An accounting software is an application widely used by accountants and businessmen to organize and manage their finances in one place. Normally, accounting software comes with a myriad of features that are tailored to all business needs. It helps businesses to keep track of their accounts.  

Most of the software allows the user to create and send invoices, manage expenses, record transactions, reconcile bank, filing taxes, generate reports, and much more. Accounting software has an edge over traditional accounting process by delivering comprehensive data reports. These analysis reports are the key element to make important decisions and allow efficient forecasting. 

There are accounting platforms that offer free accounting services along with accountant consulting. They help to develop small businesses by enabling them to stay on top of their finances. Today, Many accounting platforms have adopted advanced technology like cloud computing, blockchain, and triple entry which ensure secure and reliable bookkeeping.  

What Does an Accounting System Do? 

Manages cash flow – from supplier expenses to customer income, an accounting system manages and streamlines every cash inflow and outflow. While older methods of accounting require hours of effort for manual entries, the automated accounting systems make faster entries and better organization. 

Generate finance reports – with all the input data in the system, accounting software generates efficient financial reports. It mostly comprises of profit and loss report, trial balance report etc with easily comprehensible data.  

The world has lots of false impressions regarding many professions, especially jobs that seem incomprehensible to the public. A prime example of this is accounting. Many people including business owners have misconceptions on financial matters. It is important to know the actual truth behind the stereotyped beliefs so that you avoid serious consequences in the future. Here, we are throwing some light upon those accounting myths and facts.

Myth 1: My business is small, I don’t need an Accounting Software.

Accounting software is necessary for even small businesses to stay on top of their finances. It makes cash handling easier and keeps business intact. These digital solutions cater specifically to your business needs. Accounting software speeds up the data entry process, that is with less time and effort you get efficient financial results of your company. It eliminates manual errors and improves accuracy. All these benefits your company to make better decisions and forecasting.  

Myth 2: Accounting is only important during tax season. 

Tax season is an important and busy period for all businesses and accountants. Some companies make a huge mistake by making their accounts active only during this tax season. Rather, it is important to keep track of your books throughout the year. This helps data entry and tax filing much easier. Staying on top of your finances all through the year ensures that your business performance is intact.  

Myth 3: It is not affordable to own accounting software. 

This varies according to the different accounting software you go for. There are many accounting software that are affordable to your business in the market. There are accounting platforms that even give free packages. Certain online accounting systems provide different plans from which a user can choose a suitable one that complies with their business needs. This allows the user to customize financing according to their business niche and pay only for what he uses.  

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lockchain is one of the most looked forward technology in today’s digital world. The tech world finds immense potential for this amazing technology to disrupt finance, supply chain, real estate, and many other industry sectors. 

Blockchain is a digital record-keeping system that records and distributes assets in different places at the same time. Blockchain can only be updated by consensus between users in the system, and once new data is recorded it can never be removed.  

As accounting demands for reliable distribution of ledger, blockchain becomes the mechanism for achieving the same. In blockchain, data is cryptographically stored and shared through systems; it promises high-level security without being handed over to a third-party. Blockchain also enable users to keep track of their activity or data and detect frauds. This service saves your money by disabling third-party interference, keeping track of your data, giving better data analytics, and more. 

Simply put, blockchain and accounting is a perfect mix to bring effective financial operations. Now being in the incubation period, unleashing the full potential of blockchain can revamp the accounting management in the upcoming years. Here we introduce some accounting software that incorporate blockchain technology for a secure, transparent and immutable financial operations. 

SimpleAccounts

SimpleAccounts is an all-in-one accounting software with advanced features catering SMEs and accountants. SimpleAccounts is introducing an efficient blockchain feature that helps you to run a hassle-free business by managing your books incredibly. It enables you to make efficient forecasting with their elementary reports and statements absolutely free. 

Secure, consistent, real-time – this blockchain enabled triple-entry accounting software has an edge over other accounting systems. SimpleAccounts’ blockchain based technology allows for developing an immutable accounting ledger and automated account auditing using a triple-entry accounting system, assuring every transaction is immutable, tracked, and verified.  

Integrating SimpleAccounts’ service to your business can bring manifold benefits to your business. With its reliable bank-reconciliation feature, sync your bank account with the SimpleAccounts for an error-free, fast and accurate financial statements. The blockchain enabled accounting software detects frauds, tracks receivables and manage transactions to make your business good-standing. 

SimpleAccounts is the one-stop solution for all your accounting related problems. We streamline your invoices, VAT reports, and cash flow with the most secure blockchain technology. Get insights into your business status anytime, anywhere in a glance through our proficiently designed dashboard. 

SARA Technologies

SARA Technologies offers the most accessible and most efficient blockchain accounting software to manage your organization accounts and ledgers, without the risk of data tampering. They have satisfied a massive range of business accounting needs by their highly secured and technically superior accounting based on blockchain technology.  

