According to Matt Davies Stockton, good accounting software is an essential tool to track your business expenses, profits, and other such data. It organizes all that data and a central location and makes your financial tasks more efficient. Let’s check out what to consider when looking for accounting software.
- Scope of the software – The first thing that you need to look out for in accounting software is its scope. Check out all the primary tasks that can be performed by the software and how many are useful for your business. You should also make a list of other functions you may need in the future as your business grows and make sure that the software provides those functions.
For instance, as your business is small and you keep track of all the inventory in your apartment room, you may need the software to take over as your business and inventory grows. Assess both your present and future needs and make sure that the software is future-proofed. The accounting software should also come from a company that has a reputation for providing enhancements, bug fixes, and quick troubleshooting.
- Cloud hosting – You should never opt for desktop-based accounting solutions since they will always be limited by the hardware. On the other hand, accounting software that’s hosted on the cloud is managed by the software company and it is automatically adjusted according to your growing needs.
Moreover, cloud-hosted accounting software isn’t vulnerable to cyber threats or accidents that may happen at your business. Your finances are always recorded, and tracked, and stay safe in the cloud. Moreover, you can access cloud-hosted accounting software and check your finances even while you’re traveling.
- Training – Before you invest in accounting software, make sure that you understand its complexity and the amount of time you’ll need to spend training your employees with the software. Even if an accounting software has a ton of amazing features, it’s not going to be helpful if operating it requires you to learn everything from scratch. Your employees would not be very efficient if they spend a lot of time getting used to the software either.
- Cost and support – Cost is also a big factor when choosing accounting software. All cloud-hosted accounting solutions come with a subscription model and the prices typically range between $10 to $100 per month. They also offer discounts on annual subscriptions. Make sure your business operations can sustain that cost.
Apart from that, you’ll also need to check if the accounting software comes with good after-sales service and support. No matter how proficient you are, you’ll need IT assistance at some point. That’s why you should use the software throughout its trial period and check the support provided by the software company.
Matt Davies Stockton suggests that you use the above-mentioned criteria to carefully assess all your options and choose accounting software that suits your needs. Good accounting software shouldn’t just track and organize your finances, but also provide you valuable insights regarding the same.