The first question that strikes here is how to choose the right accounting software for your business? This can get really confusing at times as there are plenty of products available in the market today. Every business has to pull off various kinds of tasks for which they require different types of software. One of the important software that a business requires is efficient and best accounting software.
Accounting software helps a business carry out its daily accounting tasks. It provides reports on the profits and losses incurred by the business.
Efficient accounting software allows a business to analyze how the money is flowing in and out. It has different modules to deal with different areas of accounting.
The core modules of accounting software include:
- Accounts Receivables
- Accounts Payable
- General Ledger
- Billing Stock/Inventory
- Purchase Order
- Sales Order
- Financial Close Management
It helps a business in assessing its financial health and in performing financial auditing. It also helps it in meeting the legal requirements of the specific region or country where it is operating. Good accounting software plays an important role in steering business to success.
Choosing accounting software for your business is a challenging task. When you will compare different accounting software available in the market, you will find that each software comes with a different set of features and pricing.
Best Accounting Software: Why is it Critical?
Have we ever thought in our minds as to why is it accounting software important for your business?
Well, the answer to this would be mentioned in the following points:
- These days the software development companies in most of the countries develop software keeping in mind the common user.
- Therefore, people who have completely zero accounting knowledge can also control proper bookkeeping with the user-friendly accounting software.
- It allows creating reports that show the overall financial rating of the company.
- It provides audit route reports and sends them in excel format.
Accuracy and Speed:
- One of the greatest gains of accounting software is a higher degree of accuracy and speed.
- It provides real-time data that helps in assigning business transactions.
GST Apt Future:
- It is very tough to calculate GST manually for businesses. Therefore, accounting software greatly aids businesses in carrying out accounting tasks.
- GST ready factor of simple accounting software gives accurate calculations of GST.
- Helps in GST settlement and tracking with just a click.
- Restores a knowledge database on GST.
- It cuts costs and provides digital invoices.
- It enables wide openness.
- Helps with taxes.
- Keeps one’s eye on cash flow.
Best Accounting Software: How to Choose?
One of your top preference as a small business owner is keeping a close eye on the money you bring in payout, which is why it’s demanding to have the right accounting software.
You need an inbuilt program that helps you to perform your daily accounting tasks:
- Recording Payments
- Tracking Expenses
- Invoicing Customers
- Reconciling Transactions
If you are selecting the accounting software for your business then you must already know what you need analysis is as per the following points:
- Consider your accounting needs as this is the key point that you should consider when making an accounting software selection for your business.
- If you run a small or medium-sized business, you should find accounting software specifically designed for small and medium-sized businesses.
- If you run a big business that generates a lot of revenue, then definitely your accounting needs are also bigger. In that case, you require a robust accounting system software that is capable of handling heavy accounting tasks efficiently.
- Another point to consider is the type of business you have. Specialized accounting software is available to satisfy specific accounting needs of businesses operating in different niches.
- For example, there are accounting programs available that cater to the unique needs of retail businesses, manufacturers, restaurants, and hotels, etc.
- Second is to consider the cost factor you should go for the accounting software that perfectly fits your business needs and at the same time does not dig a hole in the pocket.
- Price of a business accounting software depends on various factors such as the number of features it provides, the number of users it supports, whether it is online or cloud-based, etc.
- Some business accounting software offers online or cloud-based versions. You are required to pay a monthly or yearly subscription fee to use such software.
Why there is Need for a Debate?
Online or cloud-based business accounting software comes in multiple pricing plans. If you opt for the annual subscription plan rather than the monthly subscription plan, then you usually get discounted subscription rates.
- Some business accounting software developers even offer a free or trial version of the software. The free versions are usually basic in nature as they either offer limited features or they restrict the number of users, clients, etc.
- You will find that free accounting applications are only useful if your business is very small and has very limited accounting needs. Free software is also useful if you want to test it for a longer period of time than the software’s trial period allows.
- Business accounting software features of accounting software vary depending on whether you want a simple software or an advanced one.
- Small and medium-sized businesses usually do well with an accounting program that provides basic features like income and expense tracking, invoicing, bank reconciliation, accounting reports, etc.
- You should go for an advanced accounting system software.
- If you want it to have features such as inventory tracking, vendors management, automatic tax calculations, tax reporting, purchase ordering, timesaving automation, multi-currency transactions support, employee’s management, project costing, payroll processing, transactions categorization, departmental and cost center analysis, multiple bank account management, multi-dimensional general ledger, multi-company support, credit card processing & encrypted data vault, etc.
Accounting Software: Let’s Discuss the Factors!
Add-ons and third-party integration when you are making accounting software selection for your business, choose the software that has the provision of incorporating add-ons to increase its functionality.
- For example, you may want an add-on that enables you to remotely access the software, or you may want an add-on that allows you to accept payments online.
- Also, you should find accounting software that can integrate with other software such as point of sale (POS) system, e-commerce software, customer relationship management (CRM) program, enterprise resource planning (ERP) software, payment processing software, inventory management software, Google apps, email marketing program, etc.
- Integration with other software helps in automatic sharing of data between systems in real-time.
- Taking care about usability when finding the accounting software, usability is another important factor to consider.
- If you want that multiple users should have access to accounting data, then find the business accounting software that offers multi-user accessibility.
- If in case, you run more than one business, then you should find accounting software that allows working on multiple businesses under a single account.
Why there is an Urgency?
If you want to access your software anytime, anywhere and from any computer, then find accounting software that is hosted on the cloud.
Important Pointers that define the importance of having efficient accounting software:
- Check whether the software can be accessed through your mobile phone if you want to carry accounting through your phone. Many software developers provide mobile apps so that you can monitor important data and perform core tasks while you are traveling.
- We think of is about data security if you want to use an online or cloud-based business accounting software, ensure that the software service provider is keeping your data fully secure. You can ask them how and where they store your company’s data.
- About scalability wherein, you may buy accounting software that suits your accounting needs at the time of purchase. Later on, when your business starts growing, you may find that your accounting software is unable to meet your business needs.
- So, it is important that when you make your accounting software selection, you take into consideration that the software has the capability to scale up with growing business needs. Before buying the accounting software for your business, you can check with the software developer whether you can upgrade to a higher version in the future or not.
- We can think of is about the user interface. You should find accounting software that not only meets your needs but also offers a simple and clean user interface. A simple and clean user interface makes it easy for all types of users to work on the software.
- We can talk about data export facility if, for any reason, you may want to shift to another business accounting software in the future, then you require a data export facility in your existing software. So, while making accounting software selection, look for the one that has this facility.
Step Into the Future
You have to consider many factors if you select the best accounting software for your business. Accounting software that can satisfy your accounting needs, and at the same time, is pocket-friendly, go ahead and buy it.
- Consider other factors such as advanced features, compatibility with add-ons, third-party integration, multi-user accessibility, anytime and anywhere accessibility, etc.
- Getting the perfect accounting software for your business allows you to accomplish complex accounting tasks easily.