10 Best Accounting Tools to Monitor Business Success
As businesses expand, managing accounting transactions can become complex and time-consuming. The sign of a successful business lies not only in the profits and gains but also in the company’s ability to track and manage its expenses and accounting. To simplify this process, management seeks tools that can monitor and control accounting information in real time, enabling informed decision-making for business success and growth. This necessitates a revamp of the accounting system to ensure seamless financial accounting, reviewing, and approving of all transactions.
Modern accounting has undergone a transformation with the emergence of user-friendly accounting services. Financial Accounting software effortlessly records daily transactions, calculates totals, stores digital copies of receipts reconciles bank accounts and creates financial statements. These solutions can integrate with payroll, inventory management, and fixed asset tracking, and can be deployed on the cloud for greater accessibility. Any successful business must and should evaluate options to meet its specific requirements and ensure optimal accounting standards.
Best Accounting Tools for Businesses Success
Over time, numerous financial accounting tools have been developed to facilitate business management and foster success. The key is to identify the optimal accounting tools for small businesses. To aid in this endeavor, we have compiled a list of some of the most effective options for management to evaluate:
- Invoicing Software: Invoicing software is a crucial component of financial accounting software. Invoicing or rather simply called billing software is not built into your accounting software, consider acquiring a separate invoicing system or billing software to make invoicing much easier. This tool facilitates the efficient and effective collection of customer payments, sending reminders, tracking aging, and meeting statutory compliances.
- Business Credit Card: A Business credit card offers the flexibility to make finance purchases by different business heads according to their needs. The company credit card enables tracking of details and accounting while providing higher spending limits tailored to the business’s needs. This tool saves management time and offers a systematic process for approving expenses.
- Financial Calendar: With several accounting deadlines and regular meetings with various stakeholders, an economic calendar tool is essential for marking critical deadlines and due dates for accounting services’ close and statutory requirements. An Economic calendar also forecasts business developments and plans. An Economic calendar helps track the business timelines and ensure safe and timely deliveries to the clients and customers.
- Expense Tracking Software: As business volume grows, organizing and streamlining receipts, invoices, and supporting documents become a constant challenge. An Expense tracker helps manage the large volume of expenses and create an accurate and easy-to-read cash flow statement and a report of necessary expenditures. This tool simplifies the monitoring of all expenses for efficient management. An expense tracker simplifies the order and accurately tracks all expenses to mitigate any errors when measuring expenses which makes cash flow analysis much easier and comprehensible.
- Budgets, Forecast, and Cash Flow Statement: Budgets and cash flow statements establish plans for a business’s future, and forecasts use past historical data to predict a company’s future financial outcomes. Both tools help management keep costs under control. A Cash flow statement estimates how much money a company will make and spend at any given point, an accurate and critical cash flow analysis enables management to take the appropriate steps to ensure cash outflow does not exceed inflow.
- Standards in Accounting: Deployment of standards in accounting ensure error-free calculation and recording. Accounting standards include reconciliation templates, journal templates, AR/AP aging reports templates, AR/AP balance confirmation templates, cash flow templates, expense report templates, travel statement templates, and income and balance sheet templates. These standards in accounting help maintain the consistency and continuity of business flow, making the process much more elegant and robust.
- Accounting Ratios: Accounting ratios are crucial tools for analyzing financial statements. They provide a comparison of two or more financial data that analyze a company’s profitability, strength, and financial health. Commonly used accounting ratios include profitability, leverage, and liquidity ratios such as quick ratio, debt-to-equity ratio, working capital ratio, price-to-earnings ratio, earnings per share, return on equity ratio, and profit margin.
- MIS & AIS: The accounting information system and the management information system are crucial tools in accounting services that make the management of financial accounting easier. The Accounting Information System (AIS) is a computer-based system that organizations use to make critical financial decisions. An AIS collects, processes, analyzes, and stores a company’s financial data. It retrieves and reports such data to users, including accountants, consultants, financial officers, CFOs, auditors, and government tax authorities. The Management Information System (MIS) is another tool used to analyze and make decisions using data generated by business operations. The management information system forecasts possible trajectories of the company and provides deep insights into the business flow.
- Physical Stock Taking: Physical verification, such as cash counts, periodic inventory counts, and asset counts, is an effective tool for managing assets and understanding their location and condition. Stock management is essential for any company or successful business.
- Audit: Auditors examine financial statements, management accounts and reports, financial accounting records, operational reports, revenue reports, and expense reports by conducting accurate audits and financial data analysis holding compliance with certain standards. This process is often done through internal audit, Sox testing, and compliance audit.
SBS Global is a certified company providing Outsourced Financial Accounting Services, Compliance, Payroll, Company Secretarial, CFO Services, and Staffing Services to small, medium and large organizations since 2007. With expertise in various industries and years of experience we bring you the deep insights that help your company to sustain, grow and expand in a rapidly changing legal landscape.
Effective Internal Control procedures require managing both Internal and External risks. Internal risks are those that arise from within the organization, while External risks are those that come from outside the organization such as: