Bookkeeping and accounting is as old as the first businesses ever created, that is why most of the processes involved in handling budget, expenses, and payments have barely changed over the centuries. Thanks to advances in technology, however, the tedious processes in sales, customer and employee management, billing, and taxes have become easier through bookkeeping applications and accounting software.
If you are a new subscriber to an accounting software provider in Singapore, it is important that you understand the basic modules, types, and implementation involved in the package.
Accounting Software Basics
Bookkeeping or accounting software is a type of information structure system that simplifies the collection, management, storage, retrieval, and reporting of financial data. It is not only used by a finance department’s bookkeeper, but it is also accessible to financial officers, auditors, tax agents, regulators, and other employees.
Any accounting software provided by a third-party company in Singapore is composed of the essentials such as ledger, accounts receivable, accounts payable, and payroll. However, each part is also made up of several features which are part of the practices of recording, analyzing, auditing, and decision-making when it comes to finances.
The accounting software is usually provided by another company in Singapore, but it can also be an in-house software developed by the client company and the host company, or cloud-based for small companies that cannot afford to hire bookkeepers and accountants.
Accounting Software Modules
The components of the accounting software are called sections or modules. The modules are the following: general ledger, billing, sales order, purchase order, accounts receivable, accounts payable, inventory or stock, and bookkeeping that are used to balance the accounts application in Singapore for clean accounts. The other modules also included in most accounting software are the following: expense, payroll, debt, timesheet, bank feed, late payment, value added taxation, statutory holdback, purchase requisition, reconciliation, reports, and electronic payment processing.
Look for these modules when subscribing to an accounting software service provider in Singapore:
• General ledger or the accounting record of the company. This includes the accounts receivable, cash, inventory, land, investment, and equipment to make financial reports or statements such as expenses, revenues, assets and liabilities, and equity.
• Billing is the process for creating or sending invoices to the customers and clients. It simplifies the process of collecting information for the invoice, creation of the invoice, and the issuance of the invoice. With an accounting software, billing is more accurate, fast, and efficient. The application even includes electronic billing and collection of services and bills using other methods.
• Sales order is the document that a company must send to the client or customer before the latter receives the goods and/or services. This is different from the quote that is usually given to a prospective client/customer and the purchase order which is sent to a client/customer who ahs finalized the purchase. Sales orders can be printed easily and then sent to the customer to confirm sale of items for a specific amount.
• Purchase order printing is also easy with an accounting software. This allows the company easy control of the sales and purchase of goods and/or services from the suppliers. The purchase order includes the type, agreed price, and the quantity of the goods and/or services.
• Accounts receivable refers to the money owed by the debtors to the company. Financial staff can easily track outstanding invoices from clients and never miss deadlines through the use of the accounting software.
• Accounts payable is the reverse of accounts receivable. It is the money owed to the creditors by the company. Tracking is also easy with the accounting software to ensure that the company does not miss payment deadlines.
• Inventory refers to the goods sold that have not yet been purchased. Inventory is treated as an asset under the accounting software features and can be monitored easily. The staff can also monitor the different inventory based on the stage of production such as raw, in-process, and finished merchandise.
• Bookkeeping is easy with the help of an accounting software because the staff can easily record and track all the financial activities of the company. Most errors in record-keeping often occur in the tedious process of manual bookkeeping, but this is minimized with the use of an accounting software because the bookkeeper will be able to check for minor corrections easily.
• Payroll refers to the number of employees in the company and the amount of money they are owed. Payroll is easy with an accounting software because the staff can easily track the salaries, bonuses, taxes, and benefits of the employees.
• Reports are customizable and easy to understand with the use of an accounting software. Employees can create customized tables and graphs for presentation and analysis and help the management in making decisions based on the financial standing of the company.
Accounting Software Types
There are various accounting software types for any type of company in Singapore. The core features are mostly present, but high-end accounting software include more features depending on the financial processes and the needs of the company.
Personal accounting software is recommended for entrepreneurs based at home, while low-end market software is for businesses that market single-entry products. A company in Singapore with a double-entry system may opt for a mid-market accounting software because it includes databases, reporting, and configurations.
High-end market accounting software have more customizable features for more complicated processes, while horizontal market accounting software are recommended for companies that want custom-built programs. In some cases, hybrid accounting software is recommended for corporations that can afford the equipment and have offices overseas.
Accounting Software Implementation
Implementation refers to the installation and configuration of the accounting software. The third-party provider in Singapore must assess the needs and processes of the company before recommending which type of software should be used and which features should be included.
Large corporations for example will need better data retrieval processes that include taxes and bank reconciliation. These companies will also need customized reporting and integration with other existing systems.