If you are related to the accounting field, you must be aware of double entry bookkeeping. If you are not this blog, it will help you gain complete insights on what is double entry accounting. And how to make it easy with cloud accounting software.
Small business companies have a lot of accounting stuff to manage. Therefore, they generally prefer to hire an expert accountant who can handle tedious accounting tasks. On the other hand, managing accounts with a single person do not happen for any firm, big or small. Therefore, they need systematic financial services accounting software to help themselves with perfect double entry bookkeeping tasks.
What is Double Entry Accounting?
Double entry accounting refers to accounting where a single entry is recorded in two or more ways. The first entry is debit in one account, and the second entry is a credit in another account. The aim for which is to balance the total credit and debit for having a consistent accounting experience.
For example, USD 15000 debit from one account needs to be shown as USD 15000 credited in another account.
It helps in tallying the actual credit and debit transactions.
In the USA, the companies follow the ‘Generally Accepted Accounting Principles’ (GAAP). Public companies, small business enterprises, large scale organizations, etc., need to follow GAAP to show their final accounts at the end of the financial year. Online billing software for enterprises aid in managing the accounts efficiently and with clarity.
In other terms, double entry accounting refers to the logic that every business entry has an equal and opposite effect on a minimum of two accounts: debit and credit account.
Here is an infographic from Finances Online about key accounting statistics for the years 2020 and 2021.
How to Manage Accounting for Small Business?
A small business has a lot of micro accounting to manage. Investing in the best accounting software for small businesses helps you manage these micro entries easily and swiftly. Let us understand the same in detail.
Managing any business means managing the operations and managing the revenue ecosystem. Financial planning and management are also critical to any organization’s success. Profitable operations bring in more productivity, and well-maintained books of accounts help with the business’s long-term stability. Hence, both are equally important for small to large companies.
A small business needs to take care of the daily revenue tasks such as incoming cash, expenses, daybooks, ledgers, financial statements, bills, bill vs. payment ratio, etc. All these tasks are easily managed digitally with the help of cloud accounting software like Moon Invoice.
For example, a small business owner must make sure that the total incoming cash, total expenses, unpaid bills, outstanding cheques, tax summary, etc, for managing the business with ease.
Finances give insight into your business. It helps the owner to understand that where the business stands on financial grounds. Hence, managing it becomes crucial for the success of the organization.
Earlier I mentioned using an online billing software for enterprises for managing small business double entry accounting. So, let us understand the same in detail.
Benefits of Investing in Financial Services Accounting Software
Accounting software is designed to take care of your business’s overall accounting and revenue ecosystem. It takes care of every single entry that an account does with manual bookkeeping. But, here, with digital accounting, the tasks are managed, recorded, and calculation with perfection. All you need is a professional person to input the accounting records of your organization.
Double Entry Accounting is best for managing business finances, reducing bookkeeping mistakes or errors, efficient accounting, and revenue stability. The best accounting software for small businesses is designed to help the company get all these benefits via a single solution. So, let us have an overview of the different elements of an accounting and billing solution.
Online billing software for enterprises like Moon Invoice comes with a complete package. Here is what you need to know before investing in cloud accounting software.
Investing in the financial services accounting software helps you manage the following via a digital dashboard or system:
- Customer records
- Invoice management
- Payment management, including payment reminders and auto-alerts.
- Tax summary
- Sales tax reports
- Income receipts
- Business reports and analytics
- Industry-specific tax slabs and summary
- Tax enabled invoicing
- Other financial statements
Moon Invoice: Best Accounting Software for Small Businesses
Like many other financial services accounting software for small businesses, Moon Invoice also serves as the top online billing software with tax enabled invoicing. The goal of our accounting solution is to make invoicing easy and quick. We have therefore invested all our efforts and knowledge in designing an industry-specific and feature-rich cloud accounting software.
For making your small business accounting easy and much more advanced than double entry bookkeeping, we have got the exclusive accounting segments in our Moon Invoice Software.
- Invoice Management
- Expenses Management
- Payment Management
- Financial Report
- Estimate Management
A small business needs to take care of each transaction wisely to help the company to get a clear financial view. Double entry bookkeeping or accounting is one of the oldest and well-known methods for assisting organizations in getting a clear financial goal and accounting books.
Moon Invoice financial services accounting software has been accredited by many small business enterprises in the USA. We have made sure with our features and accounting segments that your business benefits from double entry account management using our single billing and invoicing solution.
To understand how our cloud accounting software helps you manage your business’s accounting and invoicing tasks, you can consult our business manager or visit our website.