Accountancy and record-keeping have always been an integral part of every business, regardless of its size. Companies use them to track their finances, manage internal working procedures, and keep track of clients. But they are often ignored by novice business owners. That’s because they tend to believe that they’re not the right tools for the job.
Good record-keeping and small business accounting software can be a massive help in keeping track of all your transactions. However, it is imperative that you use the right accounting software for your business. There are two types: desktop and web-based. Which one to use depends entirely on your situation and personal preferences. Both types of software can effectively help you in your record-keeping chores, although a web-based free invoice maker app can seem more flexible and professional.
Most accounting software comes with standard accounting systems like accounts payable, accounts receivable, and accounts payable plus accrued expenses. At the same time, some of them are equipped with fixed asset accounting systems that can include corporate fixed assets and individual fixed assets. Fixed asset accounting software works by allowing users to enter in information about fixed assets owned by the company and then letting them do the math to get the value of each asset. The value is usually figured by adding current production costs and sales to the price paid for the assets during the last month and then dividing by the number of units outstanding. A fixed asset accounting system is usually more appropriate for small or medium-sized enterprises, where large sums of money may be kept in storage or waiting to be purchased.
Accounting software designed for the web is commonly known as e-commerce accounting software. It allows a customer-business relationship to be established easily on the Internet. This facilitates data entry and electronic purchase and sale of goods and services. In other words, customers can place orders for products or services directly from a website. With this software, an online shop can maintain inventory, calculate shipping and handling charges, and print invoices and receipts for customers.
If you want to learn more about the uses of record-keeping and accounting, read the infographic below from KIPPIN: