When you think about the benefits of POS software, it’s likely that inventory control and simplified customer transactions come to mind first. Most business owners aren’t even aware that POS software programs can also simplify accounting and bookkeeping for small businesses.
Improved tracking of sales and inventory information can improve the accuracy and efficiency of accounting and bookkeeping tasks for small businesses, particularly when POS software and accounting software are integrated. Quality POS Software will offer integrated, real-time information sharing, so that changes made (e.g. sales completed, inventory reduced, employee hours worked) are reflected consistently in your online accounting ledgers. Some POS software programs even save information to a secure cloud, allowing information to be shared between the system and accounting software on two different computers or even in two different locations. Integrating accounting software and POS software can lead to improved tracking of many types of financial information, including:
1. Vendor and Customer Information
Once you’ve integrated your POS and accounting software, you’ll never have to make redundant entries to vendor and customer information again. When your sales team makes changes to customer contact information like adding an address or changing a phone number, your accounting software will instantly show the changes. Account balances will be updated in real-time, eliminating the risk of billing errors as well. Similarly, vendor contact information and accounts will be updated instantaneously, so you’ll never have to worry about a payment being short or failing to reach a payee. You’ll also have a much easier time tracking the information of vendors who are also customers, as account information will be automatically reconciled.
2. Sales Tax Collection
Every time that you complete a sale with your POS software program, payments are recorded in detail by the software. Sales tax is automatically separated from the cost of goods, and if you collected more than one type of tax during a transaction, the amounts will be credited correctly. All of the sales tax information will be seamlessly shared with your accounting software, making it easier than ever to issue sales tax payments. You’ll never have to worry about data entry errors and the costly fines that they can cost you.
POS software can greatly simplify inventory control, and when you integrate the program with your accounting software, you can reap many benefits. Whenever you complete a purchase order, your inventory will be automatically updated to reflect which goods are on their way and when they should arrive. You’ll enjoy much more accurate tracking of the cost of goods sold and the income generated from each item in your inventory. With real-time information sharing, you’ll be able to quickly determine the value of your current inventory in a matter of seconds.
4. General Ledger Account Balances
Imagine how much time you could save if you didn’t have to manually input general ledger account entries on a daily basis. Integrating your POS software and accounting program can make it possible. The latest POS software programs can help you instantly update Accounts Receivable, Inventory, Accounts Payable and Customer Deposits in real time. You’ll be able to check the balance of any general ledger account with just a quick glance and can be confident of its accuracy. By eliminating the risk of data entry errors, you can be certain that reports like your balance sheet and income statement are true reflections of your current financials.
5. Sales Reporting Data
Ensuring that sales are accurately recording in your accounting software is an effortless task once POS software is fully integrated. Every time a transaction is made, the accounting software will receive the information and records will be automatically updated. The best part about integrating POS and accounting software is that the setup process is often very easy. Businesses can typically complete the process themselves without experiencing downtime. Once integration is complete, the benefits of improved tracking will become immediately apparent for businesses.