Financial accounting software has proved to be a blessing to many organizations. Not only does it make book keeping more efficient, it has added extra benefits to the organization such as generating projections for future expenditure or income, curbing embezzlement and generally making business management smoother.
Most companies prefer to have their accounting software specially custom made for them, while others are content with using some standard accounting packages, either way, they are enjoying the benefits of accounting software.
All the same, your business finances are one thing you cannot afford to mess with, so even while using accounting software you need to be cautious to avoid some major disasters. The following are key precautions you ought to take while using accounting software in your organization.
1. Test thoroughly
The good thing about standard software is that you will not need to do as much testing because there are many people using the software and as such, most bugs have been discovered and dealt with. However, you should still test it as your business processes might be a bit different from those of the other companies using the software.
If you are among the companies that prefer to have their own accounting module custom made for them however, then the onus is upon you to test the software thoroughly before you really begin to rely on it.
There are several things that you should watch out for, try out every possible scenario before you finally settle on a software. In addition, while many people for their flexibility and simplicity prefer spreadsheets, they are very prone to error and you should avoid them.
2. Security and confidentiality
Your accounting system needs to be secure. The software should be protected by firewalls and strong encryptions from external attacks, and internally it should be secure by use of passwords for every function.
Many employers fail to realize the importance of this but if you fail to secure your accounting software from within, employees could easily divert funds and defraud the company. There are many instances of employees invoicing a dubious expense to their account or a friend’s account. To avoid such instances, make sure that only people who are authorized can have access to the software.
Many things can go wrong with a computer system, from damage to the hardware due to a myriad of reasons to a virus attacking the software and wreaking havoc. You should make sure that your accounting software has provisions for backup in such instances.