An accounting system is a digital tool used to do bookkeeping or accounting. Many people use accounting systems to make the job easier.
An accounting system can be used by you or our accountant to manage your business’ finances. This includes reporting your business’ finances, filing taxes, creating budgets, running payroll, and exporting detailed reports.
Some accounting systems are fully online and can also be used via an app on your phone, others have to be downloaded and installed on a computer.
You can do this without an accounting system, but it will take longer and require more manual work. Sometimes, you’re required to have accounting software to report to the government.
Different accounting systems for different industries
Some accounting systems are tailored to different industries. For example, a carpenter can use an solution that includes project management tools. Healthcare operators might go for an solution that also lets them schedule and manage appointments or can be easily connected to that kind of software.
Even if you don’t operate within an industry that has specific needs, it’s a good idea to get an accounting system that also lets you invoice. This is because invoices you send will then be automatically registered in your accounts, and the same goes for payments when you register an invoice as paid.
If you’re uncertain about how to do your accounting, an accountant can help you.
How do I choose an accounting system?
You should consider whether you need an industry-specific system or if a general one will work for you. Then you should decide on how much you’re willing to pay, and what kind of functionality you need.
Finally, consider how you’re planning to do your bookkeeping: If you want to outsource some of the work to an accountant then you need an accounting system that lets you add multiple users. The accountant might also have an accounting system that they prefer working in, so make sure to check that first.