How to use accounting software

 Using accounting software can seem daunting at first, but with a little practice and guidance, it can become a valuable tool for managing your business finances. Here are some general steps to get you started with using an accounting software:

Choose an Accounting Software

The first step is to choose an accounting software that meets your business’s needs. There are many accounting software options available, ranging from basic to advanced features. Some popular options include QuickBooks, Xero, FreshBooks, and Zoho Books. Consider factors such as pricing, features, and user-friendliness when selecting an accounting software.

Set Up Your Chart of Accounts

Once you have selected your accounting solution, the next step is to set up your chart of accounts. Your chart of accounts is a list of all the accounts used in your business’s accounting system, such as assets, liabilities, equity, income, and expenses. The software may come with a pre-built chart of accounts, or you may need to customize it to match your business’s needs.

Enter Opening Balances

Before you start recording transactions in your accounting system, you will need to enter opening balances for your accounts. This involves recording the balances of your accounts as of a certain date, such as the start of your fiscal year. Opening balances ensure that your financial statements are accurate and reflect your business’s financial position.

Record Transactions

Once your accounting software is set up, you can start recording transactions. Transactions can include sales, purchases, receipts, payments, and payroll. The software will categorize each transaction into the appropriate account, based on your chart of accounts.

Top 10 Accounting Software in UAE

Reconcile Bank Accounts

It is important to reconcile your bank accounts regularly to ensure that your accounting solution matches your bank statements. Bank reconciliation involves comparing the transactions recorded in your accounting software to the transactions recorded in your bank account. Any discrepancies should be resolved promptly to ensure the accuracy of your financial statements.

Generate Reports

One of the key benefits of an accounting system is its ability to generate financial reports. These reports can include income statements, balance sheets, and cash flow statements. Financial reports provide businesses with a snapshot of their financial health and are used to make informed decisions about their finances.

Automate Tasks

Take advantage of the automation features of your accounting system to save time and reduce errors. For example, you can set up automatic invoicing, bill payments, and payroll processing. Automation eliminates the need for manual data entry and reduces the risk of mistakes.

Seek Help When Needed

Don’t hesitate to seek help when using accounting software. Most software providers offer customer support, tutorials, and training materials to help you get started. You can also hire a bookkeeper or accountant to assist with more complex tasks or to review your financial statements for accuracy.

In conclusion, using accounting system can help businesses manage their finances more efficiently and effectively. By following these general steps, you can start using accounting software with confidence and gain valuable insights into your business’s financial health.

How accounting software works

 Accounting software is designed to provide businesses with an electronic system for recording, processing, and reporting financial transactions. The software can automate many accounting tasks, such as invoicing, bill payments, and payroll. It can also integrate with other systems, such as point-of-sale systems, inventory management systems, and bank accounts, to streamline financial operations and reduce errors. The following is a detailed explanation of how accounting software works:

Recording Transactions

The first step in using accounting software is to record financial transactions. Transactions can include sales, purchases, receipts, payments, and payroll. This can be done manually, by entering data directly into the software, or automatically, by integrating the software with other systems, such as point-of-sale systems or bank accounts.

Once a transaction is recorded, the software categorizes it into different accounts, such as assets, liabilities, equity, income, and expenses. The software can be customized to match the business’s chart of accounts, which is a list of all the accounts used in the business’s accounting system.

Processing Transactions

After transactions have been recorded and categorized, the accounting software processes them. This involves performing various calculations, such as adding up sales revenue, subtracting expenses, and calculating payroll taxes. The software can also track accounts receivable and accounts payable, showing which customers owe the business money and which bills the business needs to pay.

Generating Reports

Once transactions have been recorded and processed, the accounting software can generate financial reports. These reports can include income statements, balance sheets, and cash flow statements. These reports provide businesses with a snapshot of their financial health, showing revenue, expenses, assets, liabilities, and cash flow. Financial statements are used by businesses to make informed decisions about their finances, such as whether to invest in new equipment or hire additional employees.

Automation of Accounting Tasks

One of the key benefits of accounting software is its ability to automate accounting tasks. For example, the software can automate invoicing by generating and sending invoices to customers electronically. The software can also automate bill payments by allowing businesses to pay bills electronically. Additionally, accounting software can automate the payroll process by calculating and processing employee salaries and wages.

Top 10 Accounting Software in UAE

Automation saves businesses time and reduces errors, as it eliminates the need for manual data entry and reduces the risk of mistakes. This allows businesses to focus on other important tasks, such as growing the business and serving customers.

