What is accounting software?

published: 2008-06-01

Essentially, accounting software refers to computer programs that are designed to perform accounting operations, and in effect, "do the books". There are many different kinds of accounting software packages that cater to a wide variety of needs, and it is thus vitally important to buy the right bookkeeping software for your business.

The most basic accounting program is a single-entry system – also referred to as a personal finance manager – that facilitates the writing of cheques and the keeping of records. More complex tools such as general ledger, accounts receivable and accounts payable are featured in double-entry systems, whereas sophisticated business software programs carry out a range of functions including payroll, inventory, invoicing, fixed asses, support sales analysis and time-based billing. Enterprise resource planning, or ERP software, is the most complex accounting system, as it is highly customisable and designed to cater to company-specific processes.

While some software packages are developed and designed by the companies using them, others can be purchased as comprehensive business accounting solutions from financial software retailers such as QuickBooks.

The main features and functions of business accounting software programs involve accounts payable, accounts receivable, payroll and trial balance. Below, find brief descriptions of some of the main components of business accounting software:
 

• Accounts receivable: This is where a business keeps a record of all the money it receives.

• Accounts payable: This is where a business keeps a record of all its bills, the money it owes, and where payments are managed.

• General ledger: This is what is commonly referred to as "the books".

• Trial balance: This is where the business can compare debits and credits, and ultimately, establish whether it is running at a profit or a loss.

• Billing/invoicing: This is where invoices are generated before they are sent out to the company’s customers or clients.

• Stock/inventory: This accounting tool helps businesses to manage their inventories.

• Purchase order: This is where a business orders its stock or inventory.

• Sales order: This is where a business keeps account of customers’ orders in order to populate its inventory. 

Additional accounting software functions include debt collection, business expenses, inquiries, payroll software, financial reports, timesheets and purchase requisitions. When deciding which software solution to choose for your company, it is essential to understand your unique business needs and hence, to select a program with the appropriate features.

With more than 45 000 subscribers in South Africa alone, QuickBooks offers a comprehensive range of accounting software packages – one of which is guaranteed to suit the needs of your business. Why not contact us to discuss your business’s unique requirements today?

Benefits of a sound accounting system for your business

published: 2008-06-01

The advantages of using an efficient accounting software package to manage your business’ books are manifold. The most obvious of these is that a good bookkeeping system will enable you to track your invoices, manage your cash flow, and ultimately, establish whether your company is running at a profit or a loss.
   
To put it simply, a comprehensive accounting software program will save you both time and money as it facilitates the growth of your business. More specifically, it will help you to: 

•    Store information systematically and accurately.

•    Keep your finger on the pulse by allowing you access to your business’s financial information at any time. You will also be able to compare your company’s current financial status with information from previous months, and so gain a useful overview of the direction in which your business is heading.

•    Improve your invoicing system – good small business accounting software will help you by not only enabling faster and more efficient invoicing, but also by allowing you to track your invoices more effectively. Such software will calculate appropriate taxes and any reduced rates automatically, leaving you with more time to concentrate on your business. What ’s more, your invoices can be tailored to suit your company perfectly.

•    Track and keep good record of your receivables and customers. Business software can also help you to stay up to date with overdue payments, and even generate payment reminder letters for your customers.

•    Calculate taxes quickly and efficiently. In addition, you will be able to compare the current year’s tax with the previous year’s tax amount, which will give you valuable insight in terms of what to expect for the next year. 

What is so great about QuickBooks accounting software?

Our highly efficient and customisable accounting solutions work for 3.7 million subscribers all over the world – 45 000 of whom are South African. As the top international seller of tailored accounting software packages, QuickBooks is guaranteed to have the perfect bookkeeping system for your business. Here are some of the reasons why:

It will save you time, and by implication, money. QuickBooks software makes keeping up with tax and VAT requirements, legal updates and revised accounting forms a pleasure. Our intuitive and systematic structure will guide you from installing the software through to doing everything that is necessary for you to keep your business’s books accurate and up to date. What’s more, you can view your company’s financial information at any time, and so, keep your finger firmly on the pulse of your business!    

It grows with your business. The celebrated QuickBooks range of financial software caters for all types of companies, from home-based businesses to large firms. The really great news is that it is perfectly compatible with other software packages such as Microsoft Office, and as your business grows, you can upgrade to a more complex package without hassles or having to start from scratch.

Contact us today to discuss your software requirements. We’re sure to have the ideal accounting software package to suit the needs of your business!

Understanding basic accounting

published: 2010-06-04

Accounting forms the foundation of every successful business. Every business needs a system to be accountable for the utilisation of funds in order to keep its cash flow in smooth operation. The universal system used to keep financial records and reports of all funds spent, received and owed to a business is basic accounting, and keeping this system streamlined requires careful planning and implementation of processes.

Even the most basic accounting systems need the stability of meticulous processes to be followed. Financial records are used to determine how well or poorly a business is doing in terms of profit and loss and need to be kept up to date and accurate for a number of reasons, namely:

• to keep track of monthly and annual spend
• to help financial managers plan an effective company budget strategy
• to show shareholders and donors how every cent was used
• to avoid losing money due to mismanagement, corruption or theft

A software suite such as QuickBooks accounting software allows businesses to manage and keep track of all fundamental financial records with its DIY basic accounting features. Each program offers a comprehensive accounting system to help businesses balance their books. Continue reading to learn how your business can benefit from QuickBooks accounting software.

