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Things to Keep in Mind When Choosing Accounting Software

By Analytix Editorial Team

July 28, 2021 0 Comments
Things to Keep in Mind When Choosing Accounting Software

Accounting software can provide multiple benefits when chosen on the basis of the business’s requirements:

  • Streamline accounting and bookkeeping operations
  • Streamline financial management operations
  • Manage cash flow reliably
  • Address high-volume, time-intensive workloads
  • Generate reports that are accurate and reliable
  • Help business owners make informed decisions

How to choose the right accounting software for your business

No two businesses are identical, even if they operate within the same industry. Selecting an accounting software requires an understanding of the business’s unique needs; features that benefit one may not be ideal for another. Following are some factors that business owners should consider when evaluating accounting software.

1. Features of the software

What are the expectations and requirements of the accounting software? What is the work carried out by the business and how would having software help? Who will operate the software?

These are some of the questions businesses need to ask themselves when choosing accounting software. Depending on the industry and client needs, here are some business accounting software features that are commonly preferred:

  • Tracking cash expense and income in a way similar to a classical manual accounting system
  • Reconciling card and bank accounts held by the business
  • Tracking cash flow and managing accounts receivable
  • Managing invoices and sending reminders when applicable

Importing bank transactions; tracking bank deposits and withdrawals

2. Expenses involved

Accounting software expenses consist of more than simply the purchase price of the software. Additional costs can be incurred with:

  • add-on features
  • additional authorized users
  • annual fees and subscription costs
  • software setup

A realistic budget figure can be estimated by evaluating the above costs and including a margin for potential unexpected expenses. This can cover the cost for purchasing additional security or additional access rights, for example.

Before purchasing a cost-effective accounting software, consider the business’s size, number of currently active clients, dormant client accounts, and the potential to scale the software as the business grows.

3. Reporting capabilities

A major feature of accounting software is the enhanced reporting capabilities that help provide business owners with information relevant to business decision making. Creating necessary reports from available data and information is a major process and can influence the benefits derived from automation. Reports may need to be detailed, or to provide owners and operators with comparative data. Depending on business needs, reports may need to include both capabilities simultaneously. Some of the reports that can be expected are:

  • Profit and loss statement
  • General ledger
  • Accounts aging, for both receivable and payable
  • Tracking invoices, both upcoming, and overdue

4. Troubleshooting and technical support available

How much help is available for software users, once it is installed, deployed, and working? Being able to access it without challenges is a critical factor.

Troubleshooting capabilities and assistance are necessary to streamline operations, including daily utilization, periodic maintenance, and repairs as required. Some of the areas where troubleshooting and technical support may be required include:

  • Accessibility or issues faced in accessing the software despite configuring it properly
  • Challenges accessing software on mobile or laptop interfaces
  • Security threats
  • Specific kinds of security threats, including ransomware and phishing that may lock authorized access to the information

Choosing the right accounting software: Professional assistance for accounting services can include:

  • Pre-installation review and assessment
  • Assistance in choosing the most relevant software
  • Customizing reports and data interpretation
  • 24×7 technical support, depending on the selected vendor

As business owners, the primary focus is business development. If the wrong accounting software is deployed, or inadequate support is available towards its operation and repairs, the business may end up losing both money and clients.

Accounting data contains critical business data. Professional assistance not only safeguards the interests of the business deploying and using the software, it also ensures safety of client data.

Furthermore, professional assistance, in the form of a business partnership, empowers business owners to pursue the larger work of revenue generation and business building without jeopardizing existing business, reputation, client trust and goodwill.

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