When running a small business, you’re typically working with a small budget, which means you’re always looking for the most cost-efficient way of doing things. You don’t have the time to manually do your business’s numbers, so it makes sense to choose from the many accounting software packages available. However, finding the best one for your needs can be challenging, especially when the software seems similar.
Fortunately, a few things can help you select a small business accounting software that perfectly matches your company’s needs. Here are eight factors to think about when choosing accounting software for your business:
Before you start your search, write a list of the core functions that you need. Whether you want to raise purchase orders or hold a stock of raw materials, ensure that your chosen software accommodates all that. Although all adequate accounting systems will help you keep basic accounting records, they vary in functionality, making it essential to determine what you want before starting your search.
Depending on your business’s industry, you may need specific functions out of your accounting software. If you’re an online business, you’ll want accounting software that easily integrates with eCommerce programs. For this reason, avoid limiting your search to popular, general accounting packages, as you might not get the most value from them.
If your business regularly posts transactions in other currencies, you’ll need software that offers multi-currency functionality, allowing you to post transactions in foreign and home currencies. If your other assets and liabilities are in different currencies, you must perform currency revaluations, making this feature vital in the software you choose. It’s important to note that foreign currency functionality isn’t a standard inclusion in business accounting systems, so ensure to check for it when you find software that seems to fit you.
Cloud or Desktop Software
Before the Internet, desktop software reigned supreme. Nowadays, cloud software is the norm, as you can access your accounting system regardless of where you are. Other people can also enjoy access to your accounts to take care of specific tasks for you, like your accountant or bookkeeper. However, you’ll need Internet access for cloud software to work, which is a factor to keep in mind if you have an unstable connection.
Another feature that makes accounting software incredibly convenient is bank integration, allowing you to download your bank transactions and complete bank reconciliations. If you automate these processes, you’ll save a lot of time and effort.
Since you intend to make your business grow, you’ll need software that can grow with it. An expanding business naturally means more transactions, which means you’ll need software that can process a steep increase in volume. Be sure to check the upgrades you may need to keep up with the future growth of your business and how much they’ll cost.
Security is an essential feature in the software that you’ll need to inspect yourself. You must outline what each user can do or see on your system, especially when you have multiple people using the software. Look for role-based security as well for added defences.
Lastly, choose small business accounting software that offers exceptional customer support. When you first use the system, you’ll need to be walked through its features, requiring training from the software provider. Once you get accustomed to the system, you’ll also need continuous support. Opt for software with 24/7 support, mainly when you use the weekends to update your accounts.
Finding the perfect accounting software is crucial for every business, as it will help you keep a close eye on your finances and ensure you stay afloat. By considering these factors, you’ll find software that perfectly suits your needs.
SMB Accounting is a team of business accountants on the Sunshine Coast offering small business accounting, individual tax returns, accounting software consulting, and various audits. Contact us today to learn more about how we can help your business!