An integrated accounting system can be a blessing for businesses, especially for all small and medium enterprises. It may sound complicated, but it is actually a simple accounting system wherein you can maintain all financial and cost-related transactions in the same accounting books. This means that constant data flow is ensured all across your financial operations, keeping your records updated at all times.
Integrated vs non-integrated accounting system software
An integrated accounting system software centralises all your transactions and connects the various necessary features with each other to generate meaningful analysis. A non-integrated accounting system is the exact opposite of the integrated one, where separate books are maintained for ordering, financial, and cost transactions. In terms of accounting, it is also called a cost ledger accounting system because a separate ledger is maintained for costing transactions.
Here are some of the major differences between an integrated and non-integrated system:
- An integrated system is more advanced in nature, and data flows more naturally through different headers. A non-integrated system makes it difficult to combine data and is a primitive technique.
- The integration methodology reduces human effort and the possibility of error up to a great extent. On the contrary, a non-integrated system requires manual efforts to input data from order books into the books of accounts, increasing work and the possibility of manual errors.
- In an integrated system, as soon as an order is processed and a transaction is complete, you can see real-time data and draw business conclusions. On the other hand, non-integration requires a waiting period as data is not collated instantly for analysis.
- The integrated accounting system is faster, efficient, and accurate than its counterpart, which is slow, delayed and subject to errors.
- While standalone systems do not let you perform sophisticated accounting calculations quickly, this is an advantage offered by an integrated system.
Features and benefits of integrated accounting systems
Are you wondering whether it is worth shifting from a non-integrated to an integrated system of accounting for your small or medium enterprise?
Let us discuss some basic features of the integrated system to solve your confusion!
Integrated ledger: A self-sustaining ledger that holds the details of all types of business transactions under an integrated umbrella. This ledger improves overall efficiency by reducing the effort required to maintain different books for each finance function.
Combined accounts: The integrated ledger combines financial accounting and cost accounting. And as both the accounting fields use data from income and expenditure records of the business, you can avoid a significant amount of monotonous clerical work by combining the two accounts.
Final accounts preparation: This system also ensures that the preparation of final accounts is easy as all the information is present together to be processed. It is almost like starting midway in the process, with half the work already done.
Functional classification: Instead of classifying transactions under cost and finance as their natural headers, this system classifies them functionally. This enables business owners to analyse the true nature of every transaction.
Highlights of myBillBook integrated accounting system
- Free to use accounting and bookkeeping software with paid premium features.
- Easy to use software with guiding video tutorials at every step of the way.
- A huge variety of templates to choose from for all your documentation needs.
- Payment reminders for all receivables and payables in one place.
- Upload and manage complete stock inventory instantly on the go.
- Set alerts to restock the inventory on time.
- Generate important business reports like Profit and Loss statement, GST reports etc.
- Create an online product catalogue to choose from for invoice generation.
- Completely safe and secure with 100% data backup and encryption.
- Permission to add employees for different roles on the software.