Choosing Accounting Software for Your Small Business
When you run a small business you often already have a good understanding of some key areas. This usually includes marketing, management, quality customer service, so on and so forth. However there is one essential area of small business that is often neglected. Accounting is the key area that most new business owners fail to understand and wistfully hope that "all the numbers will line up in the end." Accounting is an integral part of the business and if you are not up to snuff, then you face potential problems with the IRS, incorrectly paid expenses, employee theft/negligence, and other financial pitfalls.
Luckily, accounting in this day and age can be automated. Most companies use accounting software over the traditional method of using paper journals and books to record transactions and accounts because of its simplicity and ability to reduce human error. When deciding it is time to implement accounting software into your small business there are a range of features you should look for.
Cost
One of key features in any accounting software to small businesses is cost. You will want to look for a reasonably priced plan that suits your needs, there are many free packages available as well, and however they usually have a smaller limited functions. An alternative is to look for accounting software offering free trial packages. That way you can test out the product and base your decision on your experiences without committing any funds.
Ease of Use
Very few small business owners are accountants by trade. Unless you are running an accounting firm or have made your living from accounting, chances are you will want to look for an simple to understand program. Focus on software that has a simple and clean user interface for easy navigation.
Reporting Capabilities
Another major factor to consider before purchasing accounting software is the reporting capabilities. Many are able to easily create invoices, produce income reports, customer reports, expenditure reports and a various other reports including ones that can be customized to your specific business needs. These are extremely beneficial and can help you make informed decisions when running your business, be this whether you have to cash to invest in a new asset or find out which product is selling best.
Ability to grow with the business
Many software packages are done on a recurring monthly fee basis, if you pay more for the premium package with it will come further access and support. It is important to decide on a package that will fit your needs in the current scenario but will also be suited to your company as it grows and expands.
Accountant Access
Some accounting software will charge to provide access to information required by an accountant to submit your year end reports. This would be another unforeseen expense that was not budgeted for in an already tight budget. Therefore it is important to see if there are any further fees to allow this access or if that access is granted for free.
Overall there are many things to find out before purchasing any software, due to the variety in small businesses. Some accounting packages may suit one business but not another. It is important to understand your own needs and find a package tailored to you. There are a range of websites available online that will allow you to do direct comparisons, read reviews and see prices. Implementing accounting software will enable you to automate a tedious but important process and free you up to focus on other aspects of your business.