Best Accounting Software is used by accounting
professionals to manage day to day accounts and perform other accounting
operations. It is systematized practice, work or process of communicating and
recording financial data. A business organization use accounting software for
various purposes including internal and external audits, required reports and
financial analysis to meet legal or internal managerial requirements.
Accounting software
ranges from simple and easy, single-entry programs for individual
record-keeping to more urbane, double-entry systems that can process accounts
receivable, accounts payable, payroll and inventory, among other functions.
360Quadrants, the most granular comparison platform, has released a quadrant on accounting
softwareto help businesses make quicker and more informed decisions. The
quadrant has QUICKBOOKS, SAGE SOFTWARE, FRESHBOOKS, and NETSUITE
(BY ORACLE) sharing space as Visionary Leaders. 360Quadrants are generated post
analysis of companies (product maturity and company maturity). Quadrants will
be updated every three months based on market and regional analyses and
developments in accounting software. 360Quadrants also list the 20 best companies in
the accounting software space.
QUADRANT HIGHLIGHTS
40+ companies offering
accounting software
were analyzed
of which top 20 companies were shortlisted and categorized on a quadrant under
Visionary Leaders, Innovators, Dynamic Differentiators, and Emerging Leaders.
ACUMATICA, BLACKLINE,
THOMSON REUTERS, FRESHBOOKS, NETSUITE (BY ORACLE), ODOO, ORACLE CORPORATION,
QUICKBOOKS, SAGE SOFTWARE, SAP Business One (SAP SE), WORKDAY, XERO LTD., and
ZOHO CORPORATIONhave been identified as visionary leaders as they have
established product portfolios and a robust market presence and business
strategy.
MICROSOFT has been
identified as innovators as it has focused product portfolios, but a mediocre
business strategy in accounting software space.
FREEAGENT,
SUNRISE, SYSPRO, and WAVE have been recognized as dynamic differentiators as they have strong
business strategies, but a weaker product offering as compared to other market
players. These companies are known to focus on specific product offerings as
opposed to an elaborate portfolio.
THE GNUCASH
PROJECT, and INFOR INC have been identified as emerging companies as they have a niche product offering
but poor business strategy.
360Quadrants conducts an in-depth SWOT analysis and accurately analyses the
companies considered for evaluation. This helps service providers in learning
about new opportunities and areas where they lag their peers. It also helps
clients in choosing the most appropriate vendor for their requirements.
Top 10 Accounting Software
- NetSuite
- FreshBooks
- QuickBooks
Online
- SAP
Business One
- Sage
Intacct
- Microsoft
Dynamics GP
- Sunrise
- Xero
- Vyapar
- Traverse
Key benefits of Accounting Software-
Time Saving-
The major advantage of accounting
software is that it saves a lot of time over manual bookkeeping. With a
computerized accounting system, front end business documents and back end
transaction recordings are accomplished simultaneously. For instance, one can
create customer invoices, prepare bank deposits and write checks in the
program, with the added benefit that the system records each transaction. The
software also helps to manage all over the working of accountancy within few
times.
Financial Statements-
As compared to the manual accounting
system, the computerized accounting system enables monetary articulations for
any time frame to be created with the snap of a catch. This allows a business
head to continuously monitor an organization’s monetary execution and address
any issues before they get to be risky.
Cash Flow Management-
With accounting software, it enables
you to record receivables and payable in every system. This allows the system
to estimate your cash flow position into the future. For instance, if you have
submitted all your bills and customer invoices in the system with their due
dates, the system provides a print report that will give clear picture if you
will have enough money between what you have now and what you expect to be
coming in to cover the bills that are due. It provides a detailed record of all
bills and invoices. This future planning tool helps you avoid overdraft charges
and late fees and fines.
Enhanced Productivity-
If a company owner wants to select a
single suite of digitized resources to boost results, accounting software
should be his / her first choice. Such programs dig deep into organizations’
most inefficient, day-to-day operations, gather, arrange, and analyze their
most valuable data and what is most important, allow more efficient use of
their resources.
