How to Optimize your Business Accounting Software

Components of Financial Statements

An ideal financial report consists of a balance sheet, income statement, statement of changes in equity, statement of financial position, notes and other reports and explanatory material which are an integral part of the financial statements.

The functions of each supporting elements above are:

1. The balance sheet shows or describes the assets (assets), liabilities (debt), company capital (equity) of the company at a certain time period. However, management can also request a balance sheet report when needed to find out exactly how much assets, debts and capital they have at any given time to find out the company's actual financial condition;
2. Income statement shows the results achieved by the company’s activities and whether the company is in a profit or loss state. It describes the health of the company, as well as the expenses incurred during a certain period in order to generate the revenue.
3. The Report on changes in equity show the details and uses of the company’s equity, as well as causes of changes in company equity;
4. The report on changes in capital describes the amount of capital owned by the company at the given time. A report on changes in capital is made to provide an overview and details regarding the decrease or increase in net capital over a certain period
5. The cash flow statement is a report that shows cash inflows and cash outflows in the company. Cash inflows include income and loans from other parties, while cash outflows are expenses that have been incurred by the company.
6. Notes to financial statements are reports made related to the financial statements presented. This report provides information deemed necessary to the related financial reports to explain causes; and
7. Financial position statement is a financial report that reports the company's assets, liabilities and equity at a certain time to facilitate analysis and predicting future cash flows.

Goal of Financial Statements

The purpose of financial reports is to provide information about the company's financial condition, performance and cash flow that is useful to make economic decisions. It also reports responsible management's use of the resources entrusted to them (Fahmi in his book Financial statements Analysis).

In detail, the objectives of the financial statements include (Kasmir – 2016):

1. Provide information about the type and amount of assets currently owned by the company;
2. Provide information about the type and amount of liabilities and capital currently owned by the company;
3. Provide information about the type and amount of income earned during a certain period;
4. Provide information about the total costs and types of costs incurred by the company during a certain period;
5. Provide information about the performance of company management during a certain period;
6. Provide information about the details for each financial statements’ entry; and
7. Other financial information.

Review Of The Best Accounting Softwares for Companies

Given the importance of a financial report for business, companies usually use accounting softwares to help manage their financial reports easier and faster. Accounting softwares also helps finance teams to track the company’s income and expenses. Here are some accounting softwares that are widely used by companies and their reviews.

Oracle Netsuite

Oracle Netsuite is ERP software with cloud technology to measure your financial processes while your business is growing. The service offered is not limited to financial management, but extends to other levels such as supply chain management, procurement, production management, and warehouse fulfillment.

Odoo

Odoo offers free software, including free hosting and assistance. They emphasize that you only have to pay when you install other supporting applications. They also offer flexible integration between invoicing and online payments, so that it automatically syncs with Bank Feed. Other advantages are:

• Multi-currency feature with automatic exchange rates to facilitate international transactions;
• Reconcile propositions automatically and quickly;
• Using OCR technology and artificial intelligence to automatically encode business documents in the accounting system;
• Specific configuration to meet your country requirements such as taxes, country-specific reports, e-invoicing, file audits, and fiscal positions to automatically apply the correct tax rates and accounts; and
• Automatically propagated over one entry to reflect deferred income and expenses, created periodically on draft mode.

Jurnal

This accounting software from Mekari provides service that can be updated in real-time, instant calculations, and provides many report templates that can be selected and modified as needed. Here are the specifications:

• Using ISO 27001 standard for security;
• Check historical data easily through the filter feature by period or transaction tag group;
• Direct synchronization to business accounting allows for a more practical recap of financial data according to updates;
• Includes visual graphs that allow owners to read data easily; and
• Easily compare performance through monthly to yearly period filter features.

‍Ecount

Eccount provides collaboration features for accounting programs that consists of a Profit and Loss Report to a Balance Sheet to show the overall status of funds and sales. With Ecount you can manage and allocate budgets for each period or department. In addition, other features include:

• Receipts or proof of payment are managed accurately;
• Unique number for each import case (transaction);
• Bills receivable or accounts payable books are generated automatically;
• Employees who have taken business trips can enter their own business travel expenses; and
• Can register monetary units without restrictions.

Kledo

Kledo is an accounting software that fulfills all business needs, from recording company income expenses, accounts payable & receivables, purchasing, sales quotes, invoices to reconciliation with national banking mutation data. All of this is available for free. Kledo's service includes:

• In-depth statistical display in graphic form;
• Easy to user interface;
• Monitor expenses, sales, purchases, cash and bank balances;
• Financial reports such as balance sheets, cash flow reports, profit and loss reports and ledgers; and
• Create invoices instantly with elegant and professional designs for customers.

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Aspire Tips to Close Your Book 2x Faster

If your company is already using softwares to help compile financial reports, it's time to improve and optimize the company's financial processes for maximum effectiveness! We know that processing and recording manual transactions consumes a lot of time and is prone to human error. Especially repetitive data-entry activities. The time and cost required to fix these errors is considerable.

It’s time to integrate your business bookkeeping software with Aspire all-in-one financial platform. All financial transactions can be carried out through Aspire platform and are automatically recorded in your accounting software. You can also automatically categorize entries by vendor, purchasing team, and more, for automatic data-entry, even up until automatically deducting taxes based on transaction type.

Aspire also provides payables, receivables, and claim management, with approval systems to streamline all your business finance operations. Of course, now you can also access financial reports and see your company’s current financial status anytime and anywhere, without having to wait until the end of the month.

Find out more about Aspire or talk to our team to find out how Aspire can simplify all your business finance and accounting processes. Make sure your company can pick the right strategic decisions based on thorough and up-to-date data!