Published on December 6th, 2018 | by Sunit Nandi0
How to Choose the Right Accounting Software
Gone are the days of paper ledgers and hurried scribbles when it comes to business accounting. In today’s modern world, every successful company utilises the assistance of high-tech accounting software to keep their books in check. Accounting software makes it so incredibly easy for you to track your company’s financial health, as well as to monitor the inflow and outflow of money within your accounts.
Software also greatly reduces the chances of human error, which can sometime result in somewhat-catastrophic consequences that leave you pulling your hair out. Choosing the right accounting software for your accounts can be a challenging task. That’s why, in this article, we are here to share with you some invaluable tips you can equip yourself with in order to choose the right software for your business. Read on to find out more!
1. Consider Your Budget
Accounting software is available in a range of different prices. Depending on your needs, budget and constraints, you may want to sit down and decide just how much you are willing to spare on software. The more features the software provides, the higher the overall cost. Thankfully, most accounting software runs on the cloud as a service, meaning you can pay a monthly subscription for it instead of one lump sum upfront. Do keep in mind that if you are willing to pay for your software on an annual basis, you’ll be able to grab yourself a slight discount.
You can also choose from multiple plans, with basic packages available at around $40-$50 a month. Of course, this is the most basic of the basic, and costs will exponentially increase when features are added on. For those with a larger budget, we suggest utilising high end software as they usually include features such as advanced reporting, inventory tracking, payroll services, and so much more.
2. Other Important Factors
Aside from price, there are a number of factors you should consider before jumping into purchasing any particular software. One thing to look into is whether multiple people can access the software at once which, if so, will increase your efficiency and allow a few people to get things done at the same time; saving both your time and resources.
Another thing to look into is whether it runs on a cloud network or not. If so, it means your software can be accessed at any time and from any device of yours, whether that be a tablet or mobile phone. This enables you to keep things under control even when you are away from the business, and to keep an eye on what is happening whenever you feel the need to.
For those who own a few businesses, you will want to choose software that offers multiple business support. That way, you can streamline your entire accounting process and have everything run under one system, instead of dealing with multiple accounts for your various businesses.
3. Get Your Accountant’s Opinion
There is no better person to get help from in this instance than your accountant. He or she will have a wealth of information when it comes to accounting software, and keeping them in the loop and the decision making process will ensure that you are able to choose a software that they are either familiar with or can acclimate to with ease.
The last thing you want to do is purchase software that your accountant is not familiar with, as this will mean they will have to spend additional time learning how to use the software, and as we know, time is money!
4. Assess Your Needs
Lastly, you will have to thoroughly assess your needs before committing to any accounting software. Look into how your business operates, and assess whether you will need software designed to run huge businesses, medium ones, or smaller businesses. There is no point in purchasing software designed for multinational companies if you are just a small independent business owner, as you will only end up wasting money on things you do not require.
Depending on the industry you are in, you may also need specialised software that is crafted specially for your particular niche. Doing all this research prior to buying is of utmost importance, as it will save you spending money on the wrong type of software and affect how your revenue is managed in the long run.
We hope that this article has guided you in the direction of choosing the accounting software that most suits your business needs.