As a business owner, you must keep a watch on the flow of money to and from your company. With all the arduous tasks involved in managing your business, you need to have a system that allows you to execute your routine financial tasks smoothly.
These tasks may include tracking payments, monitoring expenses, sending invoices, and validating transactions. To lighten these workloads, you must get proper accounting software.
Most software solutions found online provide a diverse collection of functionalities. Most have several pricing options to select from and each variant offers unique benefits. However, it’s not easy to choose the best accounting software suitable for your business.
Thus, consider the following tips when choosing a reliable accounting software:
1. Know Your Budget Limits
When you are in the market for accounting software, your budget is an important consideration. Lots of accounting software can be found online, and these are all very affordable. Yet, when you focus on vertical software or business-specific solutions, the cost increases.
Much of the vertical accounting software systems are sold by value-added resellers (VAR). The software has a higher cost because its market is smaller than that of the standard accounting software systems. Besides that, you’ll be obliged to pay maintenance costs to receive upgrades from time to time.
These are the costs that you need to consider in your budget before buying accounting software.
2. Look For Business-specific Features
Narrow down business accounting software options by creating a list of the features you need to operate your business.
First, discuss with your team to make sure that you address all your business requirements. As you’ll find, there are features you need and some that you haven’t thought about before.
Bear in mind that once the operating system is up and running, it can be expensive if the staff using the software finds out that it doesn’t provide the tools needed.
Make sure that the accounting software you purchase has the following accounting roles:
- Budgeting
- Results tracking and analysis
- Inventory management
- Sales tracking
- Merchant account support
- Real-time and accurate reports on earnings
- Corporate tax reporting
- Customer interaction management
If your business operates in sectors with different accounting requirements, there are accounting software solutions available that satisfy those specific functionalities. Don’t hesitate to consider other people’s viewpoints on accounting tools to help steer your evaluation process.
3. The Best Business Accounting Software Is One You Know How To Use
When you’re a business owner, you have an in-depth knowledge of your business, not accounting. You are no bookkeeper. The truth of the matter is that the only experience you have is with cash management—not in-depth accounting.
Time and money spent studying accounting isn’t the way you want to plan the workweek. Yet, remember that you still need to know how to use the software.
Financial accounting with calculator and financial chart data on wooden table
You should understand that there are accounting software solutions designed for different levels of skills. Many software programs are designed for people who don’t know accounts and are straightforward. Others are better suited for finance professionals. Also, some accounting software packages offer free customer support and resources to help you.
Evaluate how much time you want to spend on learning the app. If you think learning the processes for the software is difficult, then you may end up wasting time using the program.
4. Be Aware Of The Usability Factors
To find the most suitable accounting software for your business, you need to judge how and where to apply it, and whether someone else will use it. Here are a few usability factors for consideration:
- Multi-use Access
Most bookkeeping and accounting software enable you to add other users to the system. When given the access, a user can view and make changes to your records.
You may want to give full access to your business partner and accountant while allowing limited access to your staff members. For example, your staff may be only allowed to use the software to record their work hours and invoice clients. This is possible with reliable and efficient accounting software.
Ideal accounting software services allow you to invite user accounts without any extra cost. Others provide unlimited accountant access but entail you to sign up for an increased pricing structure or pay more if you wish to add other people to the system.
- Multi-Business Support
If you operate more than one business, you may need a unified accounting system under one account. You should choose accounting software that serves several companies at no extra expense. Otherwise, the setting up of different accounts with each organization will cost you a lot of money.
- Mobile and Cloud-based Software
Many of the best accounting solutions are cloud-based, meaning you can view your reports anywhere, anytime, on any device with internet connectivity. Such a feature helps you manage your company even if you’re at home or on holiday.
Some also offer specialized mobile apps to help you perform essential functions on the go. Many provide different apps for employees who have limited functionality, such as time-tracking and posting expense receipts.
The capabilities of the mobile app vary, so choose a software with mobile functions that you need.
5. Ask For Your Accountant’s Advice
Each company is unique. Your accountants may prefer you to select a software that is consistent with the requirements of the business. The accountant will be in the best position to make an informed judgment to choose the right accounting software for your specific business needs.
Final Thoughts
Whatever business accounting system you decide to buy, understand that you’re not bound to keep using it if it no longer serves you well. As different accounting software solutions provide distinct benefits, the decision to choose one shouldn’t be taken in a hurry. Consider the tips mentioned above to choose the right accounting software for your business.