Why Do Accountants and Accounting Firms Need Accounting Software?

Accounting software allows accountants to maintain accounting records electronically instead of relying only on paper files and manual records. Manual record keeping takes time to maintain, retrieve and check, especially when an accounting firm manages many clients. Cloud accounting software can also allow authorised accountants to access client accounting records remotely through an internet connection. Accounting software can reduce manual calculation and data-entry errors, but accountants should still review the accounting records for accuracy.

What Accounting Software Does an Accounting Firm Need?

Accounting firms normally require more functions than a business managing only one company account. The software may need to support multiple companies, GST accounting, tax preparation, financial reporting, client access control and billing.

Professional accountants may manage accounts for many clients, so the software should keep each company’s accounting data separate and control which users can access it. An accounting firm may use its own accounting system or work directly in the accounting software used by each client. The suitable setup depends on the number of clients, accounting services provided and how clients need to access their financial information.

Accounting software for accounting firms should provide the financial and GST reports required for the firm’s client work. XBRL reporting may also be required depending on the client’s filing requirements. Cloud accounting software allows accounting firms and clients to access the same accounting data online where the software supports shared access. This can reduce the need to exchange accounting files manually between the accountant and client. Cloud accounting systems may also connect with bank feeds, invoicing and other business systems to reduce repeated data entry. Clients can also receive more up-to-date financial reports when the accounting records are maintained regularly.

We provide accounting software options for accounting firms and their clients based on the accounting, reporting and user requirements involved. The following are some of the functions to check when selecting accounting software for an accounting firm.

Managing Multiple Companies and Clients

If the accounting firm uses its own accounting software, check whether the system can manage multiple companies, separate client data and support multiple currencies where required.

Singapore GST Accounting and Reporting

For GST-registered clients, the accounting software should support the GST accounting, transaction coding and reporting required by the business. Check the Singapore GST functions available in each software before selecting a system for your accounting firm or clients.

Tax Preparation for Client Accounts

Tax preparation is an important part of the work carried out by many accountants and CPA firms. Software that supports the required tax schedules and accounting information can reduce manual preparation work.

Time Tracking and Client Billing

Time tracking allows an accounting firm to record the time spent on each client or job and use the information for billing. If your firm charges by time or project, check whether the software provides time tracking and client billing functions.

Financial Reports and XBRL Reporting

Financial reporting is one of the main functions required by professional accountants and accounting firms. The software should provide standard financial reports and allow accountants to produce the reports required by their clients. Where required, check whether the software can support unaudited financial statements and XBRL reporting for year-end work.

Client Management for Accounting Firms

Accounting firms may manage many client companies at the same time. The software should make it easy to organise client accounts, control user access, review outstanding work and retrieve each client’s accounting information.

User Access and Audit Trail

Where several accountants work on the same client account, the system should provide user access controls and an audit trail so the firm can review who entered or changed accounting information.

How Do You Choose Accounting Software for an Accounting Firm?

Compare the software based on the number of client companies, accounting functions, GST requirements, tax preparation, reporting, billing, user access and whether clients need online access to their accounts.

Cloud Accounting Software for Accountants

Cloud accounting software allows authorised accountants and clients to access accounting records online. Check the number of users, client access controls, data backup, integrations and support before selecting a cloud system.