Small business accounting software is a powerful tool. Are you moving from a manual system or perhaps ready to start doing the bookkeeping yourself rather than outside? Perhaps you yourself are setting up an accounting business. In any of these cases, the software you choose can help your business grow. Here are 5 tips to choose wisely.
1. Do you know what you want?
Any accounting software will perform the basic general ledger accounting functions, accounts receivable, accounts payable, and cash functions. But you often need more, depending on your industry. So the best investment you can make for a collection software is to define what your needs are. Do you want payroll software or will you do payroll outside? Do you need job cost records? Also, what reports will help you? Take time to define your requirements.
2. The price is more than what it costs!
By that I mean that “free” software is not free. Learning software is often a greater cost in time and effort than the initial cost. Don’t forget training costs too if you have staff. Pick the wrong software and you might be going through all of that again soon, too. There are no “free” puppies and there is no “free” software!
3. Where is the help?
You’ll need some help learning how to use the software, and you’ll probably 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 inevitable problems.
4. Can you graduate?
As your business grows, you may need more accounting power. Pick a few brands of software and you can upgrade to more power without a problem. If you have to change software brands, you will have to pay the initial training costs again. Consider if you can upgrade.
5. Make the most of what you get!
The generation of tax forms and government documents is one of the goals of an accounting software package. That’s staying out of 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 profit 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. Also remember the training costs. Make a wise choice and you can save money and prepare for future growth.