Learning Curve-
Another major benefit of accounting
software is learning curve, especially if one hasn’t used it before. Generally
small business owner face difficulties to spare time to learn how to use the
system appropriately, which leads to errors and reconciliation issues. Proper
training is crucial to get most out of your accounting system. It becomes easy
to cope with errors in small businesses.
Features to be considered in best
Accounting Software-
Analysis and Report-
Analysis and reporting are one of the
crucial features the best
accounting software must possess. Reports record maintenance
is a key requirement of any business to analyze and report in the critical
financial situation. Easy and quick access to the records can enable the major
tasks and meetings within organizations. This analysis and report will help the
management during key decision making and save their maximum time as well as
the stress.
User-friendliness-
This is also an important feature a
top accounting software should have. User-interface of any software is the core
of attracting users. Generally, not every person has the sound technical
knowledge and if a software interface is difficult to understand user might get
more tangled. If the software isn’t user-friendly it will take more time from
the accountant to understand its procedure and use the software.
Integration of billing and invoicing
features with inventory management-
Generally, all accounting systems have
different basic functions and features, and most of them offer basic billing,
invoicing, and inventory management. But, if all of them are integrated in one
system, then it will help to reduce a significant amount of time transferring
or migrating data from one system to the other.
Secure sensitive data-
Financial information is crucial and
sensitive data, and it should never go into the wrong hands. Keeping this in
mind, the best accounting software should provide complete and solid security
features. Go for user-based access features, as this is always a good security
measure. With this feature on place, a best accounting software can only be
accessed by an authorised person in your finance team with a permit. Moreover,
their access is restricted only to what their tasks are. For instance, the
person assigned to payroll management will only have access to data relevant to
payroll needs.
Data Sharing-
A top accounting software is
customizable according to the business need and requirements. Each business has
its own measures and ways of handling modules. If a software is not
customizable then it may create hurdles for the accountants and finance team to
work according to the organization needs and requirements. The software must be
convenient in customization of data and reports according to the client’s ease
and requirements.
The Future of Accounting Software-
1. Artificial Intelligence Reduces
Redundancy
Artificial Intelligence (AI) will
never fully replace your accountant, but AI-based accounting software is
already performing several tasks. One of the major achievements of AI is
automatically matching transactions from connected bank accounts to invoices
and expenses. This helps to reduce the amount of time needed for bank
reconciliation. Additionally, with an AI-based system there is no need for more
pressure over paper statements every month to make sure the transactions match
your journal ledger. By permitting AI to handle redundant tasks, the margin of
error is much lesser. Obviously, some tasks will always need oversight, but
AI-based accounting systems will alert you whenever data needs a human touch.
2. Blockchain Will Make Accounting
Simpler
Disruptive and driving technologies
like Blockchain, which is at the core of cryptocurrencies like Bitcoin, are
making waves because of its resistance to fraud and ability to record
transactions without a middleman. For instance, businesses must use a
third-party (bank or payment gateway)to accept money from a client. But with
blockchain technology, transactions take place instantly and are digitally
recorded without the use of a bank or payment gateway. In accounting, blockchain
technology helps to automate the auditing process and reduce the frauds or
almost impossible. But it is too early to see any extensive changes yet as the
technology is still flourishing.
3. OCR Eliminates Manual Receipt Entry
With so many destructing and driving
technological developments like AI and blockchain, it almost appears
unfortunate to talk about a technology that has been in development since as
early as 1914. The beginning of converting characters into telegraph code is
now standard practice in the financial sector, where OCR (Optical Character
Recognition) saves too much of processing time by means of machines to read
handwritten characters and interpret them into electronic data.
Today, users can take pictures of
receipts with their smartphones and upload them to mobile versions of their
accounting software, which automatically generates expenses complete with
vendor name and amounts. This significantly reduces data entry time and manual
errors that come along with it.
360 Scoring Methodology
Top Accounting
Software will be rated
using the following methodology -
1.
2.
a.
b.
3.
4.
a.
b.
c.
d.
5.
6.