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.

5 Things to keep in mind before you start using QuickBooks

Accounting software plays a major role in each and every business and it is necessary to maintain all the transactions for further reference and tax refund. There is a possibility of data loss due to a simple mistake while installing and setting up the software on your system with no support. Hence, while migrating or upgrading to better accounting software like QuickBooks, it is very essential that you take care of the following things.

1. Update Previous records

While setting up the new company, you need to keep a record of all the past balance sheets, profit, and loss reports. While making the Company file, you can go to the Chart of Accounts and then organize it. QuickBooks has the additional function that will create a Chart of Accounts automatically when you create a company according to the field and business type.

2. Choose your financial year

It will be wise to start using QuickBooks according to the financial year cycle of your country. If you purchased QuickBooks in the month of March and the financial year started in January, then it is advisable to enter all the transaction details from the month of January. It is a good practice having a clean start or a full-fledged start for the financial year.

3. Customize templates for Invoice, Journals

You need to ensure that your brand logo and company details are mentioned on each invoice that you send to your clients and customers. Hence it is essential to customize the Invoice. You also need to take care of the Local rules set up by the Federal tax authorities and the structure that they need for the Tax Invoices. In UAE, the TAX Invoice needs additional columns for Amount inclusive of Tax for each column and other few details that are not included in the QuickBooks software. We provide additional software that works parallel with the QuickBooks desktop application. It can be used to print the invoices according to the UAE FTA rules.

4. Setup Items/Goods/Services that you offer

You need to specify all the goods, items and services that you provide along with the price that it is offered at. This will help you to prepare the invoices, journals, purchase orders, and estimates. You need to add all the items of your inventory and manage them wisely so that it is clear for reference by your managers and other teams.

5. Setup Tax Settings

Always choose the right country while setting up your company as this cannot be changed later on. Also, you need to set the taxes and the percentage of tax that is applicable to each good. QuickBooks will automatically calculate and give you the VAT amount charged on the tax invoice that is generated.

We at Peniel technology LLC provide full support and training for QuickBooks and help our clients who purchase the product from us with the installation and initial setup for their company according to their functioning and field of service. If you have any doubts and queries, we can help you out. Contact us by filling the form on the Contact us page or via the Chat column that is on our homepage.