The Critical Importance Of Accounting Software And Developers To A Business

Web Developers

We realize many individuals are not aware of the difference between a software developer, and a web developer. Although the two fields are closely related, there are numerous differences. Our web developers usually work strictly with the development of websites. This includes understanding the needs of the client, the actual development of the site including the various pages, content, fonts, themes, colors, style, the call for action, details of the services or products, etc. The site is then tested so all bugs are removed, implemented, monitored, and updated as necessary. Our web developers may work on the entire process or in one particular area such as the frontend, backend, or as in full stack development. Our full-stack developers must have a complete understanding of every layer present in the construction and application of a website. We believe this requires not only a genuine interest in the field but a mastery of web development. A good full stack web developer will generally lead the team, and make the process function with smoothness and efficiency. 

Software Developers

We often refer to a software developer as a software engineer. This title encompasses a much wider range of skills and the fulfillment of various roles. Although a software developer may cover the same territory as a web developer, ours are usually more involved with building software applications. This includes the design and maintenance of the application. Our software developers must be familiar with the code, and be able to solve problems. Their skills generally include computer science, algorithms, and data structures. The actual duties expected of a software developer are not consistent, although an expertise in programming is required. The expectations vary with the individual requiring their services, and what is expected. Our technologies and programming languages must be understood by all our software developers. 

Accounting Software 

Our accounting software packages are computer programs used by our accountants and bookkeepers in both recording and reporting on our company’s financial transactions. The functionality of our financial accounting software packages varies with our specific needs for each project. Sometimes we require a customized solution to a vast amount of data can be effectively implemented throughout all our different departments. For some of our smaller projects, we have used software available right off the shelf or accounting freeware. 

The Breakdown of Accounting Software

Our accounting software has been invaluable as a resource for our business requirements. We use this software to efficiently track the details of our financial transactions, and the analysis and reporting features are nearly instantaneous. In the past, we performed these operations by hand, and this required a lot of time, personnel, and enormous transaction journals. The labor necessary for ad-hoc reporting was completely impractical due to the extent of time is required to consolidate numerous manual entries. Since these tasks have been automated with our current accounting software, our costs for the accounting department have been drastically reduced, our reporting has become much more efficient and timely, and we are able to make increasingly better financial decisions. The combination of our computer programs and our best accounting app allow us to facilitate the trading regarding our financial products, including currencies and stocks. Our software developers have provided programs giving our clients the ability to manage their account and participate in the trade of financial products. The interface of our trades determines the specific type of information we research, and what services we can provide with the software. We have this software developed to enhance both our services and our products. 


The Breakdown of Trading Software

The increasing popularity of ECN’s or electronic communication networks has prompted our company to develop trading software to work in conjunction with our business accounting app. We realize the importance of the alternative trading networks because these networks are what allow us to pursue trading while remaining outside of the traditional Bourses and stock exchanges. Our use of the ECN’s has drastically lowered our transaction costs, and given us the ability to provide numerous discounts to our clients. Some of our clients are being provided with these services at an extremely low cost. 

The Journal

Our journal is one of the best accounting apps for business. Although journaling encompasses a wide variety of financial transaction, these can be broken down. The purpose of our journal includes:
  • Providing a detailed account of all financial transactions
  • Future reconciling
  • Transferring official accounting records including the general ledger
  • A compilation of transaction dates
  • A record of accounts
  • A record of transaction amounts
  • A double-entry method for bookkeeping
  • Effective record keeping
  • A concise source for reviews
  • A record of the trade process
  • A record of the auditing process
  • A record of the general ledger

Double Entry

We refer to the concept of current accounting and bookkeeping as the double entry. We base this term on the fact all our financial transactions have opposite yet equal effects regarding a minimum of two different accounts. We use double entry in the satisfaction of the equation, liabilities, and equity equal assets. We maintain this relationship by recording and maintaining every entry. All our transactions are recorded using the terms of credits or debits with our double entry system. Since a debit present in one of our accounts can always be offset with a credit contained in another account, the sum of all debts is always a perfect equal to the sum of credits. The use of the double entry system makes it easier on our accounting and bookkeeping departments. We can prepare financial statements with more accuracy directly from the accounting books, and any errors are easily detected.


