Accounting Software for Distributors
Table of Contents
Stock turnover in distributors is very fast. If a distributor sells to 3,000 stores, in a day there can be 100 to 200 transactions processed. Therefore, to speed up the process of financial recording, all distribution transactions should be recorded automatically by accounting software.
Accounting for Distributors
All incoming and outgoing transactions must be recorded from the process of purchasing goods, entering the warehouse, until the goods are delivered and paid for by the customer. The purpose of financial statements is to find out:
- Company’s financial position
- Financial performance
- Amount of assets collected
- Income statement
- Balance report
- Cash flow statement
All of these reports show the results of management’s accountability in utilizing the resources.
In addition to making it easier to check the company’s condition during that period, financial statements also become the basis for predicting the company’s financial health and performance in the future. This is indispensable for applying working capital loans to banks, investors, creditors, or other financial institutions, as well as for tax reporting.
Constraints in Manual Financial Recording
- Not integrated so you have to manually check for payment/purchase status to make journal entries.
- Most accountants end up working overtime during the closing process.
- To check profit, cash position, and other important metrics, management must wait for the closing process, because the information is not updated instantly.
- The possibility of errors and duplication in recording transactions and collecting financial data.
- Unable to monitor the PIC who is responsible for certain transactions, thus making it difficult to find the basis of reference for financial records, resulting in loss of audit trail and asset misappropriations.
Benefits of Accounting Automation
Every transaction is inputted by the system user, the report results are updated instantly and accurately. Hence, accountants can speed up the bookkeeping process and companies can make decisions based on more accurate financial statement predictions.
Accounting Module for Distributors
The Accounting module in the Advotics Distribution Management System can help distributors to be more efficient in recording transactions and receiving payments easily and quickly. The bookkeeping feature is done automatically and can be accessed in real-time.