Tips to find the right accounting software for your business – Part 2
In our last article we had talked about some tips and ideas for choosing right account software for your business. Keeping in mind the same quest we are with more tips mentioned below will give you an idea of considering the right options before finally making your mind to consider buying a particular accounting software.
Considering the kind of industry your company is in and the organization’s size:
Many a times there is a dire need for specific accounting software for industries of a particular kind.
For instance, a manufacturing company may require a software that would have customized modules like budgeting, online banking interfaces, etc. rather than just mere checkbox selection functionalities etc., which would be required by a small start-up business.
Industry-centric accounting software might carry a higher budget but their benefits will arguably surpass and compensate for their costs. Such software will precisely and accurately fulfil the company’s specific demands and consequently help the company grow.
However, some companies who feel that their accounts and finance department’s needs can be met by a generic accounting software then choosing a highly sophisticated one will be a waste of time, money and human resource. It is the management, the accountants, HRs who are together responsible for knowing what kind of and of what complexity an accounting software should be selected so that their business requirements can be fulfilled.
The company’s size is also a crucial factor. A company having less number of employees, limited segmented market, less sales and market share compared to a bigger company will have quite different requirements. Adopting a sophisticated and complex software will only burden and make it more difficult to handle the operations of the software and moreover, there will be more wastage of efforts on handling the software rather than the software managing your data!
Realize what the current system is not providing or fulfilling:
Realizing the shortcomings in your current software will make you look out for those features which are present in other software. Are VAT returns too complicated, financial reports are not detailed enough or maybe manual invoicing is taking far too long? These are some of the areas where accounting solution is irreplaceable and work the best for such requirements and in these situations.
Analysing how the selected software can benefit your business:
From a business perspective, time and money is a lifeline. An ideal accounting software will save both time and money and complete actions with perfection way before the deadlines.
If one has to sit at a desk for 3 days to compile a VAT return every 3 or 4 months, it is a clear indication that 18 days are being wasted every year that could be instead utilized for spending on growing your business or as leisure time.
Be cognizant-of the fact that a single integrated application is far better than having different software for different operations:
A single whole application with a good backup and efficient support will have an edge over having different software for performing different functions. An ideal integrated application will serve you all the functions on one platform within one framework with full dependability and reliability. This proves extremely cost-effective and avoids time-sucking software that were otherwise being used for managing different functions. And remember, full dependability on one accounting software doesn’t imply vulnerability or risk for your company. If the right selection is made the results can be extremely rewarding.
Holding deliberations with the accountant and the staff:
Holding consultation and meetings with the accountant would be an important step before finalizing the decision to implement a software. Accountants know the nature of data, of the company, in and out and have a very well understanding about the kind of business the company deals with. These people can be the best people to recommend a software which they think can work with the kind of programs they have as they have a clear picture of the requirements surrounding the accounting activities. Gone are the days when there were only paper work, files and folders for maintaining records, calculating revenues, profits etc.,. A constant bombardment and addition of financial data demands effective storage and maintenance and this is something which a good accounting software has a real-time mastery on.
- Interpreting Return on Investment:
A good return on investment is something which every company strives to acquire. Greater Return on Investment may come through some features that might come expensive. From the context of return on investment, it is equally important to consider the cost of services like support and training. It’ll be futile if the users have not been trained enough, as in how to manage the accounts, or hardly know the applicability of the software, or are simply left helpless and unattended in case of any help needed when there is something wrong or faulty with the software.
- Consider the budget:
The price range of accounting can range from $10 to $150 a month, or $350 or more annually .For companies that have a high amount of inventory, several employees or deal with various businesses simultaneously, software that keeps a check of the inventory, aids in planning purchases, ensures smooth cash flow will be helpful in these situations.
So one should make it a point to know what all are included in the total cost of the software that includes the cost of maintenance, support and time to time up gradation of fees.
- Ensure that the software has flexibility: it will help our business grow
Flexibility is often trusted as the one of the main features of any software. But what do you exactly mean by this term?
Flexibility means that the software has the capability to adapt to the potential and future changes in the working environment or requirements of the company. A rigid software will not allow for any change or improvisation in the coding, which can altogether result in incompatibility and inefficiency to deal with the issues pertaining to the new requirements or changes in the company.
- Integration with other tools- required for your business or not?
Think over if there is a need to integrate with other packages (payroll, HR, CRM or industry specific products). In some cases, the enterprise providing you the accounting software will have other well establishes software with which the accounting software can be integrated.
- Ease of use:
This is a very essential factor that is often overlooked and considered insignificant. A well- designed software with the modules and features your business needs is more than enough. Again, there is no use of buying software that is cumbersome and where novice users cannot operate.
Whatever be the software, keep in mind that characteristics like Reporting and analysis, Graphical representation of data, automation, customization, internet connectivity, interoperability(should be ideal enough to be used in almost all the departments of the company), flexibility and scalability, security are ideal features of a good accounting software that will be perfectly suitable for all your business needs. In short, the right accounting software for managing your finances in your company can bring a huge difference and get beautiful results.
For further help, you can contact email@example.com to help you select the right accounting software.