How Accounting software improve Productivity

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Lead Author - Faheem Salim Bagwan, Co-Author - Vera Gelashvili. 6-8 min Read.


 Let us start with the basics.
Many of us are involved in accounting on day-to-day basis, but do not know how accounting actually started as a discipline.

So we start with the definition and history of accounting.

Accounting Definition: 

Accounting is a language of business and it has been defined as art of register, classification and resuming the financial transactions in monetary terms.

Therefore, we can say that accounting is a social science that records all the economic events in a systematic way and  in chronological order of a specific company. The main aim of the accounting is to control economic resources of the company and facilitate information to its different stakeholders for decision making.

Accounting History:
Accounting is an activity as old as mankind itself. Since the beginning of time, even long before of writing, people have had to keep order in their lives and especially in economic matters, using the most basic way of managing their resources and assets through exchange or organizing in a way that would be beneficial for them.

After that, accounting has always been part of the economic life of mankind. In the 15th century, in the city of Venice, an Italian Franciscan friar Luca de Pacioli has published the book called Summa de Arithmetica, geometria, proportioni et proportionalita where he had included a chapter of the accounting. In this chapter, the author has described the accounting double-entry accounting system (or double-entry bookkeeping), which is the basis of current accounting.
Over the years after its first written appearance, double-entry bookkeeping has improved, changes have been made and it has adapted to people's economic lives. Today, there are different organizations that control and issue accounting standards, and companies are obliged to apply those rules to their annual accounts.
After this brief brush up on the history and background, let us explore now the key concepts involved in accounting.

Accounting concepts, roles and processes:


Accounting plays an important role in the life of companies and to understand first must be explained the basic concepts of this. Some of them are defined below.
Accounting transaction. All financial and economic events that have a monetary impact on the company's financial status.
Double-entry bookkeeping. Accounting transactions are recorded in the accounting books, where every entry to an account requires a corresponding and opposite entry to a different account. The double-entry has two equal sides known as debit or credit. Every business transaction must be recorded in a minimum of two accounts.
Financial Statements. All companies, regardless of their size, legal status or other differential features, must prepare accounting documents at least once a year. These documents that contains economic, financial and qualitative information of the company are called financial statements. Financial Statements contain Balance Sheet, Income Statement, Cash Flow Statement,  Statement of changes in Net Equity and Explanatory Notes. Components of Financial Statement are: Assets, Liabilities, Equity, Expenses and Revenues.
Assets. A resource with economic value owned or controlled by company with the expectation that it will provide future benefit. Assets are classified into two groups: Non-current assets and Current assets. Non-current assets include tangible and intangible assets that are not intended to be sold in a short term. Current assets are resources and rights that could be consumed within one year.
Liabilities. The company's financial debt or obligations that are settled over time through the transfer of economic benefits including money, goods or services. Liabilities are divided as: Non-current liabilities that are obligations in a long term and Current liabilities that are obligations that the company must settle within one year.
[Resource: Bean Counter E-books]

 Equity. Equity is a residual interest in the company's assets after deducting all its liabilities. It is calculated through the following formula: Total assets - Total liabilities = Equity. Therefore, equity is financial resources that are not borrowings.
Expenses. An expense consists of the economic costs that the company incurs through its operations to earn revenue.  That means that expenses decrease economic benefit of the company.
Revenues. An income that is increase in the company's equity during the accounting period that comes from its normal business activities. Normally, the activity of the company intends to the sale of goods and services providing.
Keeping business accounts successfully requires qualified people in this area, since the figure of the accountant is considered essential to manage efficiently the business, distribute correctly the economic resources or carry out financial analyses that help the company to grow. That's why there are different accounting roles for people who like accounting, among them we can distinguish: chartered accountant, tax accountant, auditing accountant, management accountant, etc.
Companies and accountants must take into account the accounting process, which has the following structure:
1.   identification of accounting events
2.   Recording the transactions, that is classification
3.   Measurement and valuation of accounting events
4.   Summarising obtained information in financial statements
5.   Analysis and interpretation
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With technology keeping its pace, there is a constant need for accounting software and tools. Now let's explore the famous software tools out in the market that can help us improve our corporate productivity. Below is a list of software tools that can be useful:

Software tools to increase Productivity:
1. Botkeeper
It's Financial Hub is the all-in-one bookkeeping software for your entire team.
Improve the efficiency of your accounting team with tools that boost productivity in Botkeeper
Spend more time helping your business grow, and less time on menial tasks with Botkeeper
Botkeeper gives you modern bookkeeping and accounting tools to adapt to today’s business processes.
With Botkeeper, you’ll have 360 degree insight into your business, what’s working and what’s not.
  • Monthly cash basis transaction categorization
  • Monthly bank & credit card reconciliations
  • Payroll Journal Entries
  • Standard Balance Sheet, Income Statement, & Statement of Cash Flow reports
  • Overall Book Review for any unusual balances or discrepancies
  • Starter package starts at $79/month and scales up based on total expenses and unique needs.

Botkeeper Starter Pack (Up to $50K Monthly Expenses) starts at $79 per client per month that includes following services:

2. Quickbooks

Quickbooks has four main offerings. Each offering includes a full list of features included.
The four offerings are:
Below is a short demo in the life of Quickbooks Self-employed:


I will keep adding more useful tools that you can use for your accounting needs.

Please share your favorite accounting tool in the comments below.

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