Accounting software: advantages and disadvantages
Many accounting software have been placed on the market and many companies have adopted them. We will see in this article which arguments have convinced companies to equip themselves with accounting software before seeing the disadvantages that these software present.
What is accounting software?
Accounting software is used to keep track of a company’s finances. It is generally presented in the form of an accounting management solution intended to facilitate the management of a company: invoicing software, fixed assets management, etc.
What advantages does accounting software offer?
If accounting software is adopted by many companies, it is for these advantages that they have found:
The accounting software performs a large number of tasks in an automated way (VAT calculation, dunning of unpaid customers, etc.). Therefore, it allows employees to untie their hands in order to devote themselves to more productive activities for the company.
The software is designed to avoid frequent errors in accounting: duplicates, typing errors, calculation errors and even failures to comply with legislation (it is updated in real time with regard to legislative changes).
Better management of the company
The accounting software is a real management assistant. It can be useful at the accounting, social, legal and tax level for the company.
It allows you to perform the accounting entry, edit the pay slips, keep the analytical accounting, edit the treasury budgets, declare the social charges, and more…
Communication with the accountant
Finally, when it comes time to talk to its accountant, the company will have much less trouble with a software. It will be enough for him to transfer the files by digital way. The work of the expert is much simpler, more fluid, he will be able to accomplish his task quickly and efficiently.
If it offers strong arguments for companies, the software also has disadvantages
One of the major drawbacks of accounting software is its price. In addition to the initial cost of purchasing the program, you have to add the cost of subscription, maintenance, employee training, computer stations and additional modules.
This can quickly become daunting for a small business with a limited budget.
As each company has its own specificities, the software must be correctly configured during its installation. This is not always an easy step and may require training to avoid malfunctions due to incorrect configuration.
Like any computer program, the software can break down, be hacked, lose data, etc. Data security remains a common problem when it comes to computers.
In short, the advantages seem to outweigh the disadvantages. However, the price and the set-up time (training, etc.) can be very dissuasive for a company with limited means.