The pandemic was quite a wake-up call for businesses around the world.
It illustrated that it is time to adopt and integrate technology into the system as much as possible. After all, only through technology and digitization have all of us remained connected despite being limited to our houses.
Adopting technology is much more than ensuring collaboration through conferencing tools or incorporating a CMS system for businesses. Instead, it calls for automating different processes within each department to reduce the reliance on a given human resource.
This also includes accounting software. Integrating such software into businesses ensure that your accounting department remains efficient and productive regardless of where they are in the world. Currently, as per Statista, over 64 percent of small businesses use accounting software.
However, merely knowing that it is high time to introduce accounting software into your business is not enough. You must also select the right one among a sea of options. Here is how you can arrive at the right decision.
- Know your available options
To select the best small business accounting software from the mix, you must begin by educating yourself regarding the various types of accounting software available.
Here is a brief run-down of the options available:
- Small business accounting and payroll: Such software is developed for the needs of small businesses. They offer accounting tools and reports that can be accessed by a limited number of users.
- Business management software: Considerably more premium in price, this software offers more features than small business accounting software. They also support various financial functions like inventory control, point of sale, purchasing, billing, enterprise resource management, etc.
- Web-hosted accounting software: Relatively new to the game, this online option includes all cloud-based software. As the web becomes a safer business environment, more and more entrepreneurs rely on such software to avoid bearing the storage cost.
- Free accounting software: Another popular type among small businesses are the free programs available. Such solutions offer basic features like creating invoices, managing limited customer accounts, printing checks, etc.
Which of these types of accounting software is ideal for you depends on your business size and accounting needs. For instance, while some businesses may only need help with their bookkeeping, others might wish to automate payroll. For these distinctive needs, you need different types of software. For better management with your account projects, check out our article on the accounts receivable dashboard template and learn to maintain your accounting in an appropriate way.
- Consider the usability factors
Once you have decided on the type of software you require, you will still have a lot of options to sift through, albeit fewer than before! To further filter them out, decide where and how you wish to use the accounting software.
Here are some usability factors worth considering:
- Multiuser access: Most accounting processes require the input of multiple people. Hence, your software should allow multiuser access. While some do so for no additional cost, others charge a price depending on the number of people that access the system.
- Multi-business support: Does your parent company branch out into various smaller companies? If so, you need accounting software that supports multiple businesses at once. There is certain accounting software that does so.
- Mobile access: According to Sage, 67 percent of accountants prefer cloud-based accounting. In today’s digitalized world, people often access information on the go. While some software may allow you to do so, others don’t. Additionally, mobile app support differs. Choose one compatible with your devices (i.e., phones, tablets, smartwatches, etc.).
- Interface: Depending on your team’s expertise, you must select software that offers the steepest learning curve. The last thing you would want to do is get stuck with complex software to understand.
Just like in software options, your usability needs will also be unique to your business and team. Hence, considering these factors and any other you deem necessary will help you decide which software is right for you.
- Weigh in your budgetary constraints
Every decision in a business is capped by a maximum expense that you can assign to it. After all, if you begin spending money without coming up with a budget for different expenditures, you won’t be able to track your cash flow.
Now, budgetary constraints will also vary depending on the size and health of your business. For instance, if you are just starting out and barely have any money to spare, you might like off-the-shelf software that is either free or charge a minimal fee.
However, if you are on your growth journey, you might want to invest in an industry-specific solution. Such software is often called vertical software and tends to be pricey.
Remember that integrating software isn’t a one-time cost. Instead, you must pay for it periodically. Hence, only opt for a solution you feel comfortable paying for, for the foreseeable future. Therefore, first, analyze your financial health and the maximum value you can spend on the task.
Then, see which options you have available within your budget. If your usability factors and accounting needs are not matched within your budget, see which of these needs you can forgo and which are essential for the success of your business. Alter your budget accordingly.
- Talk to your team
Finally, before integrating any accounting software into your business, have a discussion with your team. After all, your team has to work with the software, and hence they should be comfortable with it.
Not to mention that accounting experts will be better able to guide you about which software is ideal for operations. Apart from your accounting team, also consult your IT department. This will help you understand any hardware requirements of the accounting software.
Without the right hardware, you won’t be able to utilize the software to the fullest. So, see if you can afford to provide the type of hardware required.
Ending Remarks
With these four simple steps, you are ready to select the right accounting software for your business! Go ahead and check this task off your list and focus on other aspects of your business!
