Finance is the uppermost aspect of every business for many decades. If we take a look at the record of past 20 years then we can observe that Financial Sector has grabbed the Extreme Growth. The Finance Sector got this Locus due to the fact that Bookkeeping Supported the large Firms and Vendors to make their Records of Trade and Commerce properly arranged. Bookkeeping is the earliest name of today’s term “Accounting.”
However, Bookkeeping and Accounting are the same even when they differ in their way of recording. Many people consider both of them as a synonym. The basic difference they have is Bookkeeping is basically concerned with the recording of financial dealings Accurately. while Accounting Takes care of particular data or report, analyzing, interpretation and so on. Let’s take forward steps toward Its functions.
Bookkeeping is the production of “Luca Pacioli.”He is recognized as a Father of Bookkeeping.
Bookkeeping takes place in many new forms today. The software is one of them. The software is the most growing field related to the Bookkeeping. Every business whether it is small or large, all are taking benefit of software in order to make their business and their records more effective and efficient. Software mainly makes better work than the manual and contributes better results. It will not be a false statement if we call Bookkeeping software as a backbone of systematic financial records. As it’s work is giving proof at all. According to a recent survey, “84 percent of businesses and vendors are operating the Free Bookkeeping software worldwide and feeling much satisfying in compare to manual accounting.”As it is contributing the best features which are helping the firms in achieving unbelievable growth.
Let’s have a look of Functions of Free Bookkeeping software:
- MAINTAINS SECRECY -The basic and the main thing of Bookkeeping software is it is providing the full security towards the data. The user has not to worry about the data as it is totally in safe folders with the help of passwords, patterns, and lock. Some software also provides the unique code which helps in maintaining the whole system. In short “It is maintaining the secrecy.”
- PROVIDES SECURITY -Cloud-based Bookkeeping software is providing systematic management of data through cloud computing which decreases the chances of blockage. It provides the huge storage to store the data, and the main thing is all the data is online not offline due to which there is no need to concern about the handling and managing of all reports and data. We can operate all work online by just do log in through our account. Every user has their unique ID.
- ANALYZING – Bookkeeping software provides the full access to analyze our accounts and to see the clear differences of profits and losses, incomes and expenditures. It helps the user to check and to take the corrective action in future and to estimate the future conditions as well.
- REPORTING FUNCTION – Bookkeeping software contributes the Report function which actually gives you the Bird’s eye view of your firm. This function takes place in the customized form, It gives you the report whether in detail or in a summarized way, as per your need. It works as a bridge between you and your important Resolutions.
- AUTOMATION – Its Automation function consider as one of the most Cooperative functions. Previously, only an expert Could have maintained all the accounting records, but now A person holding a little knowledge can also operate this software Due to the fact that all transactions are categorized automatically. It saves the time as well as penny which we give to the expert for working.
- AUDITING FUNCTION – Bookkeeping software provides the Audit feature. It helps the user to Audit all the transactions and gives the liberty to correct it. It actually decreases the chances of errors in a particular way. An individual can use this function as per his need, and in case of no use of this function he can also turn off it.
- PAYMENT PROCESSING- We can make payment while operating the software. It gives you the portability access, whether from Mobile or Computer system. We can prepare the Invoice for a customer in just a few minutes and can send it to them on any social media platform too.
- AUTOMATIC CALCULATION OF DUTIES AND TAXES – We can do calculations of our all duties and taxes like GST. Because GST is one of the complex tax and to do a calculation of its percentage according to every product is such a tough task but Bookkeeping software make our work simply due to the fact that it automatically calculates the percentage of taxes and gives us the final report for further process.
- DIFFERENT FORMS FOR ANALYZING – This software has the capability of converting the data in different forms for analyzing the reports such us, we can convert the data in a graph, picture, pie chart, bar chart etc.as per your need. We can also do use of this data for presentation and sharing.
- INVENTORY – Inventory is one of the basic factors of a business.how can we forget it while maintaining records, as in manual accounting we do the calculation of inventory, in the same manner, we can manage the Inventory(stock). It has this feature available too.
- PAYROLL – Yes, I can understand. You must be thinking that why I used this term here. But the fact is this function is also performed by the invoicing software. Attendance of employee, their breaks, leaves, half leaves, sick leaves and so on. All the things can be done with this software by its amazing features.
- WORK STATUS – How much work have you done? This software takes the responsibility of calculating this task too. Isn’t it too interesting?
- PURCHASE ORDER PROCESSING- A business is nothing without the involvement of purchase and sales. This software does a full calculation of purchase order and maintain the record of it and provides the notification time to time-related to this topic.