The Different Types of Financial Accounts

Accounting and bookkeeping both represent a way of recording our financial transactions with the use of monetary terms. We consider our business transactions to be an exchange between us and our economic entities regarding all financial interests. We classify our accounts as the actual accounting and bookkeeping required to record these transactions. We often use an easy accounting app for the seven account types necessary for our business transactions. These are:
  1. Assets
  2. Liabilities
  3. Revenue
  4. Equity
  5. Gains
  6. Losses
  7. Expenses
The job of our bookkeeping department is to track any accounting changes regarding the amount of money present in any of these seven areas. This is a continuous process necessary for conducting our business activities. We classify accounting as a comprehensive and systematic approach to record our financial transactions as they pertain to our business. This also includes the process we use to summarize, analyze, and report these transactions to our tax collection entities and our oversight agencies. Our accounting process is one of the most important functions regarding our business. Sometimes these functions are handled by one of our bookkeepers or accountants, and sometimes the process for larger accounts requires the attention of our sizable finance department. This process can be complicated and require the attention of dozens of our employees. 


The Breakdown of Accounting

We rely on the reports generated by several different streams of accounting. This includes our management accounting and cost accounting. This information is invaluable in our ability to make informed and educated business decisions. Although our basic requirement in accounting functions can be handled by our bookkeeping department, our advanced accounting requires qualified accountants with specific designations. This includes:
  1. CPA’s or Certified Public Accountants
  2. CA’s or Chartered Accountants
  3. CMA’s or Certified Management Accountants
  4. CGA’s or Certified General Accountant


The Financial Statements

Since our financial statements summarize the operations of our company, our cash flows and financial position over specific periods are critical. These statements must be concise, and use thousands of financial transactions as the basis. To achieve our desired results, all our accountants have undergone years of study, passed extremely rigorous examinations, and have a minimum requirement for their experience in practical accounting. Our financial software must be designed to accommodate our needs. 


The SaaS

SaaS is an abbreviation for Software-as-a-Service. This is the term used for a software licensing model when the software is offered using a subscription basis. This is applicable because some of our software is not located in-house but on an external server. We access our SaaS with our web browser, and both a password and username are required for our employees before they can log into our system. Since we do not want every user to have our software installed on their computers, we provide the ability to access the program through the internet. We use Saas for our human resources, customer retention, and procurement departments. Our adaptation of SaaS technology has given us a distinct edge in the world of business. Our use of SaaS coincides with our use of cloud-based computing. Prior to the availability of SaaS, we had to buy our updates on compact discs before we could update our software. This process took a great deal of time and numerous employees. We feel downloading the necessary updates for our software using the internet is more productive and cost-effective. We simply purchase the required licenses instead of the discs. 

Settlement Date Accounting 

One of the accounting methods used by our bookkeepers and accountants is called settlement date accounting. We use this to record our transactions within our company ledger once the transactions have reached completion. We categorize completions as when both parties have satisfied the required performance. This means all interest associated with our transactions must be accrued before we can settle the transaction with our settlement date accounting software. This is a very important policy to our company, and all transactions are required to be duly reported in our company’s general ledger. We use this ledger in the creation of the company’s financial statements. We consider settlement date accounting as normal for all our larger transactions because this is the material we use for our financial operations and representation. This becomes critical when a transaction begins towards the end of one year but does not reach completion until the following year. Our financial transactions for the year the transaction originated will not reflect the amount of the transaction since it is reflected in the year completed. 


The Account History

We classify our account history as our activity since the beginning of our company. The account history of our bank account includes all our transactions and passive entries, and this includes the interest earned on our balances. We refer to our account history as our company ledger despite where the account is being held. We believe our account history is an important tool for the identification of any attempted identity theft or fraud by our credit card companies. They can identify any transactions not normal for our company by the place of purchase, or the amount of the transaction. We retain our account history documents because we believe this information is extremely important. Our company receives a statement each month from all our account holders showing our history for that specific month. Our history is securely recorded in our financial software. 

The Chart of Accounts

Our chart of accounting software has a listing of our accounts, the type of account, and the balance of the account. The order is the same as it appears in our company’s financial statements. We use the term chart of accounts as an official accounting for this information. This includes both our income-statement accounts and our balance-sheet accounts. Our chart of accounts shows our liabilities, assets, revenues, equity, and expenses. We keep this information in one place and break it down into subcategories. We assign each chart a multidigit number so the type of account is easy to identify. Our chart of accounts includes:
  • Checking account
  • Savings account
  • Inventory assets
  • Undeposited funds
  • Accounts receivable
  • Petty cash balance
  • Accounts payable
  • Prepaid insurance
  • Stockholders’ equity
  • Buildings
  • Vehicles
  • Payroll liabilities
  • Company credit cards
  • And more
Our chart of accounts additionally includes dozens of accounts. Since our company is both complex and large, this is reflected in our chart of accounts. This is where our accounting software is critical. This software allows us to correctly and efficiently maintain and categorize our accounting entries. This provides us with an organized and accurate chart of accounts.