Choosing the right accounting software is essential for smoother business operations. Digital platforms, which you can use in-house or through an online accounting service using live bookkeepers, have features to handle a multitude of bookkeeping tasks, enabling you to manage budgets, monitor cash flows, and prepare for tax time and audits more confidently.
The ideal solution should seamlessly integrate into your organization’s workflows. It will deliver real-time insights and minimize manual errors. But how do you select the right accounting software for your small business? This guide has you covered. Read on as we explore the key features to consider.
Assessing Business Requirements
The first step in choosing a web-based platform is identifying your bookkeeping needs based on your company’s size and industry-specific requirements. Assess the size of your organization: smaller enterprises might need simpler, more intuitive systems, while larger companies require platforms capable of handling high transaction volumes and complex financial structures.
Industry-specific capabilities may also influence your choice. For instance, a manufacturing firm may require order tracking and purchase order management, while a construction company may need job costing reports.
Key Features to Consider
Your software should support your accounting and bookkeeping service requirements and offer scalability and flexibility as your business grows. Here’s a brief overview of the essential features you may need:
- General ledger. Records and categorizes all your transactions, laying the groundwork for a solid, easy-to-manage accounting system.
- Invoicing. Enables the efficient generation and distribution of invoices, a critical aspect of revenue management.
- Expense tracking. Allows you to document and analyze your company’s expenses, making it a breeze to manage your budget and plan your finances.
- Tax deductions. Identifies potential deductions, ensuring you’re not overpaying on taxes.
- Sales and sales taxes. Effectively handles sales records and precisely computes sales taxes. Advanced functionalities can manage this data for companies with a sales presence in multiple locations.
- Sales channel connectivity. Ranges from single-channel to unlimited integrations for expanding your sales platforms.
- Multiple user access. Permits access for multiple team members, ideal for growing ventures with expanding accounting teams.
- Inventory management. Monitors inventory levels and values for physical products in a company’s online and brick-and-mortar locations.
- Financial planning. Ideal for organizations interested in long-term growth, this assists with forecasting and strategizing for future financial goals.
- Bill management. Streamlines the process of managing payables, ensuring timely payments and financial order.
Integration Capabilities
When searching for the right accounting solution, prioritize those with strong integration capabilities. You’ll want to select a system that effortlessly syncs with your other essential business tools and systems, such as your CRM, payroll, or project management platforms. This can include popular systems like:
Seamless integration streamlines processes, eliminating the need for manual data transfer and reducing the risk of errors. It ensures that your financial data is consistent across all platforms for a cohesive and efficient business environment.
User-Friendly Interface and Accessibility
When selecting a platform, assess its user-friendliness and accessibility. An intuitive design is crucial for ease of use, enabling users to navigate the system efficiently without extensive training. This speeds up the onboarding process for new staff and improves downtime when transitioning.
The platform should also offer cloud-based access and mobile compatibility to support remote work environments. This ensures that your team can manage financial tasks and access important data from any location for better collaboration and continuity.
Security and Compliance
Choosing an accounting solution demands a strong emphasis on security and compliance. Essential security features include advanced data encryption, secure web-based storage facilities, and two-factor authentication. These measures ensure your financial data remains protected from unauthorized access.
The program should adhere to financial reporting standards like the General Accepted Accounting Principles (GAAP) and meet legal requirements like the Sarbanes-Oxley Act for financial disclosures.
Cost Considerations
Besides bookkeeping capabilities, costs are one of the most important aspects to consider when choosing software for your organization. Most modern money management solutions today use the software-as-a-service (SaaS) model, which involves two types of expenses: upfront and recurring.
- Upfront costs. Like most traditionally-priced programs, typical accounting programs are paid software, requiring you to make a purchase to access its functions. Price points and packages may vary depending on the features offered.
- Recurring costs. Most bookkeeping applications today, operating as Software-as-a-Service (SaaS), adopt a monthly subscription pricing model. This means you’ll need to pay a regular monthly fee to access the full functionality of the application. Additionally, if you require features that are not included in the main package, you can usually add them for extra fees.
When assessing a particular software’s potential return on investment (ROI), it’s essential to evaluate its time-saving and efficiency-boosting advantages. The best solution should allow customization to meet your specific needs, but you’ll also want to consider future scalability and the ability to adapt as your organization expands and evolves.
Customer Support and Training
While they may perform similar tasks, each solution uses a different layout, interface, and terminology. Adapting your workflow to its specifics can take time, making access to helpful support critical.
Ensure the solution you choose provides easily accessible manuals, FAQs, tutorials, and other resources on how to use all the tools and functions. Check whether the developers offer training programs, community support forums, or webinars, especially if you need to train multiple staff members.
If you need help with the application or service, check for support channels, such as live chat, support boards, ticket systems, email, or telephone. Evaluate the average response time and look for additional conveniences, such as 24/7 or multilingual support, to help resolve your queries more quickly.
Reviews and Recommendations
Reviews and recommendations can influence your choice of software. Five-star ratings and customer testimonials provide insight into users’ experiences with the product, both good and bad. Reviews offer valuable information regarding a program’s capabilities, ease of use, customer support, and quality of training materials.
When evaluating reviews, look for detailed opinions from similar companies, such as those in the same industry or similarly-sized organizations. You may be able to determine the platform’s performance in niche areas, such as multiple currency tracking or employee expenses. These testimonials can enhance your understanding of its practicality in more complex scenarios.
Find the Ideal Accounting Platform for Your Small Business
When shopping for accounting software, take a holistic view of each product. Compare features, scalability, integration capabilities, and how each meets your organization’s specific requirements. While it can take time to determine which platform will best support your small business’s bookkeeping needs, it will be well worth it once you leverage the bottom-line benefits of its robust functionality and services.
