The incorporation of technology in the accounting sector has been a game-changer. Few industries have experienced the magnitude of shift as the one brought about in accounting. The digitalization of accounting data and the integration of accounting software tools for the presentation, analysis, and evaluation of financial information have transformed the industry.
The global accounting software market is expected to be worth $117 million by 2026. Currently, over 78% of small to medium businesses rely on cloud computing accounting solutions, while this number is 58% for large businesses. This technological integration is expected to increase further as AI capabilities become increasingly sophisticated and allow businesses to use accounting software tools to provide practical solutions and advice in terms of future business strategy.
Accounting software tools are being used in every industry to automate, streamline, and speed up processes. Staffing agencies have also benefited tremendously from the use of accounting software.
Benefits of Accounting Software for Staffing Agencies
Accounting software tools hold great potential in terms of aiding staffing agencies to streamline operations and improve efficiency by automating important tasks. Here are a few benefits that custom accounting software provides to staffing agencies:
· Automated Payroll Processing
Payroll computation, payment, and recording are tedious but necessary tasks. Staffing agencies usually have several employees. Aside from the sheer volume of employees, complexities arise when employees are hired at varying wage rates. Rates also vary depending upon the status of the employment, permanent, temporary, part-time etc.
A staffing accounting software, such as Senegal Software, customized to the company’s needs, automatically calculates the payment to each employee instantly. It can also automate the payment process by executing payment transactions on a specified date through online funds transfer. The software can accurately keep track of the clock-in and clock-out times of each employee and compute the salary based on attendance.
· Standardized Billing
Staffing agencies can utilize accounting software for billing their clients. This means generating and mailing out invoices and following up with clients for payment purposes. Each invoice is categorized so it is clearly known which invoices have been paid and which remain unpaid.
· Making Financial Statements
Every business requires the calculation of financial statements. Financial statements, such as balance sheets, income statements, and profit and loss accounts, allow businesses to track their finances and provide a comprehensive analysis of the financial status of the company.
Staffing agencies can generate financial statements in seconds using accounting software. Additional analysis, in the form of charts and graphs, for an in-depth look, can be useful, especially in developing business strategies based on the findings.
· Dealing with Taxation and Legal Compliance
Accounting software makes filing tax returns easy since all the necessary information is saved and available for taxation purposes. The software is designed to meet with the legal requirements that persists allowing for automatic compliance.
Top 5 Accounting Software Tools for Staffing Agencies
The 5 best accounting software tools that staffing agencies can tailor to their needs and use include:
1. Xero
Xero is an all-encompassing, could-based accounting software that has become very popular in the recent years. The software provides users the ability to extract data from hundreds of third-party applications. This ability to work well with other apps is a unique feature of the software.
Switching from a different accounting software to Xero is also very easy due to the latter’s ability to seamlessly integrate data from other software applications. Staffing agencies can collect data from various apps and consolidate it in Xero for accounting purposes.
Xero is customizable, so users can tailor the software to match their needs. It can be incorporated easily into an existing accounting system. Round-the-clock customer support and expedited troubleshooting mean that the software saves a lot of time and effort. The software is particularly useful for small-sized staffing agencies that may not hire a full-time accountant.
2. QuickBooks Desktop Enterprise
QuickBooks software is by far the most utilized accounting software. The ease of use and affordable cost make QuickBooks an excellent choice, especially for small to medium businesses. However, QuickBooks offers very basic accounting features, primarily bookkeeping.
To get additional features along with the ability to customize the software to your needs use QuickBooks Desktop Enterprise. Able to support a larger volume of users and data than QuickBooks Pro, QuickBooks Desktop Enterprise does everything from basic accounting to making detailed reports, inventory and payroll management, and time tracking.
The extra cost is made worth it when you consider all the features along with the fact that QuickBooks Desktop Enterprise provides great customer service. The software is user-friendly and can be used by accounting experts and amateurs alike.
3. Wave
Speaking of user-friendly, it is hard to beat Wave. The software is free of cost, though additional features are available with the paid version, making it very attractive for smaller staffing agencies. The software offers most of the features as provided by similar software programs, like generating financial statements, expense and payroll management, as well as invoicing.
Wave links directly to business accounts, and while the service is free, a percentage of each inbound payment transaction is automatically deducted by Wave. So you are paying per transaction. This is perfect for smaller staffing agencies who do not have a large clientele.
4. Zoho Books
Zoho Books is among the top cloud-based accounting software. The software is not free, but it offers plenty of features that justify the cost. With a free trial period of 14 days, you can find out for yourself whether Zoho Books is suitable for your business or not.
Excelling in providing mobility, Zoho can be accessed easily using any device making it highly convenient. An additional feature of a customer portal allows for optimal customer support. It is a well-rounded software solution to all your accounting needs.
5. Sage 50 Premium
Boasting high levels of security and an advanced cloud-based accounting application, Sage 50 Premium ensures that your data is completely secured. Equipped with all the accounting tools a staffing agency would require, the software automates important yet laborious tasks.
The software comes with a cost, however it is an investment that will surely improve productivity, reduce recurring costs, and improve accuracy of accounts.
Digitalization of the Accounting Sector
Digital technologies have taken over accounting as is the case with many other industries. Computers can do tedious and time-consuming calculations much faster and with greater accuracy than humans. Accounting software tools are superior to accountants in nearly every manner.
Since AI technologies are rapidly gaining momentum it would not be a mistake to assume that accountants, even in their role as financial advisors will become redundant. It is better that staffing agencies, as with other businesses, adopt these technologies as soon as possible.
Adopting software tools in daily accounting tasks will allow staffing agencies to remain in lockstep with the competition. The digitalization of the accounting sector is a reality that all companies, small or large, must recognize and act upon.
