Technology is evolving faster than ever and the accounting sector is no exception. The increasing market demand of intelligent technology is pushing the growth of the global accounting services industry. This has led many organizations to recognize the potential of accounting software for the business. With this pace, the global accounting software market share is projected to reach $22.91 Bn by 2027.
With traditional accounting methods – using excel sheets or maintaining physical accounting books, has led to a lot of drawbacks like,
- Time consuming redundant accounting practices
- Big storage spaces for bookkeeping
- Human resources allocation (salary and maintenance)
- Constant tracking of tax regulations
- More space required for backup.
Whereas, a Dext accounting software eases out the recording and storing of financial transactions processes along with the following benefits:
- High productivity with more rate of investment (RoI) in the long run
- Automated accounting processes – invoicing, billing, etc.
- Processing huge financial data reports within minutes
- Easy access of data at any time or location
- Improved accuracy and precision
- Improves sustainability with paperless working
- Real-time reporting
- Automatic updation of tax regulations
- More accurate financial forecasting
With this, let’s understand what features you are missing out by not using accounting software.
1. Cloud-based Benefits
Using cloud-based technology, you can access and process the data anytime and anywhere with an internet connection. Though you can access some data offline too, the processing part requires internet connectivity.
This feature keeps the companies with accounting software financially healthy and focused especially during the Covid-19 pandemic which shifted the working to remote locations far away from office. The most important ease with the cloud-based accounting software is the cloud data storage space which leads to zero storage space costs and high productivity.
Without the accounting software you’re also missing out working with the real-time data which makes faster decision making possible without any geographical restrictions. You can also connect the accounting software with other cloud-based solutions.
2. Easy Connectivity
The accounting software also helps businesses work seamlessly with essential apps by connecting with those apps smoothly and effectively. It is useless to manually enter all the accounting data and then re-checking them. You can connect your accounting software to relevant business tools for easy accounting practices.
For this, make sure your accounting software has a robust API which is essential for multi-app connectivity. This feature keeps you updated with your accounts details and metrics anytime through an app with just a click. Such real-time connectivity and monitoring isn’t possible without the accounting software.
3. Direct Bank Connectivity
With the usual accounting methods, maintaining banking operations is a cumbersome human required task. But the accounting software is usually equipped with a direct bank connect feature which conducts e-invoicing and wires money electronically and updates you with every bank transaction.
Even if you have different bank accounts or international accounts, the accounting software provides such connectivity too. Also, you can link your credit and debit cards, PayPal, etc. accounts for monitoring and making easy transfers without any physical movement to the banks.
4. Easy Scalability
It is not important to have a fixed number of transactions every year or month. A huge company can have fewer transactions than a small company. Further, the number of transactions define the scope for your general ledger and other accounting tasks.
The accounting software has an in-built feature of general ledger architecture which allows the businesses to scale easily. Also, businesses with budget issues have the option of switching to a higher version of the accounting software when the scale rises. This provides flexibility in managing the business when scaling.
5. Automated Accounting
When it comes to accounting software technology, it is obvious to expect faster, accurate, and easier accounting operations, And the key to this is automation.
The accounting software provides the users a smart automated system to process their daily transactions and other accounting tasks like Batch automation, event automation, customizations, invoicing and billing, scheduled job automation, updating to latest tax regulations, etc. This helps the businesses to easily manage huge transaction workloads without any physical hassle.
6. Data Security
Do you know that the accounting software protects your and customer’s financial data, from both the internal and external security threats.
There are many security features available with the accounting software like, two-factor authentication, validation criteria, and user permissions, which provide multi-layer protection of data from internal security threats. But without accounting software, you will need more physical security with huge costs of maintenance.
Digitization is inevitable and you cannot grow your business without evolving with the technology. Accounting software not only improves your accounting performance but also provides other benefits like, mobile app integration, bank connectivity, automated accounting tasks, free storage space with backup facility, data security and much more. Though the starting investment seems huge but in the long run it results in higher productivity, saving of various costs and huge returns due to competitive output.