6 Tips On How to Choose the Right Accounting Software

Whether start-ups, SBMs, or large business houses, all types and sizes of businesses need an efficient accounting solution in this digital age. Even if you’ve just bought a new business with the help of an organisation like Poe Group Advisors, you’re still going to need accounting software.

In fact, you’re probably going to need accounting software the most. Accounting software not only reduces your efforts significantly but also helps in the optimum management of your financial data.

But with such a vast range of accounting software solutions available in the market, it is a difficult task to choose the right software for handling the accounting tasks for your business.

Moreover, the introduction of advanced technologies like the cloud has opened a new avenue of new-gen accounting solutions. 

Here are some aspects you can take into consideration while choosing accounting software for your business.

1) Make A List of Features 

Choosing any software depends on the functionalities you want for your process and the ability of the software to offer the same. The same scenario applies in the case of accounting software. There are various accounting software solutions available in the market. You need to go for the one that satisfies all your accounting needs. 

However, to do so, you need to analyse your accounting process carefully. Make a list of all the functions that your business process demands and then go looking for an accounting software solution.

An accounting software product can comprise of multiple features like expense tracking, invoice creation, account, reconciliation, and custom reporting, among others. However, if you do not require all the features, there is no use of wasting your money on a high-end software product.  

Do you need a payroll feature in your accounting software? Or are you using any third-party application for it? What about automated billing and payments option? 

These are the types of questions you need to ask before choosing accounting software.  

2) Analyse Your Budget

You cannot ignore the budget constraint while running any business. There might be a software product that you have shortlisted for your accounting process based on its capabilities. But the real question is – can you afford it?

On the other hand, if you make the budget as your only priority, it may lead to the purchase of a below-par accounting solution, which you just can’t afford.

So, what is the solution? The word you are looking for is cost-efficient. You should look for an accounting solution that offers all the required functionalities within the budget defined. 

For this, the best way is to shortlist all the available accounting software on the basis of features. Then map them with the list of all the accounting software products in your budget. The accounting software making both the lists is the right accounting solution for you. 

However, you may need to be a bit flexible in your budget as well as the list of features.   

3) Get Advice from Your Accountant

It is essential to keep your accountant in the loop while deciding on an accounting software solution for your business. At the end of the day, your accountant is the one that takes care of your accounting needs and can tell you precisely what you need in accounting software.

Ask his or her opinion on the accounting software solutions that you have shortlisted. Also, ask about the accounting software being used currently and its limitations. Then, choose an accounting software solution that can overcome those limitations. 

4) See Its Compatibility with Add-Ons

No matter how advanced your accounting software is, you will always need some additional functionalities to accomplish your business operations. These functionalities are offered by various third-party applications called add-ons, that integrate with your accounting software. 

For instance, you could want the CRM or an e-commerce platform to integrate with your accounting software.

However, not all accounting software solutions facilitate integration with these add-ons. Hence, choose accounting software that integrates with multiple add-ons, each capable of carrying out multiple tasks. 

5) Check Out the Online Reviews

It is a digital world after all. Any information regarding accounting software can be found online. However, it is critical to view only relevant information from trusted websites. 

Nowadays, various online platforms give a review of the best accounting software depending on parameters such as functionality, support, ease-of-use, and value for money, among others. These platforms can be related to either accounting or technology.

You can get a good idea about the different accounting solutions and what the experts think about it. 

6) Get a Free Trial

Make it a priority to try the accounting software before choosing it. Almost all the major companies in the market offer a free trial of their accounting software. Getting a free trial of the product helps you analyse its performance and features and its compatibility with your accounting process.

You can visit the company website and opt for a free trial by filling in your personal information. For example, Intuit offers a 30-day trial for QuickBooks accounting software.

Choose Wisely

With so many aspects to take into consideration, it can be overwhelming to decide between the various accounting solutions. However, it is vital for you to clear your head and focus on what your accounting process demands.

Choosing the right accounting software takes away most of your stress related to accounting.