Business operations are becoming complex and more difficult to manage day by day due to increase in new accounting standards, changes in laws and regulations in order to better regulate the corporate sector of the economy.
The influx of a huge accounting data from basic data entry of accounting transactions till finalization of financial statements may be challenging and difficult to manage even for small and medium industries, if not taken proper measures with the changes in technology and accounting standards.
This may distort the financial health of any organization thus it should change its strategies with the changes in technology and accounting standards.
To cop with the challenges of modern era the sage has developed an accounting software names as Enterprise Resource Planning (ERP) through which one can digitize, centralize and integrate all the functions of the organization like paperless to your accounts payable.
Through this software an entity can integrate its procurement function with its vendors accounting software in order to reduce time between placing an order and the delivery of raw material and product components and also minimises the risk of stock outs.
Thus sage is very beneficial to every kind of entity whether engaged in manufacturing, service sector or non profit organizations, it can save time, money, and storage space.
Advantages of sage software
An organization can be managed through different functions or departments such as procurement, sales, marketing, research and development, human resource and information technology.
Sage software integrates and interlinks the accounting data from all components of the organization but in this article we will a bit more focus on how to paperless accounts payable through using sage software.
There are countless benefits of ERP software. The discussion of every technical aspect of this software at length is not possible in a single article but will try to brief most prominent advantages. These advantages are as under:
- It saves the time, money, and storage space of the user entity. The manual procedure of handling accounting data requires enough storage space, manpower to handle the files which also requires labor cost and also plenty of time to handle the hard files however the sage has reduced the cost of all the relevant factors
- The nonusage of paper in recording and maintaining accounts payable as well as other accounting data is most eco-friendly.
- It gives real-time access to employees of all functions around the globe, which lessens many complexities for the user entity especially for the bigger entities such as the multinational companies and global organizations.
- Every authorized person responsible for parking and analyzing accounts payable can have real-time access to the organization’s data which smoothens the operations of the business entity.
- ERP software has immensely reduced the cost related to printers and papers, which was required under the manual method of bookkeeping.
- Invoices from vendors can be easily attached in the software for record purposes and can also be used for the aging analysis of payables.
- Technical as well as human errors can be time to identify and settle the issues before finalization of the accounts.
- Sage has reduced the risk of duplication to almost zero because of its built-in potential of pop up messages in case of duplication.
- Authority checks can be applied as per the authority matrix of the organization this can minimize the risk of the presence of fake vendors.
- Security checks can be applied so that only authorized personnel can access the data and this ensures the accountability of the responsible employee as well as the authenticity of payables.
- Accounting information related to the payables and other accounts heads can be easily traced in case of need in an emergency situation.
- The prime benefit of this software is that it can be easily customized as per the accounting needs of the user entity.
- Some countries have strict regulation to maintain the accounting records for a specified time, the software has made it easy to keep safe maintaining accounting records.
- Physical records can be easily manipulated and destroyed, the maintenance of accounting records in soft form has almost reduced the risk.
Thus in a nutshell, the usage of sage software for recording and maintaining the accounting data relevant to accounts payables as well as other heads are not only safe but also very economical because it has immensely reduced the time, money, and space requirement for handling the accounting records in the form of files.
This results in free and fair financial statements which are the ultimate tool for the user of financial statements such as investors, financial institutions, and taxation authorities.