Picking the small business accounting software you will use for your business can be a big decision. Once you select a software program it can be very difficult and costly to switch systems later if you are unhappy with your selection. That is why it is a good idea to thoroughly review all of your options before making the decision for your small business.
Some of the key factors that should be reviewed when selecting a small business accounting software program for your small business are
In more detail here is what you should be looking for in each of the above key factors:
1./Cost – Compare the costs all the various programs you are considering. Ensure to take into account if the program cost is a one time payment or an on going monthly fee. On going monthly fee programs can sometimes be very expensive if you need to pay the monthly fee for as long as you use the small business accounting software program. Cost is not the only factor though, weight the other features of the programs against their cost as it might make sense to pay a little more for an accounting software program that has more features, is easier to use or is just more flexible.
2./Learning curve – Take into account how long it is going to take you to learn the system. If an accounting program will take days or weeks to learn there is significant cost to your business by selecting a small business accounting software program of that nature. There is a lot of value in having a system that can be learned quickly by yourself or future employees.
3./Input efficiency – Take into account how long it will take to make journal entries and run reports. If with one accounting system you will be able to enter twice as many accounting entries per hour versus another program, definitely choose the program that is quicker to work with. The less time you spend entering your accounting transactions the more time you have to run your business and make more money.
4./Reporting capabilities – One of the key differentiators between small business accounting software programs is the reporting features available within a given system. Reporting on your financial results is critical to managing your business that is why you need to make sure the program you purchase can easily deliver the reports you need.
Many accounting programs have set reports that can not be modified. If you are considering a software system of this nature it is critical you ensure the standard reports can not be customized to include the information you want and need.
5./Flexibility – Finally the fifth factor to consider when selecting a small business accounting software program is the flexibility of the program. Flexibility includes the ease at which the necessary information can be extracted from the system. It also includes how easy it is to make correcting entries or the ability to transfer the program from one computer to another. The last thing you want to have happen is have all of your accounting information locked into your small business accounting software program but not be able to access or modify it in the way you want.
When making your final decision on the small business accounting software you will choose you should weight how each option you are reviewing compares on all 5 of these factors and also determine which of the 5 factors is most important to your particular business and situation.
Only you know what your small business accounting software program needs to be able to do. If you follow this process you will make a smart informed decision that will result in the selection of a small business accounting software program that is right for your business.
Kilcoyne Accountants provides accounting services to businesses to manage their business efficiently without any hassles. To know more about how Kilcoyne Accountants can help you run your business more effectively and maximise your profits click here to contact our friendly team of accounting professionals.