As a small business owner, you need to keep track of your finances, manage your taxes, and generate reports for your stakeholders. Accounting software can help you automate and streamline these tasks, saving you time and money. But how do you choose the right accounting software for your needs? Here are some factors to consider.
One of the first things to consider is how much you can afford to spend on accounting software. There are various options available, from free or low-cost solutions to premium or customized ones. Depending on your budget, you may have to compromise on some features, such as the number of users, transactions, integrations, or support. You should prioritize the features that are essential for your business, such as invoicing, payroll, inventory, or reporting. You can also look for software that offers a free trial or a money-back guarantee, so you can test it before committing.
Another factor to consider is how easy it is to use and learn the accounting software. You don't want to waste time or money on training or troubleshooting. You should look for software that has a user-friendly interface, clear instructions, and helpful tutorials. You should also check the reviews and ratings of other users, especially those in your industry or niche. Additionally, you should think about how scalable the software is, meaning how well it can adapt to your changing needs as your business grows. You should look for software that allows you to upgrade or downgrade your plan, add or remove features, and integrate with other tools.
A third factor to consider is how secure and compliant the accounting software is. You want to protect your sensitive data and avoid any legal or financial risks. You should look for software that has encryption, backup, and recovery features, as well as access control and audit trails. You should also check the software's compliance with the relevant accounting standards and regulations, such as GAAP, IFRS, or IRS. You should also verify the software's location and jurisdiction, as this may affect your tax obligations and data privacy.
A fourth factor to consider is how reliable and responsive the accounting software's support and updates are. You want to have access to help and guidance whenever you encounter any issues or questions. You should look for software that has multiple channels of support, such as phone, email, chat, or forums. You should also check the software's availability and uptime, as well as its frequency and quality of updates. You should look for software that has regular and automatic updates, as well as feedback mechanisms and bug fixes.
A fifth factor to consider is what other people say about the accounting software. You want to have an objective and unbiased opinion of the software's performance and reputation. You should look for reviews and recommendations from various sources, such as online platforms, industry experts, or peers. You should also compare and contrast different software options, using criteria such as features, pricing, usability, security, or support. You should look for software that has positive and consistent reviews and recommendations, as well as a loyal and satisfied customer base.
Once you have adjusted your budget, considered ease of use, ensured reliability and safety, listened to peer feedback on performance, the most important thing is your own opinion. Try it out, the way it fits your preferences and needs is crucial in the choice because you are the user. If you don't feel comfortable and your expectations aren't met, discard it and try other software that suits you better.
A final factor to consider is your own experience and preference. You want to find the accounting software that fits your needs and expectations. You should try out different software options, using their free trials or demos, and evaluate their pros and cons. You should also ask for feedback from your staff, clients, or partners, as they may have different perspectives or insights. You should look for software that meets your requirements and goals, as well as your style and personality.
Stay away from online subscription based systems and get their desktop versions that way you control your data. Quickbooks desktop is very user friendly and easy to use. Yet online version is terrible and forces you into a model that doesn’t allow transfer back to desktop, only a one way street. Why? To drive that recurring revenue model.
Reach out to similar businesses in the same industry. Ask them what they use and what they like or don't like about it. Consult with a CPA firm and ask them what their clients use and what they recommend. Find something that can grow with you. If all else fails, hire a CPA to do your books and taxes.