The Best Accounting Software for Your Business: a Comprehensive Guide
Businesses have used spreadsheets and paper-based systems for too long. Although a good start, manual accounting methods are time-consuming and prone to errors. As a business scales, these methods can further impede agency growth. It is where accounting software comes in to help manage a business's finances and day-to-day operations.
Accounting software records and categorises a business's financial transactions. This information is used to generate reports which provide insights into a company's financial health. It can also help generate invoices, manage accounts receivable and payable, and track expenses.
This guide for advertising and media agency owners will go through the benefits of using accounting software and the features to look for when choosing one. We will also introduce you to the best accounting software for advertising and media agencies.
How Does Accounting Software Improve Productivity?
Bookkeeping and recordkeeping are age-old phenomena that have existed since the early days of trade and barter. However, with the advent of accounting software, agency owners can easily track their finances. It is because software automates many tasks that used to be done manually. It boosts productivity, improves the bottom line, and ensures compliance with tax laws.
Here are some ways in which accounting software can improve productivity in your agency:
Informed Decision-Making:
In the fast-paced advertising world, agency owners need to make split-second decisions that can make or break a campaign. For instance, you may need to decide whether to outsource a project or bring it in-house. With accounting software, you can easily track your agency's progress and make informed decisions based on data. It leads to improved financial productivity as you will save time and resources by making the right decisions.
Better Time Management:
Time is of the essence in the advertising world whether you're working on a tight deadline or trying to beat the competition, every second counts.
Accounting software can help agency owners manage their time better by automating tasks. It gives you more time to focus on core agency activities like client servicing and new business development.
Improved Cash Flow:
Poor cash flow is one of the main reasons why advertising agencies fail. According to statistics, 82% of agency failures are due to poor cash management. It is where accounting software can help. By tracking invoices and payments, you can ensure that your agency gets paid on time. It will improve your agency's cash flow and help you avoid financial difficulties.
Streamlined Functions and High Data Security:
When you have all your agency's financial data in one place, it is easier to track expenses and income. It also helps with tax preparation as you can easily generate the required reports. In addition, accounting software provides a high level of data security. The software ensures that your agency's financial information is safe and secure with features like end-to-end authentication and data encryption.
Resource: Pegasus Systems Software
Accessibility to Templates:
Most accounting software comes with various templates that agency owners can use. For instance, you can find invoices, client reports, and expense claims templates. You can easily customise these templates by adding your brand's logo and the information shown. It saves you time as you don't have to create these documents from scratch.
Cross-Platform Integration:
Have you ever had to switch between multiple software programs to get your work done? It can be frustrating and time-consuming. Accounting software is designed to be compatible with various other software programs. For instance, you can integrate it with CRM partner software or project management software. This way, you can access all your agency's data in one place.
Why Do Advertising Agencies Need Accounting Software?
Advertising agency accounting is unique and requires specialised software to manage finances. Agency owners must track various elements like media spending, creative costs, and client billings. In addition, they need to generate reports for clients and shareholders. Maintaining a high level of transparency and accountability is also necessary. All these factors make advertising agency accounting different from other types of businesses.
But could agency owners get by without accounting software? The short answer is no. Accounting software eases the burden of agency accounting and makes it more efficient. It is an essential tool for agency owners who want to take their business to the next level.
Factors to Consider When Choosing Accounting Software for Advertising and Media Industries
Accounting software is a vital tool for advertising and media agency owners. It helps them with various essential agency functions. However, with so many accounting software programs on the market, choosing the right one for your agency can be difficult.
Here are some factors to consider:
Cloud-Based Vs. Desktop Accounting Software:
You first need to decide whether you want cloud-based or desktop accounting software.
Source: Pegasus Systems
Cloud-based software is more convenient as it can be accessed from anywhere. All you need is an internet connection. It is also more affordable as you don't have to pay for installation and maintenance. Moreover, since all the information is stored online, you don't have to worry about data loss due to hard drive crashes, power outages, or other disasters.
Desktop accounting software, however, is installed on your agency's computers. It is more expensive as you have to constantly upgrade your agency's hardware to keep up with the software's requirements. In addition, you need to back up your agency's data to avoid losing it in case of a hardware failure.
The Stability of Accounting Software Company:
The next thing to consider is the stability of the software company. Since you will be entrusting your agency's financial information to the software, you must ensure that the company is stable and will be around for a long time. A good way to gauge a company's stability is to check how long they have been in business. Reading online reviews and talking to other agency owners who have used the software is also good. It will give you an insight into the company's customer service and whether they are responsive to their client's needs.
The Customer Support of Accounting Software Company:
Over the course of your agency's relationship with the software company, you will need customer support. You might face technical issues or have questions about the software's features. It is important to choose a company that has excellent customer support.
