Accounting software has many modules. One of the most basic modules is Accounts Payable (AP), Accounts Receivable (AR). While businesses may be required to buy and sell products and services to different countries and in different currencies, it is important the accounting software owned already has the function available. Multi-Currency accounting Singapore is one of the essential modules for businesses.
Multi-Currency accounting software Singapore is a specific type of module that helps track the exchange rate throughout the day and records the specific rate when transactions take place when accounting period either ends or when the settlements are completed. Where Singapore is a small country, we rely greatly on imports and exports to increase the sales and revenue for a business.
Many local small medium enterprises these days does trading or even drop shipping where physical goods do not even reach the physical office location here in Singapore. In order to keep up with the fast-moving business module, and to established a strong international presence, the accounting software must be robust and ready to convert currencies easily.
By going global, it is inevitable local business may be invoiced in seller’s currency, like Ringgit, Thai baht, USD, Pounds or many different more, with Autocount 2.0 accounting software the pricing can be converted automatically using the defined exchange rate, without having to manually covert the amount. The converted amount in base currency can then be used in all other ledgers.
Regardless the size of the organization, multi-currency accounting software Singapore is an essential module needed for any organization to prompt conversion of currencies and facilitate the books.
Before accounting software was established, all foreign currency conversion were done manually by checking the latest exchange rate then converting and finally entering the numbers in the ledgers. A lot of time was wasted on checking then adopting the right formula to calculate the amount to pay seller. Should amount be issued wrongly, it would have been an un-recoupable loss. Hence with multi-currency accounting software Singapore, this unnecessary loss would have been greatly reduced or may even be eliminated. Accountants may also keep a primary set of books for the base currency for easy tracking and at the same time maintain the transactions and account balance in multiple currencies.
Some accounting software even allow user to define a default foreign currency to specific contact that was entered in the system. Hence the time to issue quote, receive invoice or bills from the contact will be always in the specific currency without having to manually set up each time. Manually adjustment is always a possible option should user wishes to change the default currency set up to another currency, for a single case.
Multi-currency accounting software Singapore helps automates many time- consuming and error-prone procedures. These take up a lot of day- to- day time while it is not difficult, it is just hectic and tedious to repeat the same process. Built in exchange rate calculator avoid the need to research, calculate and manually input values from quotation to purchase orders to transactions and accounting period end dates.
Human error can be further reduced should automation be done. There is no need further human intervention for data entry. Almost all accounting software with similar modules will allow user to select automated or manual exchanges rate tools, this flexibility provides a proper documentation and keeps track of all transaction. It may be further documented with an audit trail in the accounting software.
There are also reports which can be generated on foreign currency. User can see the accounts balances in the Profit and Loss (P&L) and the Balance sheet (BS), view any transactions, invoice issued or bill in the foreign currency. Similarly with the instant conversion reports, accounts can quickly see what is the loss or gain in foreign exchange and change the Gain or Loss Posting date.
Local Small Medium Enterprises in Singapore, often has a manpower crunch, the accounts department often needs to take on additional task to be the same person or the shared department who handles administrative or human resources matters. Hence it is important to have an accounting software which can help to simplify the manual task to make time and energy for other processes which requires more human intervention.