How Accounting Software Works at The End of The Year

Towards the end of the year, every business will be engrossed in various activities that need to be undertaken, from next year’s strategy development, tax filing, and the most common financial statement preparation. Financial reports routinely prepared towards the end of this year are known as the closing report. Because usually, the company will archive and recapitulate financial records in the past year and then open a new report sheet in the following year.

The annual financial statements are part of the company’s key reports. This report allows companies to see a benchmark of their company’s performance over the past year. May the company make the right decisions for the next strategic step in the future.

By 2022, it’s time to use the latest technology to support workplace productivity. Preparing financial reports with accounting software is one of the tasks that can be accomplished by intelligently utilizing modern technology.

So, what kind of accounting software can help you in completing year-end financial reports?

Definition of Accounting Software

Reporting from HashMicro.com, accounting software has a function as an accounting system to simplify the work of accountants in managing accounts and streamlining financial, operational processes in a business. Later, you can automate cash flow management, financial statement creation, bank reconciliation, adjusting journals, invoice creation, and other work in accounting in just one software/application.

Benefits of Accounting Software at the End of the Year

Almost all companies have used accounting software to support their work productivity. Because nowadays, accounting software seems to have become a vital necessity for every business. Business owners realize that managing their finances manually does not help them achieve the desired efficiency.

Moreover, if you still use the conventional method at the end of the year, the target of financial statements that should close the books according to the deadline can risk becoming one of the factors causing losses. Therefore, with the presence of this accounting software, it is expected to make it easier for users with several other benefits as follows:

● Saving time

The phrase time is the most valuable thing that may mean a lot to an accountant. But with the presence of accounting software, you can reduce manual accounting processes that take a lot of time, such as bookkeeping, calculating asset depreciation, and other work.

● Real-Time

Busy contacting the finance division to find out the progress of the financial statements? With accounting software, you may miss those routines. Still, within the same app, you can view real-time financial information to help make better business decisions.

● High Accuracy

Doing financial analysis is often complicated and inconvenient, especially if you have many branch companies. Accounting software offers you a solution to find out the financial condition of each branch of business with in-depth analysis and accurate estimation of your income.

● Increase Profitability

Profitability is the ratio or ability of a business and company to generate profit (profit) from an income either at the level of sales, assets, and specific share capital or during a certain period.

Accounting Software Features

To carry out these benefits, HashMicro accounting software, for example, has many features that are integrated, such as:

1. Financial Dashboard

In one main screen, you can monitor the overall financial condition of your business, such as income, cash balances, accounts receivable, accounts payable, and many more. Straightforward, isn’t it?

2. Cashflow Forecasting

Cashflow Forecasting is data regarding predictions or estimates of the company’s monetary amount in the future. So, with this cash flow forecast, you can use it as a reference for future business plans. Through this cash flow forecast feature, accounting software can make it easier for you by helping to find out income and expenses accurately and precisely within a specified time.

3. Fast Bank Reconciliation

Are you spending too much time recapping transaction data from many banks? With the presence of the “Fast Bank Reconciliation” feature, this software will safely import and reconcile all your bank transactions automatically.

4. Accrual & Amortization

As humans, we will never escape from a mistake. Therefore, this accounting system can minimize human error by recording and calculating accurate accruals and amortizations automatically.

5. Budget Management

A company may be having trouble increasing its budget due to transparency issues or poor financial management. Due to the many complaints about these issues, accounting software provides a “budget management” feature to manage your budget and integrate it with purchasing management. You can also set the approval matrix based on the available budget.

6. Analytical Reporting

Making profit and loss reports, cash flows, balance sheets, changes in capital, and especially year-end financial statements now no longer takes time. Accounting software can generate the required information in just seconds.

The Existence of Accounting Software in Indonesia

Currently, many startups in Indonesia offer a variety of products to overcome the problems that exist in this modern life. It is undeniable that startups in Indonesia are also beneficial for the country’s economy by encouraging people to use local products that are not inferior to foreign products.

If you are looking for accounting software on a search engine, there are already a lot of businesses in Indonesia that offer digital products in the form of Accounting Software. As a startup that also provides accounting software products, HashMicro, represented by an expert named Lusiana Lu, gives advice for those who want to start using this software.

Look for someone who is competent and already has a lot of experience with clients, and can give you first-hand experience with the software. You can ask if there is a demo or trial? The goal is that you can find out whether this software will suit your business or not.