Accounting Software for Inventory and Warehouse Management

Overview

  • What is an Accounting Software?
  • Benefits of Accounting Software
  • Integrating Accounting Software
  • Benefits of Integrating Accounting Software to IMS or WMS

Accounting Software for Integration

What is an Accounting Software?

Accounting software is an application software that records and processes accounting transactions. Modules under this software include:

Account PayablesMoney owed by a business to its suppliers
Account ReceivablesClaims for payment by a business for services or supplies rendered
JournalsRecords of transactions
General LedgersCentral repository for all accounting data transferred from sub ledgers
PayrollsThe list of employees of some company that is entitled to receive payments
Trial BalanceA list of all general ledgers

Implementation and configuration of the software are also important. Since there are different types of software, the range and providers also vary greatly. The types of accounting software are generally divided into six: 

  • Personal accounting
  • Low-end market
  • Mid-market
  • High-end market
  • Hybrid solutions
  • SaaS (software as a service)
  • Resellers, developers and consultants usually sell the mid-market to larger applications. They pass the license fee to the software vendor. Then, they charge the client for installation, customisation and support services.

    Benefits of Accounting Software

    Accounting software is generally easy to integrate and set up. The software is easy to connect to management systems. Additionally, it gives payable updates that integrate all suppliers and supplier transactions. Then, the software also sends transactions for payments as you receive stock. It also gives receivable updates. So the software updates the system when clients owe you money. It can also send reminders to customers regarding payments. Other updates include perpetual stock updates. Updates happen in real-time with real-time account integration. In relation, contacts also go through real-time synchronisation. 

    Integrating Accounting Software 

    Successfully integrating software into a system doesn’t just happen. It takes careful design, planning and implementation. Some of the steps involved are the following: 

    Step 1: Choose the accounting method.

    The two usual methods are cash and accrual accounting. Cash accounting records cash receipts and payments when they occur. As such, there is no need for accounts payable or accounts receivable. On the other hand, accrual accounting recognises revenue when it’s earned, not paid. Additionally, expenses are recorded when incurred.

    Step 2: Choose whether you will use an accounting software program or employ a manual accounting ledger system 

    People typically choose accounting software since they are much easier to use. The user does not have to be an accountant to manage the software.

    Step 3: Establish a method for entering invoices, bills, and revenues

    One key aspect of lean warehouses is being able to standardize an efficient process. Therefore, choose who will enter important data. Also, determine when the data will be entered. Aside from that, write down the steps and make sure it’s visible to everyone. This makes it easier to train people to follow the process.

    Step 4: Choose an accountant that can review your books

    Benefits of Integrating Accounting Software to IMS or WMS 

    Accurate Financial Report

    Every business needs to check inventory stock with accounting data. Accuracy is important for key stakeholders and investors. Additionally, it is also important for tax purposes. If there are major discrepancies, then root causes should be investigated. Integrating the transactions of your inventory management system with the back-office accounting system will help to remove complications, mistakes and delays.

    Enhanced Automation

    Integrating two of the most vital software of your business into one platform streamlines processes. Further, real-time solutions increase automation in the business. The output from the integrated software uncovers potentially valuable insights for inventory management decisions. It allows for efficient and accurate financial reports.

    Reduced Error and Tax Compliance 

    Automation reduces the chances of human error. As such, there are also reduced operational costs. The software can be customized to handle local tax codes. Then, there is little to no need for outsourcing bookkeeping. 

    Other benefits include: 

    • Simple and fast data entry or retrieval
    • A centralised database for collaborations between departments
    • Improved productivity 
    • Better decision-making based on timely and accurate financial reports

    There are a lot of things accounting software can improve. They are not limited to numbers and settling billings or invoices.

    Learn more about the benefits and features of accounting software and find out how it can be customised for your business needs today. Contact Qbasis today and discover what we can do for you and your business. 

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