Top Tools to Simplify Accounting Processes for Your Business

When starting a business, one never imagines the complexities associated with operating and managing it, especially when it comes to financial management. Financial management can drain one's vision and passion, causing one to shut down operations. Proper financial management is important as it determines the long-term financial health of the organization.

There is the option of hiring professional accountants to manage it; however, this can also be overwhelming since it is a complex process that consumes a lot of time and is prone to human errors, especially if the accounting process involves manual data entry.

Fortunately, with the era of digital transformation, there is an array of accounting tools and software that ease the complexities associated with the accounting process. The seamless integration between accounting tools and software enhances accounting processes by improving accuracy in analyzing financial reports.

This article will examine the various tools that facilitate accounting processes. The analysis will categorize the tools based on their primary function associated with the accounting process.

However, let us first understand the importance of a simplified accounting process.

Why do we Need to Simplify the Accounting Process?

It Improves Efficiency

To meet clients' needs, one needs an intuitive interface, which is facilitated by accounting tools and software. The seamless integration equips accounting professionals with the ease of undertaking accounting processes.

Its Cost Saving

The use of accounting tools reduces the workforce required to complete some of the tasks. The organization can save on company expenses associated with having a large firm. Additionally, by reducing the use of manual tasks, the firm reduces the risks of errors and the liability associated with the mistakes.

Saves on Time

Accounting tools and software help eliminate repetitive tasks, freeing up time for more strategic activities for the accounting team and clients. Additionally, the convenience associated with using automated tools enhances customer experience.

Offers Financial insights

To make informed decisions, accounting professionals use accounting tools and software to generate accurate financial records. These tools also give users easy access to financial reports, allowing them to generate available insight related to their operations.

Clients have to consider certain factors when shopping for accounting tools since they differ depending on needs and users. Here are some of the most crucial factors to consider

Factors  to Consider Before Selecting an Accounting Tool

Budget

Business owners must consider the budget allocated for accounting tools and software and whether it can meet the demands. There is a range of tools in the market that fit different business expectations, with some being free and others for small to medium businesses.

Business Size and Complexity of Operations

Businesses vary in size, which can be categorized by the number of operations or the complexity of the work that they perform. Hence, while some might require a simple interface, others will need a system with robust features.

Ease of Use

Not everyone is familiar with accounting aspects, such as how it facilitates operations and the stability of the business. Thus, depending on how the employees or clients are familiar with the tools, accounting tools or software needs to be user-friendly.

If the organization requires an advanced interface to handle its operations, it should consider training its employees to familiarize them with the system. This ensures that everyone is on board with the system while enhancing firm efficiency.

Integration with Other Systems

Business owners should choose a user interface that fits with the existing company system. This will ensure that the organization does not have to overhaul its entire operations, which can be expensive.

In the long run, a business should consider the benefits, such as valuable insights, reduced costs, or improved efficiency, which can derive from the new system. A business owner should consider whether it is advisable to change their entire system or add tools with features that will boost the existing system.

Top Tools to Simplify the Accounting Process

The accounting process serves a crucial function in accounting. These five key functions are:

• Financial management
• Expense tracking
• Processing of payments
• Payroll management
• Practice management

In analyzing the top tools that simplify the accounting process, we will evaluate several tools under each function and the key features associated with tools under each category.

Without much ado, let's delve in.

1. Financial Management

Financial management is the core function of any accounting process. It involves managing financial records and generating financial reports that outline the organization's financial health to the business owner and other associated stakeholders.

The accounting tools associated with financial management are:

Xenett

Xenett is a popular choice among accounting professionals and organizations due to its essential features that elevate financial performance. Its auto-review feature integrates with Xero and QuickBooks Online, powering the system and enabling it to autodetect errors, inconsistencies, and unusual transactions in its financial processes.

Workflow is enhanced as features such as automated checklists, task management, and auto reminders ensure that the month-end close process runs smoothly. This ultimately enables accounting professionals to deliver accounting tasks efficiently.

