Understanding Computerized Accounting Systems and Why Your Company Needs It

Accounting is integral not only to the success, but also ensures the smooth operation of any type of business. It helps stakeholders stay on top of the company’s finances and checks to see that the money goes where it needs to go. Humans have been practicing accounting methods for a long time, but the field significantly changed with the introduction of computers. It started with electronic calculators, which inevitably led to the rise of powerful computerized accounting systems (CAS).

What are they, however? And why are they so important? For a closer look into a CAS and its features, here is a quick breakdown of what it is and why your company should start looking into implementing it.

What are Computerized Accounting Systems?

There are many ways to define a CAS, but in essence, it is a high-functioning program that accomplishes multiple accounting processes digitally for a company. It can be hosted in several ways, such as on a single computer, a network server, or on the cloud.

The purpose of a CAS is to help businesses manage their finances and any corresponding reports and decisions more effectively. It accomplishes this through a host of modules, each having its own place in the complex web of accounting operations. Some of the modules that comprise a CAS include:

• Bookkeeping
• General ledger
• Inventory module
• Invoicing
• Accounts payable
• Accounts receivable
• Electronic payment processing
• Purchase order module

Through these modules, your company will be able to access a variety of useful features, such as speedy reporting, payroll distribution, and flexible banking that will contribute significantly to its growth.

Why Does Your Company Need CAS?

One of the main reasons that organizations start looking into a CAS is that it may legally require a company to do so. The Bureau of International Revenue requires large companies to implement it and would typically reach out directly to said companies. However, this does not mean that only large enterprises should install it. After all, the benefits of using a CAS also apply to small and medium-sized companies and arguably, will become crucial to their expansion. For starters, here are some of the perks of implementing a CAS:

Automation of Data Encoding

Data entry is notoriously one of the most tedious and time-consuming aspects of accounting. A CAS lifts this burden off of your accounting department by automating the process. With a CAS’s centralized database, employees only need to enter new information into the system once, and the rest of the company will be able to access the new info. This not only saves time, but also reduces mistakes and errors in data entry, which are more likely to happen in manual accounting.

Simplifying Complex Accounting Processes

Accountants consider a lot of figures and data when making financial reports that go well beyond counting revenues and sales. Determining salaries, computing taxes, and financing new projects all require the accurate computation of these values. A CAS simplifies this undertaking by shouldering the bulk of computing power needed. As such, data becomes more reliable and generating reports becomes significantly faster.

Enhances Company Management

The importance of accurate and up-to-date data cannot be stressed enough for company management. Shareholders, company leaders, and other major decision-makers need the latest and most accurate numbers to guide their decisions on more profitable paths. Without them, the company will be groping in the dark and are more likely to incur losses down the road.

Tax Compliance

Like any other revenue-generating entity, companies must pay their due taxes or risk getting penalized by financial authorities. However, computing taxes becomes difficult without accurate bookkeeping, which can cause the business to pay less than what it is legally due. Thus, having a CAS in place will help ensure that your company is tax compliant, assuring the smooth continuation of operations in the future.

Indeed, powerful programs like a CAS serve not only as a jumping point for further growth, but also as the backbone for day-to-day operations. A CAS can help your company reach new milestones and perform in peak condition. That said, there are multiple accounting solutions in the market, so before choosing one, make sure to only transact with trustworthy and knowledgeable sellers like ANSI for your CAS purchase. In this manner, you can maximize your investment and watch your business soar to new heights. Wait no further, and contact ANSI Incorporated Systems, Inc. today.