The practicality of modern accounting software

It is projected that the global accounting software market will grow to some R660 billion by 2033.

The automation of accounting procedures and financial activities across industries has completely changed the international business landscape. In most large companies, manual data capturing processes have been relegated to the past, and it is only in the most extreme cases that these are still implemented.

However, as unprecedented as this growth has been, many companies still struggle to find accounting software that works best for them.

The consequences can be dire if the technology is not in alignment with business needs. Vast sums of money are in play and having accounting solutions that end-users find difficult to navigate can wreak havoc. The so-called ‘learning curve’ for employees to understand the software can also be very time-consuming as well as costly.

It is also worth noting that accounting software adoption among small businesses is not nearly as high as it is among bigger firms. Some studies have shown that as much as 51% of small businesses do not use any form of financial management software, many believing the use of spreadsheets has served them well so far and there is no need to change.

While Stephen Howe, director of South African business solutions provider Times 3 Technologies, understands the reluctance on the part of small-business owners, he also stresses that modern accounting solutions are not as daunting as they are made out to be. ‘Tech speak’ can confuse people, but the reality is that this software is quite simple to use.

“Because modern accounting software is cloud-based, it can be accessed from any Internet-enabled device at any time. It ultimately allows one to perform all the tasks and or functions that would have been done manually, just faster and more efficiently with numerous additional benefits,” Howe says.

“One of the biggest advantages is that it saves time, freeing up staff to focus on optimising other aspects of the business. But it also eradicates errors that can occur with manual inputting, making for more accurate data. And, because owners and managers are given financial insights in real time, decisions can be made at a faster pace than before.”

He advises business owners to focus on getting the basics right when selecting accounting software. Delving into complex add-ons and functionalities can be overwhelming, particularly when employees accustomed to doing things a certain way need to be convinced that a new solution will make their lives easier.

Howe recommends software with the following basic functionalities will help make the transition from manual to digital accounting much simpler:

• An easy-to-use interface that enables staff to find what they need without having to go through arduous training sessions.
• Software that is easy to customise to align with current ways of working.
• Solutions that easily integrate into existing systems.
• Customer support that can be accessed at any time.
• Easy-to-understand training manuals that are accessible at the click of a mouse.

He says a business solutions provider like Sage has mastered the art of offering simple software solutions. Its Intacct product, for example, streamlines processes like accounts payable, accounts receivable, and dashboards and reporting.

“For me, one of the key functions of solid, easy-to-use software is flexibility. No two businesses are the same, and every company has its own experiences of inventory management and processing orders. That means the software must be adaptable to the business, not the other way round.

“I think once businesses, particularly smaller ones, understand that modern software makes this possible, there will be far greater uptake by South Africa’s SME sector,” Howe concludes.