Top 7 Tips For Choosing An Accounting Software For Your Small Business
Even for the smallest businesses, investing in accounting software simplifies tasks. There are fewer cases of redundant entries. For a startup, the aim to ensuring that the business picks up to become competitive with the rest of the industry leaders. Therefore, investing in such software helps streamline your books.
As a business owner, you need all the help you can get for your business to thrive. After getting capital from your savings and other investors, it’s now time to decide on what necessities to invest for your business’s growth. Accounting software is among the top. Here’s a highlight on how to settle on accounting software that suits your business.
1. What accounting needs does the company have?
With tons of software in the market, it could be confusing on what to settle on. However, know what features you are looking for to help you narrow down. Some of the features could include but not limited to:
- Business tax reporting
- Merchant account to accept credit card payments
- Supplier records
Once you know your needs, it’s easier to make a choice.
2. What niche?
With the competition out there, there is software that is designed for specific industries. You could be in the construction or the manufacturing sector. In the case that your business has particular accounting requirements, choose one that’s tailored for the specific niche.
3. Get to connect with other business owners
You could be a newbie in the sector, and you need all sorts of advice. Before purchasing the software, talk to more than three people who are in your industry. If possible, get those that have an almost similar business like yours.
Get to connect with them and know what type of software works for them. Go in-depth and know how effective the system. Based on your findings, you can make an informed decision.
4. Consider business growth
After you have identified your business needs and talked to other business owners, you need to consider your business growth.
Even if you start small, it does not mean you’ll be in the same place five years to come. Invest in software that can accommodate the business’s growth. Does the software have modules you can add later? Is it possible to upgrade to a version that can handle your business when it grows?
Ensure that the software you purchase has an option to export data such as CSV, so it’s read in the case that you switch to another software in the future.
5. Are there free trials?
Does the software have a specified trial period? Get software that has options for trial. You want to sample your future software before making the final decision if it is an excellent fit for your business. After all, you don’t want to be invested so much into buying something that may not work for your company.
Some will have a 7-day trial, others a 30-day trial and so on. Always read reviews of past clients to get a glimpse of what you are getting into as well.
6. Don’t pay for what you don’t need
It is a bit tempting to pay for features you are not sure whether you’ll use or not. For a small business, it is less complicated hence it will require software to have fewer features than a large-sized business. Don’t buy more accounting software features you don’t need.
Consult with your service provider if there are support costs involved so that you can factor in when budgeting for the accounting software. Sometimes, there may be errors when using the software or when trying to access it through Chrome and you may need to contact support. You may find that it is a simple solution to fix the issue just as correcting an error on Chrome.
As the business grows, you can always upgrade according to the business size.
7. An accountant vs. accounting software
As a small business, you may feel that the software is enough to you strongly need an accountant. Even as the software tracks daily accounting tasks, you’ll need an accountant to have a look at them. You can hire a part-time accountant for the job or get a virtual one.
The accountant will be able to give you a detailed report on how your business is performing if the expenses are too high than the income and so on. Look at the software as a way to simplify things not necessarily to do away with the accountant.
Investing in your business is the best thing you can ever do for it to succeed. Nobody wants in ten years from now to be in the same space they were before. Accounting software will simplify your reporting. Invest in one to make you competitive enough in your niche.
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CEO and co-founder at Cloudsmallbusinessservice.com