A Guide to Choosing the Best Accounting Software
Businesses requires accounting software to be able to manage the financial tasks and obligations. Some of this tasks are tax returns, sales and invoicing, payroll processing amongst others. With several available accounting software in the market today, companies can choose the one that fits their financial requirements. We look at some of the important points to note when choosing accounting software.
The most important thing will be to understand the major activities or tasks carried out in the finance department. What exactly does the company need the software to do? List all the solutions the software will offer to the company. This will help in determining whether the company will need a bespoke software or an off-shelf software.
When choosing accounting software, consider the possibility of expanding the business. The software should be able to accommodate future growth of the company. As the company grows, the number of clients also increases as so does the financial tasks.
Consider the number of users the accounting software will allow for a go. Some systems do not allow simultaneous performance of tasks by different users at the same time. A good accounting software should also allow for an addition of a new user and removal of an old user. The software should have a high level of integrity especially when handling delicate issues such as payroll computation and tax filling returns.
The cost of the software is also another major point to note when purchasing accounting software. Analyse what the total cost will cater for. Some of the aspects the cost charged should cover are the software, the installation, training, and maintenance costs. Most software will require the licenses to be paid upfront and renewed annually at a certain fee. Also, consider the location where data will be hosted. If the company intends to save on costs, they can have the software installed off-site and data hosted on cloud. There are corporates companies who can cater for the costs of having the data and software installed on their servers.
Is the software user friendly? Some of the available accounting software requires the users to have high-level accounting skills to be able to operate. After installation and implementation, the vendor or developer should offer adequate training to all users on how to use the system.
The user should be versatile enough to give customized reports as per the users requests. Consider the capability of the software in terms of incorporation several functions together such making an order and generating an invoice together, submitting returns, etc. A good accounting software should keep a record of all companies’ inventory.