Accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarising, interpreting and communicating financial information. Accounting provides information on the resources available in the firm, the means employed to finance those resources and the results achieved through their use. Though termed and categorized as to a finance function, accounting assists all material facets of a business.
The broad categorization of aspects addressed by accounting for a business entity can be segregated to internal and external. The former aides the internal functioning of a concern which includes financial accounting, cost accounting, MIS and budgeting etc. The latter, however, concerns the external factors like risk assessment, strategy development, and statutory compliances. The following enumerations briefly explain the types of accounting commonly practiced by various industries.
- Financial Accounting
- Management Accounting
- Human Resource Accounting
- Cost Accounting
- Forensic Accounting
From day end cashbook reconciliation & single entry system to Double entry and bookkeeping, ground rules still remains the same. Fundamentally accounting has been working on the very basic concepts as it was practiced ages ago. However, there has been an ocean of change in how these fundamentals are executed for the betterment of a business entity.
Undoubtedly, manual accounting is an effective tool for a business, but the ability of accounting software cannot be overlooked. From hardbound leather jacketed ledger books, enterprises have shifted to intangible Accounting Software. It is not the tangibility that has led to the wilful acceptance of accounting software; rather it is the efficiency and effectiveness. Software simplifies the process of accounting, helps in reducing investment and makes productive use of resources. Accounting software with their every use tends to eliminate critical bottleneck with less time consumption and cost-effectiveness making it ideal system working in the organisation.
The recent application of VAT in Dubai has given a hard time for companies to comply with the requirements of law. The expertise of a professional blended with accounting software will produce comparatively better results. With proper expertise and guidance, an entity can overcome such hurdles and smooth transactions and tax payments can be made. Professionals using the traditional system would not be at a state of ease with this tax revolution unless accounting software is not brought into work.
Beyond Numbers has always kept a keen eye over the issues that affect the community and catered services that are matching up the requirements. Following are the features offered by accounting software:
Rest apart, accounting is the core function that accounting software has to provide. Journalising, ledger posting, maintenance of day book, Bank/cash book, reconciliation, sales book, purchase book etc. are the basic requirements of accounting software. This software is designed to produce financial information in compliance with the applicable financial reporting framework. For example, accounting in Dubai is done in compliance with IFRS. This automated system will process the data to produce IFRS compliant report.
While finalization of financial statement manually, there are chances that certain aspects remain unaddressed. Designed to assess information comprehensively, accounting software leaves no areas unchecked. Further, the reporting of financial statements is contemporarily done in XBRL (eXtensible Business Reporting Language) formats. Accounting software helps those charged with governance to comply with the applicable standards of corporate governance.
2. User Interface
Interaction has always been determinant to the smooth functioning of a business. Be it our clients or employees, if we don’t understand each other well, the journey together won’t last long. Same goes with software and machines, if it is easy to operate effectively & efficiently produces the desired results, you are all set. The accounting software should be compatible with the needs of the user.
MIS Reporting: MIS stands for Management Information System. Business decisions are materially based on the facts and statistics reported, rather than assumption. Well designed and integrated accounting software assists in the preparation and presentation of financial and non-financial information to come to a productive conclusion. Correlations, trend analysis, variances are some of the tools used in MIS reporting. The automation of accounting provides management with the accurate, systematically arranged information for appraisal. On the basis of past data and forecast of the management, accounting software assists budget preparation. Such budgets act as a planning tool to the entity.
Taxation is an integral part of accounting. However, due to the volume of business and a variety of transactions, there are chances of error. Employing accounting software ensures accurate and consistent compliance with applicable laws and regulations on a predefined basis. Further, the tax returns are to be filed in a prescribed format which in itself is cumbersome. Accounting Software offers utility programs through which financial information is submitted in prescribed format.
4. Enterprise Resource Planning (ERP)
Scarcity demands optimum utilization of resources. With growing competition, an enterprise cannot afford wasteful disposal of resources. Optimum is not just the maximum output but the utilization of resources to generate maximum value to an enterprise. Integration of various modules of accounting software creates a synergy providing the best-suited options for a given task.
5. Cost Accounting
On the basis of predefined criteria being cost centres, cost drivers, process, location, accounting of inventory, work order etc. cost records are made. Incorporation of all above factors in manual accounting will make it a cumbersome process. However, accounting software makes it a lot simpler. A single entry gives effect on all relevant aspects of a transaction. This consequently generates information for operational efficiency, budgets, price fixation, tax assessment, normal and abnormal loss, variances and other related matters.
6. Inventory Management
Inventory management requires a lot of precision as it directly affects the working capital of the business. With its inception from work order placement followed by delivery, storekeeping, WIP, process costing, joint product, and by-product costing, and finished goods, all these aspects require an accurate and timely response. Accounting software makes things handy for the user and streamlines all such inventory related matters which consequently simplifies the complex process. Further, it helps in maintaining the margin of safety, inventory valuation and even non-financial aspects associated.
There are various types of accounting software which can be critical for the proper administration of the organisation. The business entity, on the basis of its requirements, decides which accounting software should employ. Accounting software with its unique attributes is used in diverse conditions to generate maximum benefit. Some of the available accounting software in Dubai and other parts of UAE are Tally.ERP9, SAP, Quickbooks, SAGE, ORACLE Fusion.
The number of options may create turmoil in which software to employ for accounting. The entire success story lies here as the user can experience substantial improvement, or it may be a complete disaster. Various issues like the response time, utility, modules, scalability, updates, client support, after-sales services, security of data, backup and recovery, price etc, should form part of the checklist for anyone who buys accounting software. The product you choose surely makes a difference, as all your finances are to be dealt with the same accounting software. A robust system for your accounting can turn the entire game in your court. Beyond Numbers having specialization in the field also offers such software as a product. Owing to the uniqueness of a client’s business and needs, we also develop customized accounting software. We expertise in the field of accounts, finance, and law, assisted by the efficiency, accuracy, and precision of its accounting software. Beyond Numbers is committed to delivering nothing but the best to its clients. While providing onsite accounting services, we also welcome outsourced accounting function.