Financial Accounting Software

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 that 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 period.

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 maximizing revenue growth, and others.

Some benefits of using the 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.
Financial accounting software solution