SARA Technologies offers the most accessible and most efficient blockchain accounting software to manage your organization accounts and ledgers, without the risk of data tampering. They have satisfied a massive range of business accounting needs by their highly secured and technically superior accounting based on blockchain technology.  

The integration of blockchain into the accounting system free-up the businesses from the headaches of maintaining separate records as per the transaction receipts. Organizations can record their transactions right into a decentralized ledger, forming an interlocking arrangement of abiding accounts and records. 

The team of blockchain professionals here have helped a vast number of clients with the accounting software development services and assisted them to establish a highly secured accounting system using blockchain technology. 

As a blockchain software developer, it understands the importance of accounting transactions, and financial records for your business thus offer smooth audit services as well.

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t’s not unusual that business owners get busy with several management operations. One among them is the bookkeeping process of the company. It can get you caught up for days and months. This is why companies have started adopting different accounting systems to run their business hassle-free.

Today, businesses have a higher scope for improvement through several ways. With better and enhanced technology of accounting software, every establishment is finding roads to their financial destination. You cannot deny the fantastic ways by which these accounting systems improve your business sustainably. Let’s look at some of them –

8. Financial Data Security 

A company’s most confidential information is the financial data. You have to make sure that the financial information is highly secured, or it can create a huge data loss in your company. Data security planning is important and accounting software ensures that. With end to end cloud security or protected firewalls, accounting systems safeguard your financial information strongly. Unless you are not granted rights to enter into the system, you cannot see the data. 

10. Determine Business Profit 

The ultimate purpose of running most of the business, whether standalone or in partnership, is to determine the profit of the firm. Without systematically computing the business revenue and expenses, it is difficult to evaluate the profit earned by the business. A business may or may not be profitable initially but measuring and streamlining it throughout the course of time is important.  

VATor value-added tax is a consumption tax levied on goods and services at each stage of its sale. Initiating from the production stage to the final consumer of the product/service, each stage of the value addition chain is liable for tax payment.  

VAT is meant for paying a tax at every stage of sale, but the ones who pay the tax can reduce it by receiving the credit at the time of output. This way, VAT prevents the issue of double taxation that existed in the previous sales tax laws. 

VAT was introduced as a relief to the conventional sales tax system, where only the retailer collected the tax from the final buyer. The main aim behind the introduction of VAT was to eliminate the presence of double taxation and the cascading effect from the then existing sales tax structure. 

VAT in UAE 

Value Added Tax was introduced in the UAE on 1 January 2018. The VAT helps the UAE government to rely less on oil and hydrocarbons as a source of income. Moreover, it acts as an alternative of the source of revenue for UAE to provide high-quality public services. More than Dh12 billion is estimated to be generated as additional revenue after the first year of tax implementation. The standard rate of VAT is 5 per cent.  

How does it work?

• A business is liable to register for VAT if it reports annual revenues of over AED 375,000.
•  It is optional for companies whose revenues fall between AED 187,500 and AED 375,000 per annum.
• When a business pays the tax to the government collected from the customer, it receives a refund of the tax paid to its suppliers from the government.
• Certain designated zones of Free zones in the country as defined by the UAE cabinet will be exempted from the payment of tax.

There are 3 categories under VAT in UAE: 

• 5% Value Added Tax
• Zero-rated supplies
• Exempt supplies

School education and public higher education have a zero-rated VAT, though educational supplies are applicable for VAT. Certain non-preventive healthcare services are liable for tax payment. It is to be noted that domestic passenger transportation is exempted from VAT. Food, beverages, telecommunications and electronic services are accountable for VAT. 

For every business, from startups to conglomerates, invoicing is the centerpiece of their proper functioning. Let’s breakdown this term to its simpler form.  

An invoice is nothing but a bill or document that the seller sends the buyer notifying the payment terms. Payment terms may include the transaction list, payment amount and date, sometimes due amount to be paid too.  

Invoice is an itemized bill for goods sold or services provided, containing individual prices, the total charge, and the terms. 
– Dictionary.com

Invoicing is a significant part of business as it is the element that enables quick payment of the services or products provided by them.   

Invoicing is important for both the sender and receiver. For the sender it’s a provision for recording statements, tracking, and speeding up the payment. The recipient on the other hand gets the detailed itemized record. There are different invoices created by business for its various purposes.  

Standard invoice – Most common type issued by businesses, industries.

Credit invoice – Issued for noticing a client about an offer, discount.

Debit invoice – Shows the balance amount to be paid by the client.

Pro-forma invoice – Invoice issued before completing the work stating the estimate.

Interim invoice – Intermittent invoices sent to the client during a large project.

Creating and sending invoices can be done in a matter of seconds. It also allows you to manage your business accounting in a breeze.