In order for companies to achieve their objectives and be financially efficient, they need to have tools that allow them to optimize the management of their assets. It is at this point that accounting packages stand out, which help to optimize the accounting processes and operations of companies. Next, we will learn how accounting packages help companies’ internal control and regulatory compliance.
Internal control of companies
Accounting packages contribute to the internal control of companies through the following factors:
Risk assessment and management
Accounting packages facilitate the organization’s risk assessment and management by providing “real-time” information on each financial transaction, helping companies to identify risks and potential vulnerabilities, in addition to establishing different controls associated with the approval, limits, and validation of transactions.
Accurate and reliable financial information
Accounting packages are financial tools that allow information to be displayed in a transparent and reliable manner since they have an efficient recording system and have the capacity to automate different accounting processes (data entry, reconciliation, and financial statements), which allows for more accurate, reliable and updated financial information.
Segregation of duties and access restriction
Accounting packages allow controlling or restricting access to certain users by segregating functions and management levels, which helps the company’s internal control, as well as avoiding the total control of financial transactions/operations by a single person, which helps to reduce fraudulent behavior in companies.
Regulatory compliance of companies
Accounting packages help with regulatory compliance for companies through the following factors:
Risk management
Accounting packages enable compliance with industry norms and standards. This is thanks to the transparency and automation of accounting processes, which helps to obtain accurate and reliable financial records, which is essential to detect problems in time, make the right decisions, comply with industry standards, and avoid possible fines or legal problems.
Local rules and regulations
Many accounting packages come preconfigured with certain local rules and regulations, which help the company’s accounting comply with the tax and financial laws of a given country or region. This includes automatic tax calculation, filing tax returns, and generating financial reports in specific formats, among others.
It is important to note that some providers often update their platforms to reflect certain changes in tax and accounting laws, thus ensuring that companies are always “up to date” with the latest regulatory requirements.
Accurate financial information for local authorities
Accounting packages provide accurate financial information that can be used by local authorities, which helps in the process of regulatory compliance and governmental oversight. Accounting packages automatically generate reports on the company’s financial data, which are related to financial statements, balance sheets, financial transactions, and cash flow, among others.
What do you think about this topic? Would you like to learn more about Pilsenga’s business accounting package?
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