By Analytix Editorial Team
Selecting the right accounting system for your business can directly impact the profitability of your business as it allows business owners to closely monitor the financial health of the company. To leverage an accounting system’s capabilities to its fullest potential, the system relies heavily on accurate data and bookkeeping transactions being updated on a timely schedule.
How to select the right system?
Although many off the shelf accounting system packages exist, businesses often have their own unique set of needs. As with many other business functions, many companies find they need to customize an accounting solution to maximize its performance. Following are some considerations in selecting an accounting system for your business:
Your accounting system tasks will depend on this information. This will include details such as logging bookkeeping transactions for invoices generated, bills to be paid, vendor payments, etc.
If your employees consist of permanent staff, part-time staff and possibly even contractors, your payroll requirements will differ by each type of employee category. Payroll specifications for each employee type need to encompass working hours, leave taken, terms of employment, applicable benefits, etc.
If your business includes international sales or operations, you may need to address foreign currencies or exchange rates. Therefore, your accounting system would need a feature for processing foreign currencies and reporting these sales and costs as part of a consolidated financial reporting.
Your accounting system may need to bridge several different divisions if they have separate financial records. Tracking and recording transactions across various divisions or departments may be a business requirement in which several different business functions tie together to create the final deliverables, and each department or division must account for their budget in delivering the product or service.
Businesses that depend on customer volume, such as retail, are interested in capturing sales data such as products sold or a breakdown of services rendered, frequency of purchase, average sale, etc. This type of reporting is something that the business owner would rely on the accounting system to generate.
How much of your business is online? Your accounting system might need efficient online interfaces for tracking and reporting orders, generating invoices, and recording payments.
Many business owners find they need more than just the accounting software. Once the software is installed, they may need technical support or accounting expertise on how to generate and analyze the reports and data the system is capable of generating. A growing business may seek supervisory assistance, including professional expertise such as CFO-level financial guidance.
Analytix Solutions has been helping small to mid-sized businesses streamline their accounting processes and better organize their finances. This has helped our clients strategically manage their business growth and recognize higher levels of profitability faster. To learn more about how we can help your business do the same, call us at 781.503.9004 or send us an email at [email protected].