Managing your business finance is the most challenging task. Using an accounting app is the right option to track the money flowing in and out of your account. Even if you have accountants, the app is important for simplifying their tasks. It lets you enter data within the shortest time. You can do everything from invoicing to tracking payments with a few clicks. However, depending on the vendor you have chosen, there is a variation in features.

Why do you need an accounting app?

The biggest benefit of running an accounting app for small businesses is efficiency. There is no need to copy-paste data from different spreadsheets. Your transaction details will be safe in a single place. You may also check the amount you have invested for business purposes. The best accounting software has a dashboard to provide a real-time view of the important metrics.

Moreover, previous months’ transaction statements can also be compared to the current ones. Besides, you can analyse sales trends, business growth, and other details to make the right business decision. Use the accounting app to make schedules and pay bills. Thus, accounting software benefits your business in various ways.

Features of your accounting application

Some common features of free and premium accounting apps are-

Payment processing

Some accounting systems let you pay invoices online. Simply click a button and manage the invoices to be sent. Your employees do not need to process checks or make bank deposits manually.

Accounts payable

It is not easy to always track the amount you own for your business. However, technologically advanced apps simplify the process. They manage the outflow of your funds efficiently. The software tracks every detail of your purchases and calculates the owed amount. But the way it is done depends on the software or app you have chosen.

Some businesses cannot manage the credits their vendors have handed out. As credit memos are important, the system tracks them and reduces costs. 

Automatic invoicing and payment–

Due to automatic invoicing, you can avoid negative effects on your revenues. The best applications also help you set late reminders and create automated statements. So, they will act like a collection department by reminding customers of bill payments.  

Payroll

A sophisticated accounting app presents you with payroll modules. From hour-based calculation to wage processing, the app manages everything. Suppose some employees are paid by the hour while others have a fixed salary. Nevertheless, your app will handle various pay schedules and compensations (like commissions, bonuses, and profit sharing).

Some accounting applications also facilitate direct deposits because many people try to deposit their paychecks into their bank accounts. Premium software also enables you to schedule payment with this direct deposit option.

Another advantageous aspect is that tax calculations can be automated easily using the application. For instance, the software can handle major deductions, tax tables, and relevant forms. It can also calculate the insurance compensation of workers. The best-automated systems make payments compliant with tax deadlines.

Banking

Accounting software provides you with an option for linking your account. You can import real-time data and make payments. If you have multiple bank accounts, the application tracks them accurately. It also reconciles them and integrates general ledger functionality. 

The best accounting modules help you manage several check payments and save precious time. You may also receive notifications on duplicate checks and check voiding issues.

How do accounting apps help you comply with GST?

You will get the best GST accounting solutions from the feature-rich software. 

  • File your data conveniently– You can keep track of your financial details, taxes, inventories, and invoice generation according to the GST guidelines set by the Australian Taxation Office. The most advanced applications let you file complicated data. There is no risk of repetitive entries, and your data will be safe.
  • Accuracy and speed– The application minimises the error risks and maintains data accuracy. Your information will be up-to-date, which will be a time-saving option for your business.
  • Cost-effective– With the best software application, you can manage everything from financial activities to tax filing. You can reduce manual effort and paperwork.
  • Easy data access- The documents and data saved in your system are accessible from any place. You can check cash flow and verify your data easily. The software lets you do real-time payment analysis.
  • Customisation option– The GST filing feature of your accounting apps automates your tax-related processes. Some applications are customisable to your needs.

Conclusion

An accounting app is a great resource for every business. It simplifies the task of tracking and storing your transaction details. You can easily access your data and automated reports. As a start-up, you may choose accounting apps for free and later upgrade the application. Make the best use of your accounting software.