Bookkeeping is an important aspect for any business both big and small. Developing skills in bookkeeping enhances job prospects for individuals. Bookkeeping involves systematic and comprehensive recording of a company’s financial transactions. The process involves classifying, analysing, and summarising financial data over a particular period. The management of the company uses this financial information to know about the financial position of the company and chart future direction of the company.

Sage accounting software has been an industry standard that makes bookkeeping simple and easy. The accounting software is a subscription based product released by a U.K. based multinational company named Sage Group. The accounting software was previously known as Peachtree Accounting in the U.S. and Simply Accounting in Canada. However, after the 2013 edition, the software is now known as Sage 50.

The computerised accounting software makes bookkeeping easy for individuals who have not completed formal accounting education in a university or college. The software boasts powerful features that streamline accounting function for the company for maximum efficiency and productivity. Top benefits of developing bookkeeping skills using Sage accounting software are detailed below.

1. Efficient Bookkeeping and Financial Management

Sage accounting software simplifies accounting function that results in efficient bookkeeping and financial analysis. The computerised accounting software streamlines accounting function. Using the accounting software invoices can be prepared on time, account receivables can be analysed, cash flow position can be determined and suppliers can be paid without delay.

2. Accurate and Timely Preparation of Reports

Another great benefit of Sage accounting software is that it allows accurate and timely preparation of financial reports. Financial reporting is an important aspect of bookkeeping. And this task can easily be performed with Sage accounting software. The accounting software allows easy preparation of graphs, charts, and other reports that give a snapshot of the company’s financial position during a particular duration.

3. Payment of Taxes

Paying taxes is an important accounting activity for both large and small firms. Company taxes have to be accurately filed and on time. Delays or entering wrong information when filing taxes results in imposition of fines by the tax authority. Sage accounting tax add-on ensures accurate, timely filing of tax forms. Using the taxation add-on helps in avoiding penalties and fines that occur as a result of wrong or delayed filing of tax forms.

4. Business Planning Made Easy

Sage bookkeeping software allows easy preparation of profit and loss accounts and balance sheet. The profit and loss account statement shows financial performance of a company during a particular period, while the balance sheet shows financial position (i.e. assets, liabilities, and invested capital etc.) of the company during a specific period. Both these statements are used by the management to make strategic business plans and ensure that the business in on the right track financially.

5. Full Payroll Services

Preparing payroll reports and distributing salaries to the employees is an important accounting function that is made easy with Sage accounting software. The computerised accounting software simplifies processing of payroll data and ensures that the right amount is debited to employees’ salary accounts.

In conclusion, Sage computerised accounting software is arguably the best when it comes to recording and organising financial information of the company. International Association of Bookkeepers (IAB) qualifications will give you a solid grounding in bookkeeping using Sage accounting software. After completing the course, you can become a professional bookkeeper and gain mastery over Sage accounting software thereby greatly improving your employability prospects.

References

1. Weygandt, Kieso, Kimmel (2003). Financial Accounting. Susan Elbe. p. 6. ISBN 0-471-07241-9.
2. Accounting. Retrieved on 12 December 2015, from http://www.investopedia.com/terms/a/accounting.asp
3. Sage 50 retrieved 12 August, 2015 from http://www.sage.co.uk/software-and-services/accounting-and-finance/sage-50-accounts
4. Fineberg, Seth (17 May 2012). “Peachtree Now Officially Sage 50″. Accounting Today. Retrieved 12 August, 2015 from http://www.accountingtoday.com/news/peachtree-sage-summit-business-intelligence-small-62668-1.html

By an iQualify UK staff writer.