What is Accounting Software?
If you are thinking of streamlining your books, you should not hurry. There are a few factors to consider in choosing an accounting software for small business. If you are the first-time buyer of an accounting system, you should not ignore these essential tips. They will only enhance your experience and your choice of business software.
Accounting software is a program dedicated to streamlining accounting processes such as:
- General Ledger
- Bank Reconciliations
- Accounts Payable
- Accounts Receivable
- And more!
There are also various types of bookkeeping software such as small business, budgeting, church, cloud and more. The idea is to invest in the program that best aligns with your company’s goals.
There are several considerations to ask before you begin your software selection quest.
How Big is your Company?
The size of the company matters when choosing a new application. Most providers offer plans that are not one-size-fits-all, but rather plans for specific business sizes, such as small, medium, and large businesses. How big is your company now? Most plans scale with your organization as you add more staff and resources. Do you want to grow, shrink or stay the same over the next five years? If you’re a freelancer or a small corner store, you don’t need an enterprise-level platform. Likewise, if your business is becoming a global phenomenon with Apple, Microsoft, and Amazon, you don’t need a mid-sized program
Which Deployment Option is Best?
Are you interested in on-premises, cloud or a hybrid of the two? On-Premise allows users to access programs on company computer servers in one location. This option is ideal for small businesses with local partners and stakeholders. Cloud deployment allows you to store software and information on the provider’s servers. You can access solutions and company data anytime, anywhere on your mobile device. This option is ideal if you have regional or global facilities, partners, stakeholders, etc., allowing you to access real-time data via a strong internet connection. On-premises solutions typically use license fees, while cloud programs offer reasonable subscription fees. Your best bet is to ask the vendor for total cost of ownership (TCO), pricing, and more when narrowing down your options.
How Big is your Budget?
Establish a budget early. These programs run anywhere from a few hundred dollars to $100,000, if not more. Know how much you’re willing to spend and stick to that budget. You don’t want to spend an arm or a leg on a solution and not see it garner a return on investment (ROI).