Cost accounting deals with reporting and analysis leading to an improvement of inter-business cost control and efficiency. It is a system of operational management analysis. For practical cost accounting, the benefit of cost accounting software is undeniable.
A cost accounting software represents a framework that is used by firms to estimate the product cost for profitability analysis, cost control, and inventory valuation. It goes hand-in-hand with the role of a chartered accountant. According to studies in 2017, more than one-third of the companies are starting to use accounting software in India.
Market Analysis for Accounting Software
According to recent reports around 3000 companies are looking to upgrade their accounting solutions. However, only a specific few companies approached a consulting firm regarding the choice of the software. Here is a more detailed insight into the current scenario –
- Around 37% of the enterprises were buying accounting software for the first time.
- 35% of the companies who were looking for upgrades were QuickBooks users, and around 11% were Sage 50 users.
- Analyzing the companies, around 20% required better solutions to handle payroll, inventory, and invoice as well along with accounting.
- Business intelligence features were the primary choice of 70% of companies having more than 50 employees.
- Around 41% of the large companies were not interested in investing in cloud-based accounting solutions.
Why Companies Opt for Accounting Software?
Knowledge of software programs is one of the essential qualities of an accountant. The analysis shows that different sections of companies had their reason for choosing accounting software.
- 43% of the companies opted for accounting software based on better functionality.
- 29% were looking to replacing legacy systems.
- 17% required upgraded systems to offer excellent usability.
What were the Features Most in Demand?
There was a high demand for multi-faceted accounting solutions which usually grow with the company’s size. The more the budget, the more is the need for financial analysis and prediction features with accounting solutions. Opting for a loan for chartered accountants can help with the finances.
Around 20% of the companies needed accounting software for payroll, inventory and invoicing. Approximately 72% of the companies which employ more than 50 staff required accounting software package for business intelligence and budgeting. There were other features worth considering by larger companies such as fixed assets, fund accounting, and procurement.
What are the Different Accounting Software Packages Available?
Given below are the top 5 accounting software packages in India.
- Tally. ERP 9: It is one of the most popular accounting software programs in the market.
- Profit books: Profit books are a popular accounting software program that saves time and manages finances more effectively.
- Zoho Books: Zoho Books is an online accounting software program that is designed specifically for small and medium enterprises.
- Busy: It helps the businesses in GST invoicing, multiple currency financial accounting and report generation, TDS and TCS compliance, and also the MIS reports and analysis.
- QuickBooks: It is an online accounting software app that has a user-friendly interface and tools. It offers more than 40 reports along with a profit and loss account, balance sheet, and cash flow statements.
Upgrading your systems may require significant investment. However, opting for software opens up many chartered accountant practice opportunities. To take care of the investment without putting pressure on the finances a lot of financial institutions provide loan options along with various other facilities making them an ideal option.
Cost accounting contributes to preparing the required financial statements, an area that is otherwise reserved for financial accounting. Using cost accounting software can make it much easier for the CA firm. If you are still thinking whether or not you should opt for an accounting system, you should stop. Getting your systems upgraded can be the smartest decision for your business.