How to Choose the Right Accounting Software for Your Small Business?

In the present age, accounting software has come as a helping hand for professionals in the bookkeeping world. It has assisted companies in tracking expenses, calculating profits, and forecasting sales. Regardless of their size, businesses can benefit from accounting software and streamline their process of managing the books. It has gradually reduced the use of traditional ledger paper and hence, improved the accuracy of the process.

There are several accounting software solutions in the market to enhance your experience. Each software is different in a way it provides specific services. Therefore, you must take out some time to decide which accounting software is best for your business.

Here are a few questions you need to ask yourself before investing in particular software.

1.      What Are Your Needs?

It is essential to start finding the right accounting software only after analyzing your needs. Depending upon the size and type of industry, decide how the software will be used.

Do you prefer the software to be online, offline, or hosted? Do you need multi-user access? What is the level of the accounting skills required to use the software?

Filter out the factors as per your current usability and future adaptability of the same. Keeping these points in mind can provide a clear scenario of what you want out of the accounting software.

2.      What Is The Feature Set Required?

Consider the functionalities offered by the accounting software, and depending upon your requirement, look for the desired accounting software. Here is a list of some features you must check out after assessing your needs:

  • Calculating payroll, tracking invoices, and manage financial data
  • Automation of the simple tasks
  • Tax preparation
  • Multi-user access
  • Mobility of the software
  • Producing customized reports using dashboard

These time-saving features help to accomplish accounting tasks with ease. You can check the features of the software on its website for better reference.

3.      Is The Software Easy to Integrate?

Accounting software might not be able to meet everything on your wishlist. Therefore, opt for the software that is flexible and can seamlessly integrate with different business software like tax software, CRM management, and other useful third-party add-ons.

For example, the popular accounting software QuickBooks integrates with tax software such as Drake, which imports the accounting data and reduces manual data entry work.

It further adds value to your business services and gets the most out of the accounting software.

4.      Is The Team Onboard With Your Decision?

Your accountant might be one of the best individuals to consult while selecting any accounting software. He/ She knows your businessโ€™ financial status inside out and would be able to offer the right advice on the matter.

Also, talk to your IT team to understand the hardware situation. Keep in mind the requirements of your team before implementing any software in the system.

5.      How Easy Is It To Use?

The complexity of using an application is a significant factor that distinguishes one accounting software from another. Many small businesses donโ€™t have a dedicated accountant. Therefore, it is essential that the software should be easy to learn. Moreover, navigation and user-interface should be simple.

Investing your money on training of the accounting software might not be the best idea for your business. Ensure that the accounting application is easy to understand for your team, which in turn, will improve productivity and help them focus on more crucial tasks.

6.      Whatโ€™s Your Budget?

Always calculate the total cost of implementing the software before buying it. The accounting software solutions available in the market have a wide range of pricing plans depending upon the functionality. Therefore, consider options within your budget that address your needs.

Many software providers provide customized pricing plans or might charge extra for additional services. Take note of the hidden costs associated with the software.

The software package opted should fulfill all the requirements of a business. Furthermore, the return on investment should be taken care of while purchasing the accounting software.

7.      What Are Your Options?

Today, there are a number of accounting software in the market to ease the financial work. It is better to browse the different options available for your business. Compare the software and shortlist to find the best fit for company operations.

Some of the most popular accounting software in the market are:

  • Intuit QuickBooks
  • Xero
  • Sage
  • Wave
  • Kashoo
  • FreshBooks
  • Zoho Books

Each accounting software is different from the other. It is better to get an overview of the available options, which, in turn, helps you to make the right choice for the business.

8.      Is Your Data Secure?

Accounting reports are of the utmost importance, and you must get insights on how a particular service provider stores the application data. If you opt for online software or hosting of accounting software, check what security measures the vendor is taking to safeguard the data.

Always ensure backup options for the data in case of any accidental loss. Application providers must use the latest technology to protect data from malicious attacks.

9.      What Do The Customers Say About The Software?

Customer reviews give a better perception of the accounting software from people who are using the same. The feedbacks help understand the product better and clear the concerns you have in your mind for the software.

Case studies are also an important component that helps to evaluate the right accounting software better. If you are unable to find helpful reviews for any particular software, ask the provider to help you talk to any of their existing customers.

10. Can You Take A Trial?

Always check if you can avail free trial of the software before buying it. After narrowing down your choices, go through its features during the trial period. Use it extensively to find the perfect software to meet company expectations.

Signing up for free trials and experiencing their services can help build confidence with the product. It further ensures long-term commitment to the product.

Wrapping Up

The points mentioned above will help you filter out the best accounting software as per your needs. You must not hurry and take some time to pick the right accounting software for the constant growth of your business.

Bhavleen Kaur is a writer at Ace Cloud Hosting- a leading QuickBooks cloud hosting provider. She specializes in writing about accounting, cloud technology, tax software, and likes to know about upcoming technology and trends. You can follow her on Twitter and LinkedIn.

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