BLOGs
Accounting Software
Published November 10th, 2016 by

5 Foolproof Guides on How to Choose Accounting Software for Business

5 Foolproof Guides on How to Choose Accounting Software for Business

Why buy accounting software when you have an accountant? This question might bug some business owners especially these days where everything seems to be performed with the help of technology. In the old days, maintaining the financial reports and books for a business means manually recording the figures in a paper ledger. The age of technology made the interaction of people around the globe possible. It even made having “virtual” friends possible.

The way people interact is not the only thing that was affected by the technology. Today, businesses of all sizes are making use of computer programs that aim to streamline the production processes. The existence of applications like accounting software dramatically reduces the potential of committing errors due to the limitations of being human. In addition to that, access to critical financial information becomes as easy as a few keystrokes.

The problem, however, lies in finding the accounting software suited for your business. With all the options available, reading about each product becomes a daunting task. Lucky for you that you have come across this article as it will enlighten you on the essential features that you need to look for when searching where to buy accounting software. Before that, you will be given a concise idea on what an accounting software does so you could understand better why you need to watch out for certain features.

What is an Accounting Software at a Glance?

To put it short, it is a computer software designed to help accountants manage the financial accounts and perform accounting operations that used to be done manually on a paper ledger. It aims to make accounting work easy with the help of technology. But what is accounting? Accounting is the general term used for the process of recording financial information of a certain institution, company, or organization.

For businesses, accounting is done to meet the legal requirements implemented in their city. Aside from that, it also plays a crucial role in the managerial requirements as financial matters are at the core of any business. Through accounting, the financial experts are able to measure, verify, classify, and interpret the financial information. The financial status could be either the boom or doom of a business. Who can use accounting software depends on the skills of the person, but it is not limited only to accountants.

Available accounting software may vary from simple programs intended for individual record-keeping to more sophisticated programs that are able to process accounts payable, accounts receivable, inventory, and payroll. Depending on its cost, some may have add-on features that aim to make the life of the accountant easier by the quick generation of reports. Now that you are aware of this, you are now ready to know the tips on how you could choose the right software for your business.

5 Ways to Help You Choose Business Accounting Software

Different factors should be considered when choosing a product that is best for your business. Understanding the basics of accounting is crucial. That is the reason why it is covered in the first part. The other factors concern your business itself and its accounting needs.

  1. Know the Different Types of Available Accounting Software

The business size and the complexity of your financial transactions have something to do in choosing the right accounting product. Below is the list of categories available for the said software.

Free Accounting Software

According to US Small Business Administration, 62% of all the businesses in the United States have less than five employees. This big number may have paved way for the proliferation of free software in the market. Nothing is wrong in using free accounting software as long as you can make sure that it can deliver the basic accounting services that are promised. Check also if you can scale up to a paid version in case your business gets bigger in the future.

Small Business Accounting and Payroll Package

This site https://www.crowdreviews.com/best-accounting-software provides you with a comprehensive list of top-selling accounting programs with reviews from the customers who have tried it. The testimonials will also give you an idea on what are accounting software suited for your needs.

Applications under this category feature basic accounting tools needed by small businesses in processing their financial reports.

Web-based Accounting Software

The growing trust of people in the web as a safe business setting paved way to the development of online accounting applications. What accounting software do large companies use sometimes falls into this category because their financial experts need a constant access to the data anywhere they are to make sure that the information is correct and updated.

Business Management Computer Programs

Software that fall under this category are costly compared with others, but features and functions that allow you to track other financial-related matters such as inventory control, customer relationship management (CRM), billing, the point of sale, and enterprise resource planning (ERP), among others.

  1. Choose a Software Based on Your Needs and Accounting Skills

What industry does your business fall in? Consider choosing a software that is specifically designed for the niche of your business. For example, there is accounting software built for restaurants, the manufacturing sector, commercial enterprises, and others. Also, check your skills if you can manage to comprehend how is accounting software used.

Expensive accounting software has additional specialized features that could be a bit complicated for people who are not financial experts. In this case, you might need to hire an accountant to manage the software and all your financial reporting and recording. Take note that though accounting software is developed to make financial reporting easy, a certain level of financial literacy is needed to make it work. A small business might have no need for complicated programs because the transactions are easy to manage.

Remember to conduct a research first before choosing the software that you will use because it will affect the management of your revenues. Reviews of accounting software by CrowdReviews.com offer insights from customers who have tried a particular product themselves. You may check it out to have an idea on what features might be useful and not for your business.

  1. Consider Your Budget When Choosing an Accounting Software

A business that is making millions annually has different needs compared with a company that has thousands of profit in a year. Small businesses might not need additional specialized features to manage their financial recording and reporting. When it comes to computer applications, the more complex and more specialized a program is, the more expensive it becomes. Do not waste thousands of dollars in a software that you cannot use the full features because you simply do not need it. The reason why we need accounting software is to make our lives easier rather than complicated.

On the other hand, many business owners find free software beneficial for their cause because they do not have to spend a dime. Being able to use something for free gives an immediate gratification to the user. As a result, many tend to use free products because they have nothing to lose. Using free accounting software in business could mean otherwise so small businesses should be skeptic about the rampant free software in the market. The financial aspect of a business is important, and inaccuracy in the reports could result in hefty penalties.

  1. Check Out the Add-on Features That May Help You

Are you having difficulty with your tax reports? Tax software is also available, but you need other accounting reports to make a proper tax computation. As such, check if the accounting software that you plan to buy has add-ons that will make your tax software compatible with your accounting application. Check out this site https://www.crowdreviews.com/best-accounting-software for more information about the useful add-ons for your business.

The add-ons are not limited to the compatibility of the abovementioned software. With add-ons, a new range of functionality becomes possible. To give you an idea, add-ons enable you to have remote access to the software, which is convenient if you are frequently on travel or business meetings. You may also accept online payments and integrate it with other business-related software to achieve a comprehensive functionality at the grasp of your hand.

  1. Think About Web-based Applications

Web-based or cloud-based applications became prominent these days because of the ease of access that they offer. Accounting software that is cloud-based comes with a variety of advantages. It means that you can access your financial data wherever you are as long as you have an internet connection and a device that is capable of accessing the web such as a smartphone, a laptop, or a tablet. When to use accounting software will not be a problem to you.

Most software could run using any browser, and the installation of updates is done automatically so you do not have to trouble yourself about the patches and upgrades. Moreover, it also serves as a safe storage location for your financial documents in case your physical office meets an untoward event like a fire or a natural disaster. If you think that your business would benefit from such feature, it is good to consider a cloud-based software.

In this time where the traditional use of ledgers to maintain the financial records of a business becomes passé, it seems a must to have a reliable accounting software to help you in this regard. It is not simply to conform to what is mainstream but also to maximize what the technology offers to make your maintaining of financial documents easier. If you still cannot decide on what software to choose, try reading the reviews of accounting software at CrowdReviews.com to know more about what other people think regarding a specific financial management software.

Keith Moore

Keith Moore has worked with several leading Android development agencies to build customized mobile apps enabling businesses to extend the use of their services to smart phones and mobile devices.

Our rankings are completely independent, transparent, and community driven; they are based on user reviews and client sentiment. These accounting software companies had to earn their way up and didn't just pay their way up.

View Rankings of Best Accounting Software Companies