Whether you are a small business or large enterprise, accounting software is a technology that could really benefit your company. Before choosing a software, it is crucial to know the benefits of each of your options, and if there are any pitfalls to be aware of. Do complete research on the different softwares you are looking at in order to compare them and ultimately pick the most favorable for your company. Here are some important factors to keep in mind when comparing softwares.

Know Your Outcomes

First ask what your short term and immediate goals are. Do you need a way to make your invoices move through your systems quickly, or are you dealing with large scale transactions that need a specific document format? Secondly, define your long term goals. Sometimes, your long term goals and short term goals will line up. When they don’t, it’s time to take a look at what you’re doing and see where they can merge.

When in doubt, make sure that you’re meeting emergencies while planning for the future. If software lets you track your current expenses, for example, but doesn’t give you the advanced reporting you will want going forward, it could still be worth picking up for now and adjusting later on.

Referrals

Accounting is a crucial element of your business. If you don’t have your numbers right, you aren’t just dealing with lost profits or inaccurate reports. The IRS could come breathing down your neck and take away your ability to do business overnight if they find out you aren’t reporting your earnings or other numbers correctly. So why risk your company’s future on software that hasn’t been referred or proven by others to be good? Whether you need enterprise software for a mega corporation or bookkeeping for small business operations, ask around in the industry and see who other people are using. It is a way of vetting the tools instead of taking the risk yourself. Your wallet and your company will thank you.

Stability

If your software that you rely on for your accounting is not stable, it can spell disaster. You could be in the middle of doing taxes or defining assets within your company and all of the sudden your software crashes. This would be a nightmare for any company. Make sure your provider is incredibly stable.

In addition to mere stability and a great programming team behind them, ask them how long they have been in business. This won’t tell you the whole story, but it will lend some perspective. If they are a young startup company, it doesn’t mean they aren’t a better option than a company that has been around for 20 years. Usually, age means experience. However, sometimes a newer company works harder to give you extreme value because they have more to prove.

Pricing

Accounting is all about numbers. And while accounting software is tasked with dealing numbers that help you save money and make more money, it also needs to justify its own price. Sometimes, the more you pay the more value you get. This is not always the case, however. Be sure there aren’t extra features that you’re paying for even if you don’t use them. This could mean you’re lining the developer’s pocket without getting anything in return.

Flexibility

If the company you’re dealing with is flexible, they may help you create custom solutions. If they are rigid, it could spell problems later. Every business has specific situations that require extra care, so make sure they treat their customers like royalty. If it seems like they don’t, it could be time to start looking elsewhere for your accounting software needs.

When it comes to accounting software, there are a lot of moving parts. Every business is different. But no matter what business you run, it is crucial to weight the pros and cons of your software options. It will open the doors for you to get more done in less time than you ever thought possible before. Then, you can sit back and have peace of mind that your accounting software is exactly what you need it to be.

 

by: Mikkie Mills