Integration with Other Systems

Accounting software can integrate with other systems, such as point-of-sale systems, inventory management systems, and bank accounts. This integration allows businesses to streamline financial operations and reduce errors.

For example, point-of-sale integration allows businesses to automatically record sales transactions in their accounting software. This eliminates the need for manual data entry and reduces the risk of errors. Similarly, inventory management integration allows businesses to track inventory levels and costs in their accounting software, reducing the risk of stockouts or overstocking.

Bank account integration allows businesses to automatically reconcile bank transactions in their accounting software. This eliminates the need for manual data entry and reduces the risk of errors. Additionally, bank account integration allows businesses to track cash flow and manage their finances more effectively.

Conclusion

Accounting software has revolutionized the way businesses manage their finances. It allows businesses to automate accounting processes, reduce errors, and generate accurate financial reports. Accounting software can integrate with other systems, such as point-of-sale systems, inventory management systems, and bank accounts, to streamline financial operations and reduce errors. This allows businesses to focus on other important tasks, such as growing the business and serving customers.

Best Accounting Software Solutions used in Dubai, UAE

Accounting software plays an important factor in business growth and development. Hence it is very necessary to choose the right accounting software which will make your accounting easy for you and also show you the business trends and analysis. Accounting software should not be restricted to accounting work only, but it should be able to print vouchers, payment details, give business insights, generate reports that are customizable, should be able to give you good insights and progress of your business, and help you take better decisions in future. Here are the best accounting software used in UAE and preferred by many businesses and organizations across Dubai, Abu Dhabi, Sharjah, and other Emirates. These Accounting Software are VAT compliant which will help you to carry out transactions smoothly and helps you calculate the tax refunds and other expenditures wisely. Following are Best Accounting software Solutions used in Dubai UAE.

1. Intuit QuickBooks

Known for its easy User Experience and simple User Interface, QuickBooks is a powerful accounting software equipped with many features and functions to run your business smoothly. Quickbooks has 3 main versions. The UK, US, and Canada. Only the UK version supports VAT functionality while the US does not support VAT functionality. Hence the UK Version is the preferred version of QuickBooks in UAE.

Quickbooks has the following editions.
QuickBooks Pro.
Quickbooks Premier.
Quickbooks Enterprise.

Quickbooks Pro is the base edition that is suitable for all the basic accounting functionality used by a small business and start-ups. Some of the features include Inventory tracker, Sales tax tracker, Invoicing, Manage bills and other payables, Track Income, and Expenses.



Quickbooks Premier is the Industry level accounting software used by many industrial business and factories. This edition has the features and functions of the pro version and additional features like Units of Measurements, Flexible pricing for different customers, financial forecasting, Create backorders and a few other features.






QuickBooks Enterprise edition is only available in the US version and not available in the UK version. This edition is subscription-based software, where you have to pay monthly subscription fees to use the software.

There is also a Quickbooks Accountant edition which is useful and relevant only for Auditors and Chartered accountants.

If you are unable to decide which version suits your organization the best you can contact us and our expert technicians to guide you. You can always upgrade from the pro version to premier version and then to enterprise version as and when you want. So QuickBooks is Best Accounting software Solutions used in Dubai UAE.

2. Tally.ERP 9

This software has the power of a full-fledged ERP software and has many features packed into it. It comes in a standard package that contains all the features together. You can later enable and disable the features that you want. The tally comes in two versions.
Silver Edition (Single User)
Gold Edition (Multi-User)

Tally now comes with additional features like remote access and encryption technology. It is installed on your desktop or on your server for multiple access.

Tally covers all accounting activities of your company
Maintain Stock
VAT calculation
Prepare Financial Report
Cheque Management
Maintain an account of all Customer and supplier
Generating invoices
Payroll
Loan and advances

Tally User interface is very basic and fast to use. You can operate it with the help of a keyboard only and navigate around it easily. It has a drill-down feature that helps you analyze reports and know the growth of the business organization. This accounting software also has the VAT enabled the feature which is good for the UAE tax validation and refunds. So Tally ERP 9 is the Best Accounting Software Solutions used in Dubai UAE.

3. Sage:

Previously, Sage had products like Sage 50 US, Sage 50 UK, Peachtree, and other accounting software, but now they have discontinued these products. They have currently moved everything online and have changed the mode of payment to a subscription basis, where you have to pay annually. This product is very cost-efficient and gives you many features at the best prices in the market.

Reference: www.penieltech.com