- ACCOUNTS PAYABLE – Paying bill is not in the category of likes even then we have got to pay it every time we do trading, but sometimes the thing actually happens is we forget the date of payment when we have to pay. But Bookkeeping software notifies you as well as maintains the Systematic records of all payment Correctively as a whole.
Advantages of having bookkeeping software
There are lots of advantages of having bookkeeping software with you, we all know that the level of competition amongst all the businessmen is very high so we should have some competitive advantage with us. In this article, we also talk about some advantages of having bookkeeping software which is as follows –
1 Cost saving – we all know that if we are using bookkeeping software in our shop or business is helpful in saving the cost of our business. If you did not understand how then I will tell you the reason, if we are using bookkeeping software instead of manual bookkeeping then the cost of maintaining record it goes down. It means we do not have to buy books of accounts for maintaining our financial records, which clearly a cost-saving advantage for us.
2 Time-saving – The second advantage of having bookkeeping software is, It will save our time. You know how? Let me explain you, for example, if we are using manual technique of bookkeeping and if we have to write the same thing repeatedly then it will be very time consuming for the accountants because they have to look back in the books and then they have to the right the same thing which he wants to write so it will be time-consuming for him. So if we are using bookkeeping software, so we have the advantage of copy paste with us.
3 Space-saving – The third advantage of having bookkeeping software is we can save our space. Yes, friends, we all know that the books of accounts of every year take too much space in our office which makes our office congested. So if we want to save the space of our office, we can use bookkeeping software which will help us to save our all data in the hard drive of our personal computer (pc).
4 User-friendly – The fourth advantage of having bookkeeping software is, user-friendly. Yes, friends, I’m right because we all face some problem when an accountant is on leave. We all know this the bookkeeping is not a simple task and if we do not have knowledge about accounting than it is the serious problem because we can not maintain it without the support of an accountant. So, if we use bookkeeping software in our shop or business, it will be very beneficial for us because it has a user-friendly interface which is easy to understand and even if our accountant is not there we can maintain our books of accounts.
5 Mobility – The most important advantage of having bookkeeping software is the mobility of our data. In the manual accounting we cannot carry our financial data everywhere and every time, because we all know that the wait of books of accounts may be heavy and it is also look so bad if we carry books of accounts with us every time. If we use bookkeeping software, it will be very convenient for us because many companies provide mobile apps which will be very helpful for us.
So, these are some advantages of having bookkeeping software with our business. There are so many advantages are left which I’m not covering in this article because I cover some most important advantages which are helpful for all.
Disadvantages of having bookkeeping software
Yes, friends, there is also some disadvantage in having a bookkeeping software. In this article, I’m also covering some disadvantages of having bookkeeping software which is as follows-
1 Price – Sometimes the price of some bookkeeping software is too high which is not affordable for small businessmen and many time they deny to use bookkeeping software.
2 Need skills – The second disadvantage of having bookkeeping software is, you should have some computer skills if you want to adopt bookkeeping software in your business or in your shop.
3 Yearly support – The third disadvantage of having bookkeeping software is, you may need yearly support or maintenance which may cost something.
So, these are some disadvantages of having bookkeeping software, and before adopting bookkeeping software in your company, you have to think about this demerits of bookkeeping software.
What is cloud bookkeeping or accounting?
Now, the new trend in bookkeeping is on peek. In the last 10-15 years, the new thing is added to the market which is cloud computing. With the help of cloud bookkeeping, you can use the power of the internet which will help you to save your all financial data, and even you do not need to save your data in your hard disk. So, if you are looking for something more interesting, then you can go for cloud bookkeeping also.
So, what we have to do now?
As per my knowledge if we compare both the things advantages and disadvantages we can say that adopting bookkeeping software is good for our business because bookkeeping software provides us lot of things which we can not do manual. If we talk about the cost of booking software, so there are numbers of companies are available which provides us free bookkeeping software which is affordable for small size business owners also.
So, the above were the Functions, advantages, and disadvantages of Bookkeeping Software, apart from these there are also many more functions performed by this Software. Now, As a Business person Can you stop yourself by using Bookkeeping Software? Can you miss all these ExtraOrdinary Features which gives a huge Impact on your Business-life and Work? There are a number of Bookkeeping Softwares which contribute all the features and makes our work a lot of times easy in comparison to manual accounting. We must understand the relevance of Bookkeeping and should try one of Free Bookkeeping Software for our business.
So, friends, it is all about bookkeeping software. If you think it is helpful for you and you like it so please hit the like button and if you have some other knowledge about bookkeeping which I forgot to tell you then please tell me in the comment section and do not forget to share this awesome article with your friends.