Choosing the best accounting software for trading business could be a daunting job unless or until you will have an idea of its extra requirements for cash trading. While accounting software is essential for each and every business to optimize diverse aspects of accounts and overall financial health, the needs of a trading business are quite different from the others. Accounting software for trading businesses requires extra attention to cash trading.
In a trading business setting, unlike other types of businesses the entire accounting system mostly goes through a cash system in which any form of transactions including expenses and incomes are only recognized and recorded when the outflows and inflows of cash subsist in reality.
Keep reading to learn what accounting software would be the best for your trading business. But before we get into the best accounting software for trading business, it’s worth knowing the basics of both trading business as well as accounting software a little bit more. So, let’s get started.
Table of contents
- Understanding trading business
- What is accounting software?
- Features required for accounting software used in trading business
- Best accounting software for trading business
- Final words
Understanding trading business
Trading business is a type of business where tangible goods or merchandise are sold, which is why it is also known as merchandising business. They sell a variety of physical products ranging from educational supplies to medical equipment to daily inventory. A trading business can be either a retailer that sells goods to the general public directly or a wholesaler that sells merchandise to other businesses.
Let’s take a look at some of the common features of a trading business:
- A trading business buys, stocks, and sells goods and manages an inventory
- It may have a warehouse or stockroom where excess inventory is stored as a back stock
- It earns profits or revenues from the goods they sell
- It receives payments from consumers for goods purchased
- It May have a return or exchange policy to resolve disputes if any
- It maintains its accounting for sales through a point-of-sale system or cash register
What is accounting software?
Accounting software is a software application that keeps records and reports of all financial tractions a business goes through. Key modules of accounting software may include bookkeeping, billing, accounts payable and receivable, timesheets, payroll, as well as others. Accounting software can be of two types – either system-based or cloud-based. Though system-based accounting software works well, cloud-based ones are more efficient in terms of stability and usability.
Features required for accounting software used in trading business
There are many different aspects of accounting software used in the trading business and they may widely vary from business to business depending on their size, category, goals, and specific business needs. For choosing the best accounting software for trading businesses, it’s important to learn which features to look for and how to use them.
Here are some of the most common features to look for in accounting software for trading business:
- Dashboard
- Automatic payment reminders
- Online invoicing
- Recurrent invoicing
- Inventory management
- Tracking of billable hours
- Project-based billing
- Integrations with other systems
- Mobile apps
- Bank reconciliation
- Financial reporting
- Support for multiple projects
These are some common features of accounting software used in trading organizations but are not limited to. Trading businesses may require various other features as well depending on their specific business requirements.
Best accounting software for trading business
Although there are tons of accounting software available in the market you can choose from, it’s important to look for the compatibility between your business and the features they are offering to determine which one would be the best for you.
Every accounting software has its unique advantages in a particular area. For example, some are best for online merchants and some are best for invoicing and automatic accounts payable. Therefore, it’s important to thoroughly check the features to figure out which accounting software would be the best fit for your trading business.
In our recommendation, we always prefer ERP software solution for trading business because it not only helps you with just accounting but also various other aspects of your trading business including banking, taxation, inventory management, purchase management, sales management, and many more.
SAP ERP for trading business is one of the most trusted and popular ERP solutions globally praised and accepted by different sizes of trading organizations. At Fairfax ERP, as a leading authorized SAP Business One partner in Kolkata, we provide best-in-class accounting and invoicing software for trading businesses at a very affordable and transparent price.
FAQ Related Accounting Software
SAP Business One, Accounting software which provides you with a way of managing your business accounts including journal entries, accounts receivable and accounts payable, as well as accurately tracking cash flow, fixed assets and monitoring performance against budgets.
SAP Business one among the most potential tools to manage your financial activities very efficiently and effectively with minimum effort. It delivers not only the necessary instruments also but provides you with detailed analytics of financial health of your organization. Also note that SAP Business One incorporates Generally Accepted Accounting Principles to deliver most powerful financial mechanism.
Another benefit of SAP Business One financial accounting is automation. The system is built on Real time response and updates, drilled down functionality, data integrity, advance expense management, flexible reconciliation, audit trail and many more.
Final words
If you are wondering about the best accounting software for trading business, it truly depends on the needs and size of the trading business. It’s always the best idea to choose an ERP software for trading business because it helps ease diverse business processes along with all accounting aspects including sales management, purchase management, and inventory management.
Fairfax ERP is an authorized SAP Business One partner in Kolkata, India that offers high-quality customized SAP ERP software solutions for various verticals such as manufacturing, retail, dairy, FMCG, and transportation along with accounting software for trading business.
For more inquiries, contact Fairfax ERP using the contact details provided on the contact us page.
