May 31, 2024 | Blog

Finance and accounting are two important things for businesses. It’s the number you need to check your revenues, investments, and debts and see whether your business is growing. Modern-day accounting tools and software help companies elevate their financial and operational processes to ensure data accuracy and timeliness regarding tax compliance and other regulatory and governmental requirements. Today, as businesses shift toward new ways of efficiency and cost-effective business, investing in reliable accounting software is necessary to support your long-term business plans and goals.

Last year, President of the Philippines Ferdinand R. Marcos Jr. signed an executive order (EO) directing all government offices to adopt and implement an integrated financial management information system (IFMIS) for processing their transactions. Under the new order,  it will embrace “full digitalization of public financial management (PFM) processes through the IFMIS ”. “The Administration is committed to improve bureaucratic efficiency by capitalizing on digitization efforts to ensure fast and efficient delivery of services to the public,” the EO said.    

On the other ASEAN neighbors like Indonesia. They slowly but surely ensure digital success in their country. Hilman Palaon from The Interpreter shared that Indonesia “deserves more attention for their digital success. “The adoption of e-payments in 2017 revolutionized cash transfer programs, resulting in more than 12 million of the poorest Indonesians gaining access to savings accounts within two years,” he said. “Indonesia has also used digitalization to accelerate inclusive development, reaching the poor with better-targeted social assistance, national identification programs, and financial services.”

Meanwhile, Malaysia will start its mandatory electronic invoice system this coming August 2024. This is part of the long-term plan of the Malaysian government to help businesses comply and be equipped with modern-day accounting software and the overall use of technology as part of their business. During the pandemic, Malaysia proactively invested in digitalization to support small and medium enterprises (SMEs) and proved that digitalization, especially accounting processes, is not only for big companies, as the government recognized SMEs as the “backbone of Malaysia’s business environment.”  

On the other hand, Singapore, one of the advanced ASEAN countries, is taking new steps to ensure its success in the accounting landscape. Gillian Woo of The Business Times revealed that while technology is already available and widely used in the country, people should keep up with it as it demands skills. “Employers are now challenged to build career paths for existing accounting professionals in their organizations to acquire these enhanced skills and capabilities to thrive. The accounting industry continues to evolve, driven by emerging trends and technologies like cloud accounting, artificial intelligence (AI), blockchain, and data analytics that will reshape the profession. Accountants will need to adapt and embrace these technologies to stay competitive,” he said. 

Here are 5 Key Features You Should Look After for Accounting Software  

1. Financial and Accounting Processes  

2. Data Protection and Security  

3. Integration and Automation  

4. Reporting and Data Analysis  

5. Compliance and Regulations
   

These are a few of many scenarios involving accounting software and digital transformation that affect the whole economy, from a business standpoint to national issues, government plans, and even individuals taking advantage of career opportunities. The first step toward all this advancement for your business is to find the right accounting software that fits your business goals and needs. IT Group, Inc. (ITG) and Oracle NetSuite are here to help you understand the importance of awareness and the key features to look after for reliable accounting software. Here are five features you should look after for your next accounting investment. 

Also read: A Guide For Your BIR CAS Application 

Financial and Accounting Processes 

It goes without saying that the most critical part of accounting is the actual process itself. Go after the accounting software that provides you with the financial and accounting processes your business needs, such as general ledger, accounts payable (AP), accounts receivable (AR), bank reconciliation, financial reporting, expense tracking, and payroll processing. All of these are mandatory for your checklist and critical features you should look after; these are a few of many, depending on the scale of your company and accounting needs. The good thing is that Oracle NetSuite, ITG’s technological partner, offers the #1 Cloud ERP to help you optimize and streamline your financial and accounting processes. NetSuite provides real-time financial data and reporting, enabling you to make informed decisions promptly. It has a complete suite of applications, including accounting, ERP, CRM, e-commerce, and more, all integrated into a single platform. This can streamline operations and reduce the need for multiple software solutions.

Data Protection and Security 

Data is essential in accounting, and numbers tell much about your business. If this information is accessible to everyone, it can lead to fraudulent transactions, data manipulation, and security law violations. Imagine competitors getting access to your company’s financial data and information. It will put you at higher risk for cyber threats and make your business vulnerable to cyberattacks. Your accounting software should provide robust security features such as user access controls, encryption, and data backup to protect sensitive financial information. By this, you ensure a secure, accurate, and comprehensive audit trail of your financial records for transparency and accountability. 