It is cloud-based accounting software that enhances client collaboration through its client portal feature. The client portals work to enhance client access to their accounts and facilitate open conversation and information sharing with the accounting professionals handling their operations. Additionally, they enhance transparency between stakeholders, allowing them to take in real-time insights.

It has a friendly user interface and affordable packages that cater to small-to-medium-sized operations. Additionally, large organizations can consider it as it has robust features that can match many industry needs. These additional features range from advanced security features to its ability to track expenses, offering real-time financial insights.

QuickBooks Online

QuickBooks Online has a user-friendly interface and is widely popular because it integrates with numerous accounting software programs. Small- to medium-sized operations prefer the platform because its features offer a one-stop solution for all their accounting needs.

The features associated with QuickBooks Online are customizable invoicing, expense tracking, automated reporting, payroll management, and bank reconciliation. These features cater to the organization's basic needs, and the firm can integrate other software tools if more is required.

Xero

Xero is a user-friendly interface that is popular for its ease of use, especially by employees or business owners who are not familiar with accounting practices. Additionally, it has received positive reviews for its ability to enhance collaboration with departments in an organization.

It has similar features to QuickBooks Online, but it has the added advantage of being considered an account aggregator (AA) ecosystem. The AA ecosystem facilitates the real-time sharing of financial information among regular entities.

Sage Intacct

Sage Intacct is a popular accounting tool for growing businesses and large operations. Its robust features are designed to handle complex accounting needs that enhance business performance.

Its advanced features in financial reporting and management simplify complex operations. Furthermore, its automotive feature helps in accurate account reporting and facilitates the effective completion of financial tasks.

Zoho Books

Small businesses prefer it as an accounting tool because it handles basic accounting needs at an affordable price. Additionally, Zoho Books offers seamless integration for firms using Zoho tools and software.

Key Features to Look for When Selecting

Due to the range of accounting tools and software, here are some pointers on what to consider when selecting.

• The software needs to facilitate business expense tracking, allowing users to record and categorize expenses, manage reimbursements, and capture receipts.
• The accounting tool should be capable of performing routine tasks associated with payroll management, such as calculating employee wages, taxes, and deductions and generating payroll reports. 
• It should facilitate invoicing and billing, create and send professional invoices, track payments, and remind clients and employees of their roles and responsibilities, ensuring the timely delivery of financial information.
• The accounting tools assist in bank reconciliation for the firm, and the automated features ensure that the bank statements match the company's financial records.
• It oversees inventory management by tracking inventory levels, managing stock, and calculating the cost of goods sold (COGS). 
• Financial management is made easy if the accounting tools can undertake simple accounting tasks such as generating financial statements like balance sheets, cash flow statements, and profit and loss statements.

2. Practice Management

In this category, the analysis will be based on the accounting tools that offer practice management features that facilitate client collaboration and communication, workflow management, and the tracking of accounting tasks, time, and financial transactions.

Canopy

its comprehensive features facilitate advanced reporting and fast-tracking of financial decisions for organizations. It has comprehensive features that enhance practice management through workflow automation, time tracking, document management, and a client portal.

Karbon

Its main focus is on workflow management, as it fosters collaboration with time and task tracking, work automation, where financial statements can be checked and confirmed for accuracy, and client communication features.

TaxDome

It is a popular platform for accountants, especially tax professionals, as it facilitates tax filings and reconciliation with bank transactions. Other additional features include document management, workflow automation, a client portal, and enhanced security through its e-signatures.

Key Features to Look for When Selecting

The features to consider are based on an organization's needs, budget, ease of use, and integration with other accounting tools. However, for practice management, here are the common features that an organization should consider.

• Their ability to track time. This enhances payment processing and billing for service delivery and facilitates task management.
• They should have a client portal, which will facilitate client collaboration and communication and enable clients to participate in informed decision-making on matters regarding their business.
• Its robust features should assist in financial analysis, facilitating workflow management and tracking of client's operations.
• It should have strong document management features, such as cloud-based data storage, that authenticate users' access to data through e-signatures. This ensures that clients can share data without risking data security. The tools should also have regular backups for documents to the cloud to ensure that crucial information is not lost.

