Managing your company’s accounting might appear to be a daunting undertaking, considering all of the other vital things on your to-do list. Even small enterprises’ financial elements are undoubtedly difficult. However, there are solutions to streamline your duties and automate most of your accounting.
Accounting software may offer small businesses various effective ways of handling everyday financial activities and helpful reports to assist owners and management examine business performance.
However, without adequate consideration, company owners might make costly mistakes such as purchasing unreliable accounting software, struggling to make the program work, or incurring additional costs by changing to alternative software.
The market offers a wide range of accounting solutions. However, the true concern is which accounting software to choose since most of these options appear similar at first glance.
Consider the following aspects while choosing the best accounting software for your business.
1. User-Friendly Software
One of the most important factors to consider when purchasing an accounting system is the simplicity of use. The user-friendly program should provide a dashboard that displays charts that reflect your company’s financial status.
For example, seeing funds in and out of the firm during the previous six months, bills to be settled by the company, or invoices owing to the company and all user activity in one location is quite beneficial. In addition, the program should make accounting and bookkeeping easier.
User friendly software is important because it allows users to perform tasks easily. When users are able to use the software, they become more productive.
2. Software Features
When choosing software, look for one that meets your or your clients’ requirements. This may imply selecting one program over another depending on its features. Make a list of the features that an accounting software must have to help you find the right one.
Some features include:
- Vendor reports and payments
- Ability to track income and expenses
- Payments by credit card
- The ability to bill consumers
- Reconciliation of bank accounts
- Tracking of bank deposits and withdrawals
- Recurring bills
- Reminders for invoice payments
- Multiple login options
- Importing bank transactions
3. Your Financial Requirements
The correct software fits all your company requirements and gives you the best potential to expand. A program tailored to your needs examines how your firm functions and satisfies all of your accounting requirements.
To do so, you must first do research and determine which features are essential in your accounting software. You should also evaluate whether your bank endorses it, whether this should be established online or offline, or whether it provides a free trial.
You can reach out to Pherrus Financial, a firm that works with individuals and small businesses, offers tax advice, and develops simplified, successful financial plans that result in long-term financial independence.
4. Web-Based Application
The new breed of entrepreneurs prefers online accounting software. They like to access their company’s financial data on the move and send bills to their clients from anywhere. Web-based accounting software for small businesses enables them to collaborate with their employees or accountants to expedite the process.
In addition, they benefit from having access to the most recent financial data at all times and from any location.
Web-based applications are important because they allow users to interact with each other and share information easily. This allows for collaboration between different departments of an organization. Also, web-based applications are easier to use than desktop applications.
5. Data Security
Data security is an important consideration while selecting online accounting software. You should request certain information before choosing accounting software. Inquire about how the organization stores application data and whether or not software services use HTTPS connections.
The HTTPS protocol makes sure that data passed from your computer through the software company’s servers have been encrypted and hence inaccessible to hackers.
6. Integration With Other Business Software
You should be cautious when considering upgrading or replacing your accounting software. You must choose software that integrates effortlessly with other applications in your company. Accounting is an essential aspect of every organization; thus, you must select it wisely so that it does not affect your business.
If you want your firm to expand, you’ll require accounting software that can adapt to the growth. The number of transactions will rise as the business grows. It will also necessitate the deployment of multi-user accounting software. Higher transaction volumes could also justify the usage of additional software capability.
As a result, it’s wise to look into what upgrades you’ll need to handle your company’s future growth. You should also look at how much such upgrades will cost.
8. Reliable Customer Support System
Despite how technologically savvy someone is, learning new software can be difficult. With just about any new service and product, particularly one that has the potential to influence your organization dramatically, it’s critical to know if customer support is conveniently available.
For example, you can have a query about a certain feature, be having trouble integrating other applications or your bank accounts, or wish to look for help. Nonetheless, you would like to know early enough that any assistance you may want is available.
9. Compatibility With Financial Institutions
Good accounting software will provide you with an accounting package that can be integrated with your bank. Such integration would make it easy to carry out transactions with your bank, and you’ll be able to have reconciliation with your bank automatically.
As an outcome, you’ll save time and finish the transaction faster. Then eventually, the accounting software will provide you with a solution that eliminates any errors in your business and attract clients.
10. Multi-Currency Functionality
If you frequently post most transactions in different currencies, you’ll require multi-currency support. This enables you to record transactions in your local and foreign currency. In addition, you will need to be capable of doing currency revaluations if you have liabilities and assets in foreign currencies.
Unfortunately, standard small business accounting systems frequently lack foreign currency capabilities. So, if you utilize various currencies, be sure the software you choose includes multi-currency capabilities.
11. Industry-Specific Functionality
Specific rules apply to certain types of enterprises. For example, a website developer may require project costs to track profitability. Accounting software that seamlessly integrates with eCommerce software may be necessary for an eCommerce business. Don’t limit your search to general accounting software. It’s worth looking for industry-specific software.
The cost of accounting software is an important consideration when selecting the best solution for your company. Many businesses provide a desktop-based solution for a one-time price, while others offer SaaS solutions for a monthly subscription.
Monthly plans typically begin at $10 and could go upward to $100 or even more (based on the number of users and the features). If you’re ready to pay an annual fee, you might be able to obtain a significant discount.
You may have to spend additional money if you want more sophisticated services like analysis and reports, automated payment reminders, sales tracking, project monitoring, inventory management, and more. Some firms, however, provide a free version of their program, although the functions are relatively limited (useful for only small businesses).
13. Test The Accounting Software Before Purchasing
The following list consists of accounting software that you should test before purchasing:
- Intuit Quickbooks Online
- OneAccounting Software
- Sage 50
Intuit Quickbooks, Xero, and Sage 50 are well-known applications. Explore the software websites, download the trial versions, and examine how the tools perform in real-world situations. Some versions have fewer features than the premium versions. Examine their premium features to determine if they would adequately align with your accounting demands.
Streamlining your accounting activities is a huge step toward better managing your business finances, making more informed decisions, and removing the anxiety from tax season.
Once you’ve discovered price information for the software—whether it’s a flat cost, a tiered pricing plan, or a customized quote—compare your alternatives to determine where you’ll get much more value for money. Consider all of the factors mentioned above concerning the pricing.