Also read: Accounting 101: Manual Vs Computerized Accounting 

For added security, find an accounting software that values user permissions and roles, as it helps to secure your financial data and is accessible to authorized users only. Another thing that you should look after for accounting software that offers data protection and security is how accessible and intuitive the accounting tool is. Is it easy to navigate to the user? Does it enhance your productivity without compromising security? These are all important as they summarize how your chosen software can accommodate the growth of your business, including handling increased transaction volumes and additional users without the fear of having inaccurate data and unsecured financial processes. As the leading Cloud ERP, Oracle NetSuite is perfect for businesses of various sizes who yearn for data protection and security. It can scale as your business grows and is highly customizable, allowing you to tailor it to your business needs and requirements.

Integration and Automation 

Many accounting software in the market provide you with basic accounting needs. However, not all can integrate into your business to automate crucial business processes. Oracle NetSuite sets itself apart by being the #1 Cloud ERP Solution that offers a comprehensive tool to integrate with other software and can automate your manual accounting processes, which will help you increase efficiency and productivity in your business. Invoicing and billing, for example. With NetSuite, you can generate professional invoices and support various payment methods. At the same time, it can automate recurring invoices for subscription-based services. The same goes for inventory management, where NetSuite can help your business operations and financial processes sync together, automate manual tasks, and provide unified and accurate data. 

Also read: Transitioning From Manual to Computerized Accounting 

Some of the best features to look for in accounting software are integration with other business systems, such as CRM and e-commerce platforms, and integration with third-party applications, such as payment gateways or analytics tools, which NetSuite has all. On top of that, NetSuite also supports transactions in multiple currencies and languages, making it suitable for international business operations. Its cloud-based system gives your company the power for remote accessibility, making it ideal for companies with distributed teams or those requiring access from multiple locations.

Reporting and Data Analysis   

Another feature to look after for accounting software is data gathering, reporting, and data analysis. After all, your company needs to know its current financial standing. Tools that provide cost budget creation, expense tracking against budgets, and variance analysis are also essential. In terms of reporting and storing data,  such as document management, to store important financial documents like receipts and invoices for easy access and compliance. Reporting and data analysis for accounting software should also extend to asset management, which helps to track and depreciate company assets, providing insights into asset value and lifecycle management. 

Also read: Steps and Considerations in Choosing the Right Accounting Software

Financial forecasting, trend analysis, and scenario planning are also crucial for accounting software. NetSuite provides advanced reporting and analytics tools to gain insights into your financial performance and business operations. It helps with financial compliance by offering features for tax calculations and reporting and support for international accounting standards. Moreover, it supports easy data migration from existing systems, reducing the hassle of transitioning to the new software.

Compliance and Regulations

The worst-case scenario for a company is to lose its reputation due to its lack of compliance and regulations. Not to mention the domino effect it will cause your company for not following what mandates and required by the law. It sends the wrong message to the public, especially your existing and potential customers. It also invites cyber threats and attacks as your company is at a vulnerable stake, where hackers can exploit your situation. To rub salt into the wound, hefty penalties are waiting for your business to settle the possible violations and cases on your own just because compliance in your accounting and financial process isn’t part of your business plans.  

Also read: Do’s and Don’t When Your Business Starts to Expand

Aside from the technical requirements and unique features that help with tax calculations, generate tax forms, and support compliance with local tax regulations, ensure that the solution provider and the accounting software they offer also comply with relevant financial and accounting regulations in your region

or industry, like the BIR CAS application in the Philippines or Singapore’s mandatory e-invoicing requirements. Research the reputation and history of the software provider. A reputable vendor is more likely to provide reliable software and support. When evaluating accounting software, prioritize features that align with your business’ specific needs, industry requirements, and long-term objectives. It’s essential to thoroughly assess each software option to find the best fit for your organization’s financial management needs.

Let’s Venture Together 

ITG has been the leading IT Solution Partner in the Philippines and the ASEAN region. ITG is your leading technology partner for system-wide innovative solutions to accelerate your business plans and goals, delivering seamless integrations and processes, from Business Management Solutions, IT Management, Integration & Automation, and Enterprise Data Management to IT Infrastructure. We are also an ISO 9001:2015 Certified company with regional offices located in Indonesia, Singapore, and Malaysia, helping 200+ clients across the region on their digital transformation journey, along with our technological partners, gaining a solid portfolio of 250+ successful projects.  

With our technological partner, Oracle NetSuite, and its supreme cloud-based enterprise resource planning software suite, which offers a wide range of features, including accounting and financial management capabilities, we can help you achieve digital transformation and optimize your accounting and operational processes. Oracle NetSuite is known for its comprehensive suite of tools designed to streamline various aspects of business operations. Learn more about how we can help you today.