Your choice of accounting software can either address your current business concerns or be the cause of bigger frustrations. To make the most out of your investment, it’s crucial to find the right provider from the get-go. This article rounds up some helpful tips on how to choose accounting software for small businesses.
4 Tips in Choosing an Accounting Software for Your Small Business
Choosing the right accounting software can get pretty challenging due to the overwhelming number of accounting software in the market. Trim down your options by following these tips:
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Understand your current problems, needs and capabilities
Understanding the exact problems, needs and capabilities of your business is the best way to start. There are several ways to do this, but what we can recommend is to interview your accounting team about the struggles they’re facing.
Take the time to do discovery interviews with your employees. Since they deal with your accounting processes daily, they can provide useful insights that can help you make informed decisions. At the same time, it can empower your team, make them feel heard and encourage them to embrace the use of your chosen accounting software.
Once you have a good grasp of your business, the industry, all its nuances and your budget, it will be easier to lay down the parameters in selecting the best accounting software for your small business.
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Assess the features of the software
Each software offers convenient features—from automating your daily accounting tasks to generating comprehensive reports. While most of them have similar functions, always remember that the accounting software is right for you if its features can solve your existing business problems.
Key features of accounting software you must look out for:
- Inventory management
- Invoicing
- Income and expense tracking
- Customer management
- Payroll
- Reports
- GST calculations and overall tax compliance
- Timesaving automation
Aside from the accounting features, you should also consider the following:
- Integrations – Can you integrate the tools you’re currently using into the accounting software?
- Functionality – Does it function the way you intend it to do? Does it have the main features you need?
- Usability – Is it efficient and easy to use? How many users can simultaneously access the software? Is it accessible through the cloud, desktop, or mobile app?
- Scalability – Can you upgrade it with ease when your business expands?
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Check its data security
Choose an accounting software with robust data security measures in place. It should not be susceptible to malware, viruses and other forms of cyberattacks. This way, you’ll have more confidence in using it when storing your business’s confidential financial information.
If having secured data means paying a bit more, do it. It is better to invest in trusted software providers than have your data stolen due to a weak accounting system.
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Consider the knowledge and skills of your accountants
Find out if your accountants are knowledgeable and experienced in using the software. As the end-users, it’s crucial to acknowledge what they already know — and what they don’t know yet — to prepare them before using it. Investing in skills development, such as training, can also help in the successful implementation of accounting software.
Getting the insights of your accountants can save you from the tedious process of sifting through the huge numbers of software providers. They may already know the most compatible application for your business. Moreover, they may have experience with several other software, making it easier for them to transition into the new software you’re going to introduce.
Bonus read: Why should you keep your records digitally? This resource from the Australian Taxation Office explains why — Digital record keeping for businesses
Read Next: 6 Benefits of Cloud Accounting Software for Small Businesses
Work with experienced accountants
Do you need an extra hand in managing your finances? Our accountants at ABJ Solutions can help. With first-hand experience in using various accounting software, we’re confident that they can assist you in streamlining your accounting operations using your chosen accounting software. To learn more about our services, get in touch with us today.
