Keeping “the books” for a business used to be a paper-based operation that used a ledger, a lot of columns, and a pencil to record a company’s vital financial data. However, today, even the smallest firm can profit from various small business accounting software programs.
Accounting software helps you reduce human errors in your calculations and gain financial insights into your business. You wouldn’t be able to achieve financial insights quickly on paper, such as generating sales forecasts for the next quarter, identifying overstocked items, tracking invoices, and pinpointing your least profitable service.
The Global Accounting Software Market size was valued at US$ 11,071.6 Mn in 2018 and is anticipated to reach a whopping value of US$ 20,408 Mn by 2026 – Fortune Business Insights
As a small or medium-sized business owner, your main objective is to check your inflow and outflow of money; and that is why having accounting software is so important. In addition, you’ll need a program that will assist you in recording payments, tracking expenses, invoicing customers, and reconciling transactions daily.
But selecting the right accounting software is in itself a challenging task. So, we have listed below some pointers to consider before choosing the one for your small business:
Before starting on your decision-making adventure, it’s a good idea to figure out your budget. Most organizations offer several pricing options to support enterprises of varying sizes.
Some price structures are based on flat monthly costs, while others on the number of users. Choose the software that falls within your budget.
Accounting software is not all the same, and although some platforms have a broader scope, others are custom-made to meet the demands of a given industry. For example, a retail shopkeeper may have a different software compared to a marketing or tax consultant.
Look for software that can handle your primary needs; this will save you the trouble of adapting a generic platform to meet your specific requirements.
If you’re the only one using the software, search for platforms that provide the most streamlined experience. Look for a more comprehensive solution if you need software to simultaneously handle multiple team members and an accountant. SaaS applications like GetMyInvoices offer flexibility and are a popular choice.
Prioritize this feature if you need restricted user access so that not everyone in your firm has access to your finances. For example, some platforms allow different team members to have access based on their roles.
Maybe you’re a freelancer who needs to charge clients for your side business. In that situation, choose an option that provides all of the features you require at the lowest possible cost.
If you plan to scale your business and want your software to keep up with you, ensure the platform can handle your future requirements. Investigate these unique solutions to see if they will help you scale or if they will hold you back.
The majority of software nowadays is designed to be very user-friendly. Some platforms focus on professionals in the accounting field. Others focus on those who have no prior experience. But, of course, you already know which category you belong to, so choose wisely.
If your company works in multiple countries or services a multilingual community, you’ll need a platform that includes these characteristics. You’ll be able to tailor your invoices and payment options accordingly.
Check if the software takes proper security precautions to secure your and your client’s information. Pre-requisites should include two-factor authentication and data encryption.
Invoicing and billing, accounts receivable and payable, bank reconciliation, tax compliance, and reporting are all part of accounting. It can be challenging to get everything right, but your company’s workflow will get optimized, and efficiency will increase with the right accounting software. Modern invoice management applications can download invoices automatically from various online portals, saving time and effort of accounting teams.
Evaluate your accounting requirements in detail, prioritize features based on those requirements and special accounting software that includes the functionality you need for the best accounting experience.
See the benefits of automated invoice management:
Better overview. Less accounting work. More time for your ideas.