What is Sage and why is it so important?
Accounting is the act of recording financial transactions related to a business. The accounting processes include summarizing, analyzing and reporting these transactions and interpreting economic data to regulators and tax collection entities. In order to accomplish such a task, an accounting system must be implemented. A system that serves the needs of users of accounting information. Once a system has been designed and implemented, reports can be issued, and therefore decisions based upon these reports can be made for various departments.
Def SAGE :
A Sage accounting system is a computerized package that has numerous facilities to process financial information. The software collects the information that the user provides, classifies it and then summarises the data in a convenient and accessible way that allows the user to view their financial information in a simple way.
Benefits of SAGE:
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.
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.
Accurate and Timely Preparation of Reports
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.
Payment of Taxes
Paying taxes is an important financial activity for both large and small companies. Company taxes have to be accurate and filed on time. Delays or entering wrong information when filing taxes will result in imposition of fines by the tax authority. Sage accounting has tax add-on’s to ensure accurate and timely filing of tax forms. Therefor implementing the taxation add-on will help in avoiding penalties and fines.
Business Planning Made Easy
Sage bookkeeping system allows easy preparation of profit and loss accounts and balance sheet. The profit and loss statement shows financial performance of a firm during a particular period, while the balance sheet shows financial state of the firm during a specific period. Both of these statements are used by the management to make strategic and accurate business plans to ensure that the business is on the right track financially speaking.
Full Payroll Services
Preparing payroll reports and distributing salaries to the employees is an important accounting activity that is made easy with Sage accounting software. Sage therefor simplifies the processing of payroll data and therefor ensures that the right amount is debited to the employees’ salary accounts.
In conclusion, Sage computerised accounting software is arguably the best when it comes to recording and organising financial information of both small and large Firms.