want to use it, is often times superior to the paid versions on the market today. In addition, the ability for each user to further customize these programs for their particular needs makes freeware even all the more attractive.
A brief rundown of some of the business software that is needed and their freeware counterparts would include ‘Open Office’ that mimics Microsoft’s own Office program, ‘Free Accounting Software’ and of course the ‘Firefox’ web browser and ‘Thunderbird’ email made available at the ‘Mozilla’ website for any and all to use.
When considering any software for business software, doesn’t it make sense to compare the effectiveness of any available freeware first? With continuous updates and improvements, and all at no cost, it’s hard to believe that anyone would even consider a product they’d have to pay for when there is a freeware substitute available.