Basic accounting is crucial to your business

An effective basic accounting system acts as an unseen supervisor or manager, ensuring that all procedures are running smoothly in order to achieve financial success. The following financial statements form a basic accounting system and are essential to the financial success of any business:

• Income statements – Records all funds that are received by a business such as generated sales, fundraising, donations and grants.
   
• Expenditure reports – Records all funds that is spent by a business such as operating costs, office rent, costs for stationery, workshops, media production, catering and bank charges.
   
• Balance reports – These are records that state the remaining funds that are left over at the end of each month, after all expenditure has been paid to its relevant parties.

Managing expenses and income statements is easy with the help of a basic accounting system. QuickBooks accounting software provides you with the ideal software program suited for your type of business. While QuickBooks SimpleStart is designed for small to medium start-up businesses, QuickBooks Pro offers enhanced features for established companies with complex financial statements and QuickBooks Premier provides all businesses with the assurance of an advanced accounting system.

QuickBooks accounting software provides a simple solution for basic accounting

Running the financial system of a business can be challenging at times, especially if you haven’t spent years mastering the accounting language. While employing a full-time accountant will help your business achieve financial success, it may also be expensive to maintain a qualified accountant’s salary. QuickBooks accounting software is ideal for small-to-medium businesses because it employs a solid accounting structure that can help you to streamline your businesses financial recording processes with quick and effective solutions. With QuickBooks SimpleStart, QuickBooks Pro and QuickBooks Premier, our easy-to-master software programs cater to the needs of every type of business.

Basic accounting principles and guidelines

published: 2009-12-18

As in many other industries, the accounting industry dictates that its members all strive to adhere to certain principles and, thereby, provide a similarly high level of service. There are a number of professions such as the medical, law and accounting professions that deal with the intimate aspects of people’s lives. In order for these professions to function correctly, it is vital that the public feel confident in the profession as a whole.

This set of basic accounting principles and guidelines has been created for accountants to follow. While there is no definitive list of accounting principles, members of the industry have come to a general consensus regarding which accounting principles will encourage a uniform level of quality amongst accounting professionals. In fact, during World Accounting Week (an annual event organised by the International Federation of Accountants) this year, there was a forum discussion regarding basic accounting principles and their application.

QuickBooks accounting systems is designed to give accountants and small business owners the tools necessary to adhere to the generally accepted accounting principles of the industry. Peruse our selection of accounting software solutions for more information on our individual products.

What are the basic accounting principles and guidelines?

The generally accepted accounting principles (GAAP) are a useful tool to be used by accountants worldwide. While accountants are not legally bound by GAAP (they are, however, bound by certain other accounting laws), they are able to refer back to these principles to ensure that they are providing the correct level of service.

GAAP is considered to include three sets of rules:

1. The basic accounting principles - These accounting principles and guidelines form the basis from which more complex and detailed rules are created.
2. The rules set out by the Financial Accounting Standards Board (FASB) – These are in-depth rules and regulations that dictate accounting policy in greater detail than the basic accounting principles.
3. Generally accepted industry practices – These are the standard accounting principles that are followed industry wide.

Companies that make their financial documents available to the public are obligated to adhere to the GAAP during the preparation of these documents. Below are five categories of accounting principles that South African accountants follow.

• Identification accounting principles

In order for an accountant to accurately record the financial transactions of an entity, the entity’s physical parameters must be identified. The entity is usually a business or corporation, and identification separates it as a financial entity from its owners, employees, clients, affiliated groups, shareholders and any other parties that may be connected to the business.

• Significance accounting principles

In order for accounting to be effective, its practice must be predictable and reliable. By implementing an accounting system to be used over the course of several financial periods, a business can accurately ascertain whether it is making a profit or a loss.

• Function accounting principles

Accounting principles are used to tackle functional problems such as when to record a business’s incomes and expenses. Certain principles make it clear that revenue should be recorded as and when it occurs, while others such as the matching principle recommend that investments and profits from these investments should be recorded in the same time period. This makes it simple for investors to see when and how their money is used.

• Features accounting principles

The principle of periodicity allows businesses to treat any period as a financial period for a business. While a business may not start or end on a specific date (since the business continues indefinitely), the principle of periodicity allows accountants to present records as if this specific period was the only one of importance.

• Considerations accounting principles

The final group of accounting principles offer guidelines of how to present accounting information and the financial status of an entity. These are important in order to provide an accurate picture of the entity’s financial statement as it really is by treating assets in an orthodox manner.

Use QuickBooks accounting to bring your business in line with basic accounting principles

While there is greater demand for large accounting firms to adhere to accounting principles, it is highly recommended for all accountants to follow the same guidelines. By doing so, you can rest assured that anyone who sees your accounting records will be able to understand them easily.

QuickBooks accounting software solutions take the hassle out of recording your income and expenses, giving you the freedom to concentrate on keeping your finances in line with international accounting principles.

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