The company should offer:
Multiple channels of support like phone, email, and live chat
24/7 support to address any issues you might face
A team of knowledgeable and friendly customer support representatives
Customer support values. Source: Pegasus Systems
The Pricing:
Last but not least, you need to consider the software's pricing. The price will depend on the features you need and the number of users. Ensure you get a software program that offers a demo allowing you to feel the software before committing. We also recommend making a price comparison of the different software programs on the market. It would be best to account for hidden costs like installation, training, and customisation. It can impact your agency's bottom line.
Features Offered:
The highlight of an agency's accounting software should be its features. The software you choose must offer all the features you need to run your agency smoothly. Here are some features to look for:
Credit card payments
Invoice payment reminders
Multiple login options
Bank reconciliation
Bank transaction import
Ability to invoice customers
Focus on the agency's specific needs like time and billing, project and client management. These will determine the features you need.
The Type of Reports:
Reporting is an integral part of an agency's accounting process. The reports give you insights into your agency's financial health and performance. Make sure the software you choose can generate all the information you need. Here are some essential reports:
General ledger
Income statement
Balance sheet
Profit and loss statement
Aged receivables report
Aged payables report
Trial balance
Easy enter lines of the GL journal with our templates. Resource: Pegasus Systems Software
You might need other reports depending on your agency's needs. For example, if you do a lot of government contracting, you might need reports like the DCAA Compliance Report. Go through the software's reporting features and make sure it can generate all the reports you need.
The Accessibility of the Software:
Ease of use and accessibility are important factors to consider when choosing agency accounting software. The software should be accessible from anywhere, and anytime. It should also be easy to use so your team can quickly learn and use it. A good agency accounting software will have:
An intuitive interface
The ability to generate reports with a few clicks
A wide range of features and customisation options
The ability to scale as your agency grows
Safety Features:
The aspect of safety is essential for any agency accounting software. The software must have features like data encryption and password protection to keep your agency's financial information safe. In addition, accounting software that uses third parties for payment processing or APIs (Application Programming Interfaces) should have SSL (Secure Sockets Layer) certification. It will ensure that your agency's financial data is safe and secure. So, when you use Pegasus Edge, you can rest assured that your agency's accounting data is in good hands.
Pegasus Edge Accounting Software
Now that you know what to look for in agency accounting software, we want to introduce you to Pegasus Edge. Our agency management software offers all the features you need to run your agency smoothly.
Let us give you a quick overview of the benefits of using Pegasus Edge:
Accounts Payable:
Accounts payable are an agency's financial obligations that need to be paid within a certain period. The agency accounting software must-have features to manage and track accounts payable. Pegasus Edge offers accounts payable feature to track outstanding supplier payments and invoices. The feature allows you to:
Assign default tax codes to suppliers
Streamline your payroll reporting with Single Touch Payroll – only for Australian agencies.
Revalue currency values using the latest exchange rates
Import invoices from Excel to create supplier invoices
Accounts Receivable:
Accounts receivable is a critical part of any agency's accounting process. It allows you to track customer payments and invoices. With our accounts receivable feature, you can:
Get paid faster with online payments
Create an outstanding invoices report
Print and distribute invoices and statements in various formats
Control who can edit and access customer balance information
General Ledger:
Screenshot Expense Receipt App. Source: Pegasus Systems Software
General Ledger is a financial statement that shows an agency's overall financial health. It includes all the agency's assets, liabilities, and equity. Your accountants can use our General Ledger feature to:
Create General Ledger Journals
Use the bank reconciliation feature
Create accurate financial reports, including Profit & Loss, Balance Sheet Reporting, and Trial Balance
View the agency's financial health with the agency snapshot report
Expenses:
Do you want to track and manage your agency's expenses? With our agency accounting software, you can easily do that. Our expense management feature allows you to:
Claim your expenses through automation and payment process
Add multi-currency expense claim entries
Use our Expense Receipt App to upload receipts easily. Both for Android or iPhone, you can either use the camera to take a photo of your receipt or locate an existing image to upload
Receive instant email notifications
Why Do You Need to Use Pegasus Edge?
Pegasus Edge isn't your everyday agency accounting software. Instead, it's a customisable SaaS solution that offers real-time profitability and industry-experienced client service to help you succeed. Our Talent Tax Management, Built-In Report Writer, and Line-Level Data Migration are a few reasons why agency accounting software users recommend us.
Pegasus Edge is also known for its:
Accurate and real-time agency financial reporting
Proactive and insightful agency accounting advice
Efficient and knowledgeable customer service
Catering to the needs of small to medium-sized agencies
If you're looking for agency accounting software that'll ease your accounting process, look no further than Pegasus Edge. Request a demo today to see how our software can benefit your agency.
Contact us now to learn how we can help your agency grow!