Accounting software provides security for financial data through access management, data protection from malicious activities and system failures, and database rules to ensure integrity. It also gives timely analytical financial information and tools for predictive scenarios to management for performance evaluation and planning. Standardizing transactions allows for meaningful period-to-period comparisons across divisions. The accounting system forms the foundation for additional analytics and business intelligence systems by enforcing data abstraction.

1. ACCOUNTING BASICS
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2. INTROTECTION
• Access to information should be managed in a thoughtful
and logical manner. For many companies, accounting
software security is based on a need-to-know basis. In
addition to access management, the data itself should be
secured from malicious activities, as well as system
failure or natural disaster. A secure system provides for
recovery up to the point of failure. Security also means
that database rules are enforced to ensure integrity and
prevent corruption. Strong data types and server-based
referential integrity help ensure that the data is
meaningful and as free from error as possible.

3. Information
• The ultimate goal of an
accounting system is to provide
financial information to
management and decision
makers. For example, how has
the business performed and how
is it likely to perform? A well
designed accounting system
provides its users with real time
analytical information and the
tools to shift into predictive,
“what if” scenarios or
hypothetical planning. The ability
to present relevant data in a
timely, consistent, and concise
manner is a hallmark of the best
financial software systems.
• Standardization As an abstraction
of the business, the financial
accounting system represents a
standardized measure of the
business. Ensuring that all
transactions are recorded in an
approved, standardized format,
allows that abstraction to be
meaningful. The standardization
is important to make meaningful
period-to-period comparisons or
to track geographic, divisional,
departmental, line of business or
managerial performance.

4. Platform for other systems
• The accounting system is generally viewed as the
foundation and system of record for additional
information. Analytics and Business Intelligence
systems all leverage the abstraction that the
accounting system enforces

5. Cost Reduction & Profit Maximization
• Because a good accounting system provides
timely and accurate information, business line
managers can identify and reduce costs and
add margin to their areas of responsibility.

6. Efficiency
• With business software automation and readily
available information, staff can spend less time
rekeying data, searching and collating, and more
time running the business. You can read more about
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7. Improve Service
• Accurate invoices and customer statements, timely
order status updates, and consistent processes all
help improve your customer’s experience. Access to
order history helps your sales and marketing team
tailor up-sell, cross-sell, renewal and other
promotional offers for your existing customer base.

8. Better supply chain visibility and
communication
• Knowing what inventory quantities you have on
hand, what is backordered, and when your suppliers
will ship all help you run your business with smaller
inventories and better inventory turnaround.

9. Improved Cash Management
• If you know your sales order pipeline, your current
inventory position and requirements, and your
current cash commitments, you can manage the cash
requirements of the business without turmoil or the
need for sudden corrective actions.

10. Respond quickly to change
• A powerful, flexible accounting software system will
allow you to respond to rapid market changes,
restructure the company hierarchy, add or remove
lines of business, change pricing models, acquire new
businesses or spin off old ones.

11. For more details
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