Small business accounting software is a powerful tool. Are you moving from a manual system or maybe you are ready to start doing the accounting yourself instead of doing it outside? Perhaps you are creating an accounting business yourself. In either case, the software you choose can help your business grow. Here are 5 tips for choosing wisely.
1. Do you know what you want?
Any accounting software will perform the basic accounting functions of the general ledger, accounts receivable, accounts payable, and cash functions. But you often need more, depending on your industry. Therefore, the best investment you can make in picking software is to define what your needs are. Do you want payroll software or will payroll be done outside? Do you need labor cost records? Also, what reports will help you? Take time to define your requirements.
2. The price is more than it costs!
By that I mean that “free” software is not free. Learning software is often more expensive in time and effort than the initial cost. Don’t forget training costs too if you have staff. Pick the wrong software and you may be going through all of that again soon. There are no “free” puppies and there is no “free” software!
3. Where is the help?
You will need help learning the software, and you will likely need ongoing support as well. Now hopefully not much, but someone needs to fix any issues that arise. The only help is just a manual? Is it through a toll-free number? Maybe you can get local help? Local accounting firms are often experts in major software products. Plan ahead for unavoidable problems.
4. Can you graduate?
As your business grows, you may need more accounting power. Choose a few brands of software and you can upgrade to higher power without a problem. If you have to change the brand of software, you will be able to pay the initial training costs again. Consider if you can upgrade.
5. Make the most of what you get!
Generating tax forms and government documents is one of the goals of an accounting software package. That’s not getting in trouble. But accounting is much more powerful than just staying out of trouble. The right software can help you produce reports that help you make decisions. Better information can lead to more profits and better cost control.
Accounting software or bookkeeping software is a powerful tool for running a business. The cost of a software system is more than what you pay up front. Remember also the training costs. Make the right decision and you can save money and prepare for future growth.
