What is Integrated Accounting Software?

What is Integrated Accounting Software?

For years, business software tended to be tailored to a single function – one tool, one job – but the current generation of cloud tools has changed that. Integrated accounting software combines multiple functions related to accounting and financial management into a single platform, increasing convenience and control for business owners. This can include features such as invoicing, payment processing, expense tracking, and financial reporting, connected and updated in real time. 

For businesses owners and teams juggling a long to-do list, combining these functions in a single,  integrated system helps teams streamline and automate these processes. Instead of manually, moving data between systems, firms can build a connected data journey that makes it easier and more efficient to manage finances and track sales. 

How does integrated accounting software work?

Integrated accounting software works by bringing together various financial management functions into a single platform. Available via web or mobile app rather than a desktop solution, this makes it easy for businesses to access their financial data and insights from anywhere.

The best integrated accounting software offers features that not only perform their function, but add extra value when used together. By connecting the ledger, expense management and reconciliation functions, for example, businesses can automate the majority of the accounts payable workflow to keep on top of outstanding costs in real time. 

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One of the most valuable features of modern integrated accounting software is its ability to connect with third-party applications and platforms via API. For example, a business might connect their accounting software with an online payments platform, allowing them to process payments and track financial data in real-time.

Benefits of integrated accounting software

Integrated accounting software offers a range of benefits for business owners that can help organisations perform better and more efficiently: 

• Improved accuracy: Integrated accounting software makes it simpler to ensure that financial data is accurate and up-to-date. By automating tasks such as invoicing and expense tracking, businesses can reduce the risk of human error and inconsistencies in their financial records while removing manual data entry.
  
  
• Data security: Integrated accounting systems often includes robust security measures to protect sensitive financial information from unauthorised internal or external access, while also reducing the risk of data transfer via email or spreadsheet.
  
  
• Flexible functionality: The range of accounting software integrations available allows businesses to add new functionality via third-party applications and platforms to suit their needs. This can include payment processes, e-commerce connectivity or marketing tracking.
  
  
• Real-time reporting: Working with a single connected data journey provides businesses with real-time financial data and insights, allowing them to make faster, more informed decisions about their operations and growth based on the most accurate information.
  
  
• Time-savings: By automating tasks such as invoicing and expense tracking, integrated accounting software can help businesses save time and resources, as well as time wasted on managing multiple systems. 

The difference between an integrated and non-integrated accounting system

An integrated accounting system brings multiple financial functions into a single platform for a connected user experience, while a non-integrated accounting system is a standalone software that is designed to handle a specific aspect of financial management.

Integrated accounting systems offer improved convenience for businesses looking to manage their finances from a single platform, however, for larger enterprises, a standalone financial platform may offer the necessary depth of functionality to report on a larger scale. These platforms may require manual data transfer or specific API connections to send information to other dependent systems. 

Best integrated accounting software

Many of the most popular accounting software platforms today are integrated accounting systems. These are often built on a foundation of open API connectivity, enabling them to share information securely with a wide range of tools that can supercharge business performance. 

The best integrated accounting software includes packages such as:

• Xero
• QuickBooks Online
• FreeAgent
• Sage
• Freshbooks
• Clearbooks

Accounting software integrations

For businesses looking to get more value from their accounting software, accounting software integrations can provide additional functionality, flexibility, visibility and control based on the type of company.

• Payments, including POS, online sales and buy-now-pay-later tools.
• Business intelligence and reporting tools to understand performance in depth
• Stock control and ERP integrations to track inventory and orders
• Credit and funding to use existing records to raise additional capital

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