Accounting is a critical aspect of running a business, ensuring accurate financial records and providing insights for decision-making. In today’s digital era, manual bookkeeping is being replaced by efficient accounting applications that streamline processes, minimize errors, and enhance overall financial management. In this blog post, we will explore what an accounting application is and why your business would greatly benefit from using one.
What is an Accounting Application
An accounting application, or accounting software, is a digital tool designed to automate and simplify various accounting tasks. It enables businesses to manage financial transactions, track income, and expenses, generate reports, and maintain accurate records. These applications often offer features such as invoicing, payroll management, inventory tracking, tax preparation, and financial analysis.
Why Would I Need an Accounting Application
Accounting applications automate repetitive tasks, such as data entry and calculations, significantly reducing the time and effort required for manual bookkeeping. By streamlining processes, these applications save valuable resources, allowing you to focus on core business activities. Automated features, like invoicing and payment reminders, ensure your financial operations run smoothly and efficiently.
Accurate Financial Records
Maintaining accurate financial records is crucial for making informed business decisions and complying with legal requirements. Accounting applications help you track income, expenses, and inventory in real-time, ensuring up-to-date and accurate financial data. By eliminating manual errors and providing detailed reports, these applications improve the reliability of your financial records.
Financial Analysis and Reporting
Accounting applications offer advanced reporting features that provide valuable insights into your business’s financial health. Customizable reports, such as profit and loss statements, cash flow statements, and balance sheets, help you evaluate your business’s performance, identify trends, and make data-driven decisions. These tools empower you to assess profitability, monitor expenses, and identify areas for improvement.
Streamlined Tax Preparation
Tax compliance can be a complex and time-consuming process. Accounting applications often include tax preparation features that streamline the preparation and filing of taxes. They help track deductible expenses, generate tax reports, and ensure accurate calculations, reducing the risk of errors and potential penalties. Simplifying tax preparation saves time and ensures compliance with tax regulations.
Improved Financial Management
An accounting application provides a holistic view of your business’s financial status. It enables you to monitor cash flow, track receivables, and payables, manage budgets, and project future financial scenarios. These tools facilitate better financial planning and budgeting, enabling you to allocate resources effectively and make informed decisions to drive business growth.
Scalability and Integration
Accounting applications are designed to accommodate businesses of various sizes and industries. Whether you are a small startup or a growing enterprise, these tools can scale with your business needs. Additionally, many accounting applications integrate with other business software, such as customer relationship management (CRM) or e-commerce platforms, allowing seamless data flow and eliminating the need for manual data entry.
Accounting Applications and FileMaker
Accounting applications are excellent at helping manage one’s financial data. However, extending their capabilities by integrating with FileMaker can bring volumes of new features and save time on duplicate entries and related errors.
If your company is already using Claris FileMaker for your business workflow, you may want to investigate having your FileMaker databases speak directly to an accounting application. There are a few accounting applications that offer many features and extensive reporting, as well as the ability to be integrated with FileMaker.
QuickBooks by Intuit has the largest market share of any accounting application by far. Recent numbers indicate that QuickBooks has at least 80% of the total market share, nearly 25+ million users!
If your company has multiple entities for financial reporting and requires a lot of flexibility for the way you manage your accounting data and reporting, Genesis Accounting, by Codence, has been in the market for over two decades and is written in FileMaker for cross-platform functionality.
Let’s explore more about these accounting applications.
A Comprehensive Guide to the Different Versions of QuickBooks
Finding the Best Fit for Your Business
When it comes to managing your business’s financials, QuickBooks has become a go-to solution for countless small and medium-sized enterprises. As the leading accounting software in the market, QuickBooks offers a range of versions tailored to meet specific business needs. In this blog post, we will explore the different versions of QuickBooks and help you determine which one best fits your unique requirements.
- QuickBooks Online: QuickBooks Online is a cloud-based accounting software that allows you to access your financial data anytime, anywhere. This version is ideal for businesses that prioritize mobility and collaboration. It offers many features, including invoicing, expense tracking, bank reconciliation, and multi-user access. QuickBooks Online also integrates with various third-party applications to streamline your business processes. It suits businesses of all sizes, particularly those with remote teams or multiple locations.
- QuickBooks Desktop: QuickBooks Desktop is a locally installed software that provides comprehensive accounting tools and robust reporting capabilities. It offers three distinct versions: Pro, Premier, and Enterprise, each catering to different business needs.
- QuickBooks Pro: QuickBooks Pro is designed for small businesses and offers essential features such as invoicing, expense tracking, inventory management, and financial reporting. It suits businesses that do not require advanced inventory or industry-specific functionality.
- QuickBooks Premier: QuickBooks Premier builds upon the features of Pro and adds industry-specific tools for sectors such as manufacturing, nonprofit, professional services, and retail. It provides advanced inventory management, forecasting, and customized reports tailored to specific industries.
- QuickBooks Enterprise: QuickBooks Enterprise is the most comprehensive version of QuickBooks Desktop. It offers advanced features such as advanced pricing, robust inventory management, and advanced reporting tools. QuickBooks Enterprise is suitable for larger businesses with complex accounting needs.
- QuickBooks Self-Employed: QuickBooks Self-Employed is tailored for freelancers, independent contractors, and self-employed individuals. It helps track income, expenses, and estimated taxes. This version is ideal for individuals who need to separate personal and business expenses, track mileage, and manage their taxes efficiently.
- QuickBooks for Mac: QuickBooks for Mac is designed specifically for Mac users, providing a native desktop experience for Apple devices. It offers similar features to QuickBooks Pro, allowing Mac users to manage their finances seamlessly.
Choosing the Best Version
Determining the best version of QuickBooks for your business depends on various factors. Consider the following:
- Business size and complexity: Assess your business’s size, industry-specific needs, and future growth plans to determine whether QuickBooks Online or QuickBooks Desktop suits your requirements better.
- Mobility and collaboration: QuickBooks Online is the preferred option if you require remote access and collaboration features.
- Industry-specific functionality: Consider QuickBooks Premier or Enterprise for advanced industry-specific tools if your business operates in a specific industry.
- Mac compatibility: If you use Mac devices, QuickBooks for Mac ensures a seamless experience.
QuickBooks offers a range of versions to accommodate different business needs. While QuickBooks Online is ideal for mobility and collaboration, QuickBooks Desktop provides robust features and industry-specific tools. QuickBooks Self-Employed caters to the needs of freelancers and independent contractors, while QuickBooks for Mac offers a native experience for Apple users. Assess your business requirements, size, and future growth plans to determine the best QuickBooks version that aligns with your financial management needs. Remember, the right choice can help streamline your accounting processes and contribute to your business’s overall success.
Genesis Accounting has been used for over two decades, bringing the most reporting options in the marketplace.
Recommended for larger companies that struggle with managing multiple reporting entities that require individual financial statements, yet the business workflow is combined in a FileMaker front-end system.
More on this robust application in a future blog post.
Codence Can Help!
If you would like an assessment of the best accounting application for your business, Codence can assist! We also perform some of the most powerful accounting integrations in the industry with developers that have extensive financial and accounting expertise.
Senior Accounting Developer
Laura is a FileMaker Certified developer, a QuickBooks Pro Advisor, the author of an integration tool to post from FileMaker to QuickBooks. Laura says that, “There is no traffic jam on the extra mile,” and strives to always provide the best customer experience possible. Laura enjoys gardening and hosting visitors from all over the world.