An integrated accounting system is a software application that standardizes your procedures for recording transactions and disseminating financial information. It interconnects the reporting activities of functional areas of your business like point of sale, stores, back office and front office. This streamlines the information input and output of your management accounting and financial reporting functions. The adoption of an integrated financial system enhances speed, accuracy and efficiency of processing financial information.
Real-Time Data Processing
An integrated accounting financial system enables you to relay real-time information about your business transactions. Thus if you operate a small hotel business, you can remotely track your number of vacant rooms, occupied rooms and new reservations. You can also track your gift shop sales and latest inventory records and access real-time reports of the day’s operations to analyze the impact of transactions on the general ledger.
An integrated accounting system serves as a one-stop shop for all of your accounting needs. When using an integrated accounting system, you do not need to maintain separate accounting procedures for preparing financial, management and cash-flow reports.
Automated data processing simplifies your accounts and bookkeeping by using an integrated accounting system. This eliminates tedious and complicated reconciliation activities that you have to perform while using non-integrated accounting systems.
Choice Vs. Necessity
Adoption of an integrated financial system is more of a necessity than a choice. This is because the complexities in modern business world demand the use of efficient systems to increase your performance. But for this you need a user-friendly, affordable and flexible integrated accounting system which can avoid complications.