Why An Accounting Software Is Needed For SMEs In The Philippines

Small and medium-sized enterprises(SMEs) are the engine of the economy in the Philippines. More than 99.6% of the registered businesses in the Philippines are SMEs. Therefore, the growth of small to medium enterprises is crucial to the growth of the country’s economy. However, many SMEs in the Philippines end up failing due to the lack of information to be able to predict and make the most appropriate decisions for the growth of these companies. For this reason, an accounting software in the Philipines is crucial for SMEs because it allows them to easily analyze their finances and help them make the right decisions.

Why use an accounting software and not just spreadsheets?

Although there is no regulation that forces SMEs to have accounting software to manage their accounting records, it is crucial that SMEs from the start conceive the idea of ​​having one. The benefit is that at the onset they know that they can reliably count on an accounting system that meets all their obligations and challenges. Most start-up companies choose to keep their records in excel and even in traditional notebooks. Although this method works, it is quite tedious because it requires manual effort. This results in inevitable human error when choosing to record information in this way. Additionally, after encoding the data, the financial statements must be manually prepared.

Accounting software helps to mitigate these errors and reduce the preparation time of the financial reports. The time saved can be used to better analyze the information so the managers can make duly informed decisions. This will then allow them to analyze different scenarios. It will then ensure the prosperity of businesses in spite of the different challenges that must face every day.

An accounting program serves multiple purposes.

Accounting software for SMEs is more than just a financial database. The information recorded in an accounting software such as Odoo ERP implemented by Vetter Systems in the Philippines serves different purposes. Such roles include regulatory, fiscal, control, among others. Although its main purpose is to manage information, it serves other roles. For example, it satisfies information requirements for regulatory, banking, shareholder, and other entities in general. Being able to have the data in one place, and in an automated way, ensures the ease of access and analysis of financial information. The ability to process as many reports as necessary facilitates decision-making and the way in which the information to be reported is analyzed. It will thus reduce reporting times, which is undoubtedly linked to the effectiveness of making on-time decisions.

The recent health crisis pushed the business environment in the Philippines to undergo some changes. It is important that the accounting software in the Philippines is up to date to face multiple information needs. Thinking that this would have to be done manually is quite a headache. That is why it gives you a sigh of relief knowing that accounting software acts as your company’s additional accountant.

The use of an accounting software is a step towards the modernization of SMEs.

SMEs comprise the huge bulk of businesses in the Philippines so their success is crucial to the country. Access to the technological trends ensures that these types of companies will not become obsolete in the face of the changes that the technological world has day by day. In times when the volumes of information grow and grow exponentially, it is important that companies have an accounting application that is capable of keeping all that mass of information and accurately process it. This should encourage companies to make decisions to modernize and not be left behind.

This modernization implies, on many occasions, a significant sum of money. However, it is crucial to evaluate the cost to benefit ratio. In relation to the ability to make decisions on time so as not to lose business and ensure its continuity, the investment is all worth it. Without accounting software, the cost of managing financial information increases as the company grows bigger, making the process inefficient. Inefficiencies translate into more expenses and, in some cases, losses for the business.

Accounting software in the Philippines allows information to be readily accessible but secured. The technologies and business dynamics of SMEs show that real-time access to information improves the ways in which managers monitor and make decisions.

In the past, managers kept the most important figures written down. For example in a notebook, journal, or paper when making a decision for a new business. However, in a world with changing technologies, it is necessary for entrepreneurs to have this information on their mobile devices. This ensures that SMEs have access to their financial information from their mobile device. Everyone with the same information can make a better decision.

Conclusion

An accounting application plays a very important role in SMEs. Such kind of program facilitates the access and management of financial information. It allows you to make the best business decision based on real-time information. It is therefore important not only to have accounting software that securely stores your financial records but also allows you to manage and access them anytime you want. 

Feel free to browse our website if you want to know more about IT applications for managing your business. You can also contact Vetter Systems if you have any questions about ERP implementation, accounting systems, or any IT needs for your business.