Essential Features of a Modern Accounting System

Essential Features of a Modern Accounting System

Normally, accounting systems aren’t something that are changed very often. However, professional or technical services companies often reach a point where they cannot be productive due to too many manual processes, which calls for an upgrade for their accounting system.

Here are some of the features that a modernized accounting system should have:

Key financial processes, such as accounts payable, must be automated. Having a flexible system with you core processes automated will help save money on resources. A modern accounting system should handle multiple entities, multiple ledgers that can process transactions independently, multiple books, and custom workflows to match your business processes.

A modernized accounting system should also automate time-consuming administrative aspects of your organization, such as monitoring project status, capturing time and expenses, and invoicing. A good system would also provide deep insights into project costs, margins, and profitability, which would in turn improve forecast accuracy.

A modern accounting system provides in-depth, real-time insight into the business, allowing you to capitalize on new business opportunities or quickly recognize the need for corrective action. Having a detailed insight of the financial performance of your company has many benefits, such as seeing which clients are the most profitable, the cost of projects, or costs per service delivery employee. A system that allows you to categorize each transaction by dimensions such as customer, location, product, department, and other company specific dimensions so that you don’t have to create separate general ledger accounts will help you gain insight and totally transform your business insight, reporting, and business intelligence.

Modernized accounting systems are cloud-based which lower IT costs, reduce technology risks, and improve productivity. Using the cloud gives you flexibility to choose best-in-class solutions that focus on ease of integration with other leading software solutions to meet specific needs in each business area.

Cloud-based systems reduce technology risk with additional security, backups, disaster recovery for a lower cost than doing it yourself. They also allow you to enter data/time/expenses anytime, anywhere, on any device.

Contact us to learn more about our modern cloud based accounting solutions.