No matter how big your business is, having accounting software is essential for tracking your revenue, invoicing customers, reconciling transactions, etc. Using accounting software can reduce human error significantly. You can also generate reports by analyzing your business performance by setting different KPIs.
Although choosing the right accounting software for your business is not an easy job. There is numerous accounting software out there in the market. Each of it have different functionalities, features and comes at different prices. You should look into what your business requires and sort out the software that fits your business. Some of the major accounting software includes QuickBooks, Xero, FreshBooks, Zoho Books, Sage, Wave, etc.
Here are a few key points that can help you for choosing the right accounting software for your business.
- Identify your business needs
Why you need accounting software is the first question you need to ask yourself before looking into your options. Be clear about the functions that you’re looking for whether it is raising the invoice, bookkeeping, or project management, etc. You can list all your needs and go for software that supports all of it. If you’re looking for better accessibility, you can go with a cloud-based system or with desktop servers if security is your first priority.
- Bank Integration
Most accounting software in the market will let you integrate your bank account with the software. This will help you download the bank statement directly and make the reconciliation process much easier. You should make sure the software that you’re choosing can be integrated with your bank’s software.
In most countries, it is necessary to maintain your financial records for 6 years to meet compliance. Make sure you use the software that allows you backup and maintain up-to-date financial information to be compliant. Also, the software that provides an audit trail will help you track all the transactions during a period. If you find any errors, you can delete and update the correct entry as needed.
Price is a crucial factor when choosing accounting software. You should consider your budget and look for a package that suits the best for your accounting needs. Research the costs of various accounting software and what you get for it. Also, look for additional charges like set-up fees, add-ons, cost-per-user, etc
Using an accounting software that can be integrated with various third-party apps you already work on. All the changes should be automatically updated to avoid repeated data entry. For example, you can integrate your CRM software with your accounting to link all your customer’s information. Any changes in the CRM will be reflected in your accounting software.
Go with software that makes your tasks much simpler than making them even more complicated than it is. Although, most of the leading software in the market has a neat and easy-to-use interface. Most software offers customizable UI that makes your tasks easier and gets things done quickly.
The financial data of your business must be handled carefully. Make sure the software provides data encryption, safer communication, and two-factor authentication. If the software is used by multiple users, ensure access to certain areas and actions should be limited to admin or designated users. Hence, it rules out the chances of unauthorized access to sensitive data.
- Customer Support
You will need technical assistance and guidance in setting up the software and getting familiarized with it. You will also need on-time support throughout the journey in case something goes wrong. Make sure you get round-the-clock assistance since most users update accounts on weekends.
Choosing the right accounting software will save your time and money. It’s recommended to get an expert’s opinion before considering what is right for you.
If you face a hard time choosing, we can do it for you! Our accountants are well versed in all major accounting software out there. We will help you find software that suits best for your business model and help you with setting up and migration if necessary. Feel free to reach out!