Financial Accounting Software
Financial accounting software is a significant part of an enterprise resource planning (ERP) system that includes modules to process the paramount accounting areas:
- General Ledger (GL) – a set of numbered accounts that holds information needed for preparing financial statements and records of financial transactions over the company's life.
- Accounts Payable (AP) – an accounting entry which represents an obligation to pay a particular creditor a short-term debt that evolved when goods were bought on credit (without paying in cash).
- Accounts Receivable (AR) – an accounting entry which represents the money a company has a right to receive because it had provided customers with goods or services and extended a credit which needs to due within a relatively short
The most comprehensive financial accounting software packages can also include additional modules:
- Cash Management – collecting, handling, and payout of cash.
- Tax Management – maintaining accounts, making payments, filing returns, tax deductions and payment of tax.
- Fixed Assets – maintaining assets and property (that cannot easily be converted into cash) that a company owns and uses in business operations to generate income.
- Payroll Management – managing and controlling payroll procedures.
- Currency Management – implementing the strategy of limiting currency risks.
- Intercompany Accounting – balancing the accounts between different branches of the company.
- Revenue Management – predicting customer demand to optimize inventory and price availability with the purpose of maximize revenue growth, and other.
Some benefits of using financial accounting software:
- efficiently managing the planning, procurement, accounting, budgeting, projects, and other processes
- consistently providing the right financial information
- single customer record for ERP and CRM
- seamless cash processing
- eliminating errors between the front and back office
- acting as one company, not different departments
- improving the making business decisions
- speeding up bookkeeping processes
- saving time spent on data analysis
- continuous monitoring of finance and managing of cash flow
- avoiding errors that evolved from manual data entry.