Accounting software provides foundation for business transformation

By Jeff Lewis, Director Sage Pastel

Businesses are now, more than ever being exposed to the international playing field, facing added pressure to conform to new global reporting standards. Companies also need to meet the demands of good corporate governance, transparency and employment equity, all of which place greater demands on the accounting system to ensure financial and business information is always available, accurate and consistent.

The introduction of International Financial Reporting Standards (IFRS), for example, will affect how many businesses report on their information. The impact of IFRS, as just one component of globalisation, can however be managed if software solutions are in place that ensure tight integration between the accounting system and reporting tools.

Business Intelligence (BI) tools that slot into the core accounting application can provide instant access to business and operational information. 

Companies have to think more strategically and creatively to remain competitive in a global market place. Sage Pastel developed its Business Intelligence Centre (BIC) add-on module to help SMEs meet their requirement for flexible reporting capabilities and to ensure that information reported on always is up to date and synchronised, in real time, with information in the accounting system.

Through add-on capabilities such as the Sage Pastel BIC, organisations have the ability to, for example, act and report on more accurate information to ensure that legislative requirements are met, particularly as regulations around corporate governance have become more stringent. Many functions of reporting can also be automated to, for instance, distribute reports via e-mail to board members and auditors at the push of a button.

One of the biggest challenges facing management today, however, is the further integration of their accounting data and the remainder of information within the business, such as information relating to customers and suppliers.

The electronic accounting software system has become a central repository of information and is thus essential to decision-making within an organisation. By adding BI capabilities onto this system, companies can also start to bridge the gap between management and the accounts department, and gain greater insight into the business.

Accountants will continue to play a vital role in taking their organisations or their customers to this next level of accounting and business sophistication. As they have traditionally made decisions around the software that automates the accounting and payroll functions, they are also ideally positioned to fulfil an advisory role around the added business management functionality that can be incorporated into these systems.

In today’s competitive business environment implementing a solution that allows you to quickly view information regarding any aspect of your business is crucial to your differentiation in the market place, customer service excellence and financial health.