Do you track the expenses of your business? If not, now is the time to start doing so. This is because, at some point, your business needs some form of accounting. And, if you fail to do so, the chances are that your business will not be able to survive this competitive environment.
An accounting software streamlines this process by organizing all your data at a central location.
Accounting software can help you make daily financial tasks more efficient and offer significant insights with useful reports to analyze your financial health. A wide variety of accounting solutions are available in the market. But, the real question is about choosing the right accounting software; all these solutions appear to be similar at first glance.
Consider the factors given below to select the best for your business.
Table of Contents
1. Scope of Business
The most crucial factor that should catch the eye of business owners is the scope of the solution they are opting for. They need to look at the primary tasks that the software can perform.
Also, make a checklist of other functions that you might need help with when your organization grows, such as managing the payroll, general ledger, accounts receivable, accounts payable, inventory, and the like.
You should also ensure that the software you select handles all your requirements efficiently and is also future proof. The software that does the job perfectly today might not handle half of the business operations after a couple of years.
Another factor to consider is the importance the company (whose accounting solution you will use) gives on enhancements and improvements. If the company doesn’t fix bugs and offers limited enhancements, the accounting software will surely fail to deliver in the future.
Oftentimes, businesses deploy accounting solutions that their employees are not familiar with. This leaves their staff clueless, and they are not able to figure out the right approach.
Ensure that all your employees (especially the accounting team) receive proper training right after the solution is deployed. This will help the employees extract the most out of the solution, making your team more efficient and highly productive.
It is also necessary to assign one system champion and train him/her about all the nitty-gritty of the solution. This person should also act as the go-to-person whenever any employee faces any difficulty. If this is not possible, please ensure that the vendor is readily contactable and offers round the clock support.
3. Cloud Hosting
Another prominent influence in the accounting industry is the adoption of cloud-hosted accounting solutions. This is because desktop-based accounting solutions offer limited functionalities, are installed manually, require extra storage, and much more.
However, if you opt for a cloud-hosted accounting solution such as hosted QuickBooks, your hosting provider will take care of all such requirements and offer a seamless accounting experience.
Cloud solutions offer the best of both worlds – the features of your favorite accounting solution and the benefits of the cloud. Some of them are remote data access (with a stable internet connection), no need to install the software and purchase the license, better performance and data security, and much.
Hosted accounting solutions come with an added benefit of integrating multiple applications like OffceTools and Microsoft 365 in a single solution to form an end-to-end business solution.
The cost of accounting software is an essential factor in choosing the right solution for your business. Many companies offer a desktop-based solution and charge a one-time fee while some offer SaaS solutions and charge a monthly fee.
The monthly plans typically start from $10 and can go up to $100 or more (depending upon the features and number of users). If you’re willing to pay an annual fee, there are chances of getting a decent discount.
If you wish to get your hands on more advanced features like reports and analysis, automatic payment reminders, inventory management, project tracking, sales tracking, and more, there are chances that you’ll have to shed more money. However, some companies offer a free version of their software, but the functionalities are quite limited (useful for small businesses).
Another crucial but the most neglected factor while choosing accounting software is support. No matter how easy or smooth the application is, there will always come a time when you will need system or IT assistance. This is where the quality of support offered comes into the picture. And, if there is no support provided, your entire investment will be of no use.
There are chances that cheap accounting solutions do not offer adequate support (that’s why they’re cheap) or are not available during non-business hours.
For instance, if you need assistance during non-business hours and nobody is there to hear your issue, it will hamper your business. A simple way to check the quality of support is by calling the customer support number during non-business hours (if the vendor claims to offer round the clock support) and check the quality of response.
Finding the right accounting solution for your business is not an easy task as it involves company finances. Once you find something suitable, you must invest your time into researching more and then come to a conclusion.
If you still need help finding the right accounting solution, get in touch with our Solution Consultant at 855-906-2884.