Businesses are increasingly adopting accounting software in the UK to make the accounting processes more efficient and quick at their company. With the help of accounting systems, businesses can significantly enhance their cash flow and business productivity. However, a business needs to choose free UK accounting software with the right features to do that. In this article, we’ll be discussing seven essential functionalities that you must check before buying the best accounting software.
7 Functionalities To Always Check In An Accounting Software
1. One-Stop Invoicing Features
The most essential set of features to ensure seamless bookkeeping and enhanced cash flow is the invoicing features. Make sure you choose a free UK accounting software that offers a one-stop solution for all your invoicing operations. The invoicing system in the accounting software must store detailed customer information to save time and money in the long run.
Ensure that the accounting system contains features to establish clear payment terms and schedules to enable seamless invoice processing. The most sophisticated accounting software leverage automation to cut down repetitive and tedious tasks. This can be really helpful in invoicing.
Check if the accounting software allows you to enable automated invoicing for clients that call for recurring or interim invoices. Automated invoicing enhances cash flow by ensuring consistency and reduces the chances of delayed invoices and payments.
2. Accounts Receivable
Keeping track of what you owe to your suppliers and making payments on time is an essential part of your accounting operations. Thus, checking how an accounting system manages your accounts receivable is crucial before buying accounting software. The best accounting software in the UK allows you to streamline the management of accounts payable and outgoing payments.
Make sure that the accounting system has a proper system of managing purchase orders and their payments. Keeping track of all those credits that vendors often hand out, as rewards, returns, or refunds also comes under the management of accounts receivable.
Some of the more sophisticated free accounting software UK also allows you to enable automated payments. By setting up automated payments, you can make payments to your vendors and suppliers directly by scheduling bank payments and direct deposits to printing checks.
3. Bank Reconciliation
Most businesses have more than one bank accounts which makes it essential to check for bank reconciliation features while purchasing an accounting system. Account reconciliation is the process of comparing bank statements to the records of the account holder. It allows you to keep track of all your bank accounts and reconcile them.
These features are necessary for your accounting processes as it makes sure that your financial data is accurate. They simplify the process of importing electronic bank statements, compressing an otherwise tedious process down to mere minutes.
4. Payroll Management
Payroll management features enable seamless calculation, processing, and distribution of pay to employees. See if the free accounting software in the UK you’re considering offers full payroll services from calculating time and processing wages to paying payroll taxes. Be sure to check other payroll management features like training management, project management, time and job tracking, taxation, and other compliances. In addition, attendance and leave management are also offered by some of the more advanced accounting systems.
5. User Interface and Friendliness
Typically, accounting systems are designed to be used by any user with little or no knowledge of accounting or bookkeeping. However, some systems might not be as suitable for your business if they require a firm knowledge of accounting or technology. Make sure that you choose the best accounting software in UK that is user-friendly, intuitive, and can be used by anybody in your team- including the people who aren’t accountants or tech-savvy.
6. Payment Processing
Payment processing is another important aspect of accounting operations that you must keep in mind before buying the best accounting software in the UK. Make sure that the accounting system allows you to offer multiple payment options to your customers including digital payments. The best accounting software allows you to integrate the payment option within the invoice and pay directly by clicking on it.
7. Flexibility and Customizability
Furthermore, the accounting software you choose should be flexible and highly functional. It must also enable customization for its customers. You should be able to customize invoices and add your brand elements to them to make them more professional. In addition, make sure you choose free UK accounting software that offers multi-dimensional reporting features. In other words, the solution must allow you to create customized reports according to your company’s needs and targets.
In conclusion, free UK accounting software has a lot to offer to businesses if the features are right. Apart from some features that vary from business to business, there are some features that every business must check while buying an accounting system. From invoicing features to the user interface, all of these seven features are essential for making the most out of your accounting software.