This is a question we are asked often and the response is always – it depends!!!
It depends on quite a number of different aspects and you may find it surprising that only one of them is price. Price should not be your deciding factor when choosing your accounting software. The main deciding factors should be around functionality and the different requirements of your business. Every business is unique so when it comes to accounting software one size definitely does not fit all.
It pays to keep in mind that one of the main reasons small businesses fail is due to poor cashflow so having up to date and accurate bookkeeping and data is imperative to keeping your business on track.
Here are my top tips to help you decide what software is right for you and your business.
Plan for the future – not just now
When choosing your accounting software, you should always be planning ahead with what your needs are going to be, not just what you need right now. Invest as much as you can in your software, setup and integration of Add-ons to give you the ability for growth and / or changes in the future. While you may not need software that can manage inventory (for example) right now, if you are planning to have inventory in the near future then your software should include this ability either within the software or as an Add-on.
Good software is an investment
There is a commonly held belief that buying software is an unnecessary expense. Quite the opposite is in fact the truth. Purchasing good software with the ability to scale and add in additional options will not only save you money in the long run but will enable you to grow and implement new systems with the minimum of disruption in the future.
What do I need?
Every business has different requirements so when choosing your software, you should consider the following:
- Do I need to manage stock, manage work in progress, track orders or jobs? If yes to this then next ask yourself what you want and need from this part of the business.
- Does the system need to handle foreign currency?
- Does the system need to track financial records for separate departments or divisions within the same business?
- Do you run POS (Point of Sale) software that should integrate with your accounting software?
- Does your system need to keep CRM (Client Relationship Management) system details around customer names, contact details, purchases etc?
- What parts of my accounting process can I automate e.g. purchase invoices into the accounting software automatically by using software such as ReceiptBank.
- What are your reporting requirements?
- Online or desktop based software – there are pros and cons to both?
- Do you want / need payroll integration with your accounting software?
- Do you want to outsource your bookkeeping, complete it yourself or run inhouse?
Get advice from experts
Unless you are an expert in this area I suggest talking to your bookkeeper or accountant about what software will be best for you. A good bookkeeper and accountant are your trusted advisers and will always have your best interests at heart – ask them for their opinion and also their help with ensuring your software is set up correctly.
Remember – one size does not fit all and it is important to get advice to help you on your path to success. If you would like to have an obligation free chat about what your best options are, please get in touch today by giving the team a call 04 2329199 or leave your details below and we will be in touch.