3. Payroll Management

These accounting tools and software automate the process of calculating and processing employees' payroll. Some of the popular tools are:

Gusto

A popular payroll platform for small businesses that automates payroll calculations, tax filings, and employee benefits administration. Compared to traditional systems, which relied on manual entry and were prone to risks of error, this system is accurate and efficient.

 ADP

A comprehensive payroll and HR solutions provider for businesses of all sizes. It is a return on investment since a client can undertake payroll management with ease since it is not complex.

Paychex

Paychex is another popular payroll and HR solutions provider that offers a range of services, including payroll processing, tax filing, and human resource management. 

Key Features to Look for When Selecting

 An accounting firm should consider the following accounting requirements or features when selecting an appropriate accounting tool to assist in payroll management.

• Ability to calculate wages, taxes, and deductions when it comes to finalizing the net wage of employees. Manual tasks are prone to human error, leading to inaccurate entries,  late payments, and a displeased workforce. This eventually affects workflow for the firm.
• The accounting software option should facilitate employee self-service. Through the interface, employees can access their payment reports and verify their payment information. The platform should also provide the employees with the option of convenient online payments, which saves valuable time.
• An accounting interface needs to meet accounting practices associated with tax reconciliation. To facilitate this, the software should have automated features that assist in payroll tax returns and financial reports.

4. Expense Tracking

The accounting business tools associated with this accounting process should focus on tracking and management of business expenses. Popular accounting tools/software are:

Dext Prepare

Previously referred to as Receipt Bank, Dext Prepare offers expense management software solutions. It integrates with accounting software currently operating in the firm to track and post company expenses automatically.

With the detailed insights provided, the accounting tool will use the extracted data to provide the clients with accurate records related to receipts and invoices.

 Expensify

Expensify offers a software solution for financial operations through expense management. With Expensify, manual processes associated with expense reporting are eliminated as the business systems are automated to capture receipts, categorize expenses, and generate expense reports.

    Additionally, it is a powerful tool for medium-to-larger businesses as it integrates with existing accounting software for seamless data transfer. For expense management, real-time data transfer facilitates informed decision-making for accounting professionals and business owners.

 Key Features to Look for When Selecting

• The advanced accounting tools should offer seamless integration with existing accounting software, easing data transfer and facilitating expense claims.
• Expense generation should be an essential feature, where accounting automation categorizes expenses based on predefined rules. For example, the processing time should be within the month to facilitate the month-end closing process.
• Accounting tools should be able to generate expense reports for review and approval.
• It needs to have receipt capture and invoice creation features, such as scanning receipts and extracting related data.

 5. Processing of Payments

The cloud-based solutions offered by these accounting tools are responsible for simplifying the complex task of accepting and processing clients' payments. The popular accounting automation tools to consider include:

PayPal

This is a widely used online payment user interface that facilitates mobile access, which facilitates real-time access to payment processing.

Square

Some business operations deal with in-person payments that require manual data transfer. Square offers a point-of-sale (POS) system that facilitates manual transactions. Though not automated, this system is known for its accuracy and is mostly popular with small businesses.

 Key Features Associated with Payment Processing     

• It should facilitate integration with accounting software where the transfer of detailed records associated with payment is made possible.
• The accounting tool should accept online payment via debit cards and other online payment methods.
• The features should allow for the setting up of recurring billing for subscription-based businesses. Additionally, it can also incorporate payment reminders to clients to remind them of outstanding payments that they should follow up on from clients.

Conclusion

By carefully evaluating your needs and choosing the right tools, you can significantly simplify your accounting processes, improve accuracy, and free up valuable time to focus on growing your business.

Xenett is a one-stop solution for all your accounting process needs. It facilitates customer relationship management through its collaborative features, like the client portal, and a favorable pricing model that meets a range of clients' budget expectations.

Additionally, its automated features guarantee accuracy in financial reporting. All these features are geared towards customer satisfaction and accurate account processing.