Choosing right accounting software is time consuming. To make it easier and fast, I have written the post about how to choose accounting software for your business. It is step by step guide covering process of choosing software to implementing the same.
How to choose accounting software for your business:7 simple workable tips:
Know your current business activities and anticipate future:
It is easy to get attracted by lower pricing of any software but you should think for long run. First, write down summary about your business and daily activities. Anticipate future growth and new business venture or expansion of business. Emancipate annual turnover, annual invoices, sales, bills, no. of employees, for 5 years. Write down day to day business activities and their nature.
Understand your needs and required features :
Based on your business nature, anticipate required features in business accounting software.
There are general features which are required to every business.
- Cloud based accounting
- Customize bills
- Online invoice sending and accepting online payment
- Financial reporting including easy dashboard showing profit and loss account, balance sheet, payables, receivables, overdue, ageing summary, general ledgers etc.
- Online synchronization of bank statements
- Facility to integrate with paypal, payroll, time tracking apps, inventory apps.
- Andorid and IOS available apps.
- Payroll feature
- Client dashboard
Additionally, you can write down additional features based on your business types and write it down.
There are various software which are very popular and easy to use. Quickbooks, Xero, MYOB, Freshbooks, Zoho books are among st them. You can access comparison of all of them in this post. Note that we do not recommend any product based on affiliate commission. We are recommending as per our and our clients experience with the software.
Cost benefit – analysis:
Most of the soft wares are charging on monthly basis. It ranges from $9 to $50 per month. We do not recommend Free software much but you can choose it if you have limited business transactions per month and tight budget. In stead of considering pricing too much, it is better to emphasis on features, support and learning centers as shifting from one software to another is time consuming and cumbersome. While doing analysis, contact software support for any doubt or query regarding features or pricing. All software providers are giving trial periods so that you can use and get familiar with software features.
Discuss with your team:
If you have team of accountants, discuss with them about software purchase. You can hire bookkeeper on hourly or monthly basis from Finsprout. While choosing software, try to choose the software with video tutorials and week days support ( Email or phone). Do not choose too much complicated software that you and your team do not understand how to use. In stead, go with simple one and easy to learn software.
Purchase and implement:
Before purchasing use trial for 5-6 days and check features of software. Purchase the software and import all the past data in new software. Use video tutorial or choose professional service to import the data. It is advisable to change software after year end. So that import will be easier.
Create the system:
After implementation, create the system showing processes and accountability of data input. You can also prepare weekly and monthly calendar showing schedules of activities such as reconciliation, periodical reporting to management, cash flow forecasting, periodical sending ledgers to customers and suppliers, stock taking, tax compliance activities, payroll run etc.
How can we help you?
We at Finsprout can help you in following:
- Choosing right accounting software
- Importation of data
- Training on software use
- System creation for your accounting
- Monthly / Annual / Hour based bookkeeping help
- Payroll run
- US, UK, NZ, Australian and other 9 countries taxes.
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