Accounting and Finance, Accounting Software
Accounting and finance reporting are key indirect components to the success of any business. Not only is the actual payment of expenses and documentation of income necessary to adequately plan for future company activities, it helps create an image of your company with vendors and customers. But the topic of accounting and finance goes beyond the regular bookkeeping tasks. It includes providing and analyzing monetary trends in order to more effectively allocate business resources.
The Accountant's Role
Whether you hire an external accounting firm or a full time employee responsible for the company's finances, the account's role goes beyond handling payroll and paying bills. Accounts perform many task in a company include managing accounts receivable and account payable, deciding which accounting methods the company should use, and managing the company's overall budget.
When a business pays more than a couple of employees, it's beneficial to set up a payroll system in which payroll is accrued until paid. This process involves payroll withholdings and taxes. Payroll withholdings required by the government include to be withheld from the employee's gross income include:
- Federal Income Tax
- Social Security
- State Income Tax
Today, accounting software provides a simple way to manage the accounting and finance aspect of your business better. This software can create and track invoices, credit memos, debit memos, generate financial reports at the close of fiscal period and trace sales and expenses. Accounting software provides accountants with the means to easily gather information to prepare a variety of financial statements including:
- Income statements
- Statements of capital
- Balance sheets
- Cash-flow statements