For small business owners who want to manage their accounting processes in-house, the wide range of reputable software programs on the market is both a blessing and a curse. But the right business accounting software can simplify your bookkeeping tasks while providing truly insightful information about your business’s financial performance by division or product, future earning potential, and strategic inventory management.
Review these steps for how to select the right software to best serve your business’s needs and start making the transition from error-plagued pen and paper to the wonderful world of automated digital recordkeeping.
Determine What You Need
The accounting software products available today range from programs that cover the basics to those with soup-to-nuts, full-service packages. Think about the financial needs of your business based on factors like size, number of employees, different revenue channels, types of vendors, and complexity of the sales model.
Before you invest in any software system, be honest with yourself: Do you have at least a general understanding of business accounting? If the answer is no, then even the most basic accounting program will not help you; your best bet is to consult with a financial professional or consider adding one to your team.
Review Your Options
General categories for software offerings include free programs; small business payroll and accounting; comprehensive business management programs; and online-based applications. Would you like to track point of sale, customer relationship management, and inventory regulation? If so, you should go with a business management software program. Do you have limited financial needs and fewer than 15 to 20 customers? If so, try getting started with the free QuickBooks software; you can easily upgrade to the more sophisticated, paid version when your business has grown.
Once you’ve determined the general type of software you need, you can begin to investigate further options such as specialized add-ons or industry-specific packages. As the accounting software industry has become more competitive, products have evolved to cater to specific business needs, like online payments, inventory management, medical billing, remote access, and scanned receipts. Many brands offer the capability to make custom reports for decision making; some even produce industry-specific modules, which allows your staff to redirect that time and energy into actually using the reports to improve your business.
Consult Your Stakeholders
The final step in choosing a software program is to check in with the people who will be most affected by its daily operation and capabilities. Review your top choice with your staff to get their input, and consult with your tax professional or accountant for any guidance on tax computing needs and compatibility issues.