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7
quick tips for choosing the package that's right for your business
When
it comes to choosing the best accounting or bookkeeping software for your
business, the good news is, you've got a lot of options. So how do you
decide which one will works best for you? The answer depends on your
business needs.
There
are two main types of accounting software: industry specific and generic.
While the industry specific options will offer more customizable features,
it's often more expensive to both purchase and obtain ongoing support.
Generic software generally offers the best option for entrepreneurs because
you're able to save money on the front end by buying a less-expensive
package as well as find less expensive, local, ongoing support to help you
customize it to meet your specific business needs.
To
help you choose the best accounting package for your business, here are a
few specific things you need to consider while you're doing your research:
The
size of your business. A business that generates $50,000 in sales each
year has very different needs than a multimillion-dollar business. If you're
a smaller firm, don’t overbuy when it comes to software because you'll
only get something more complicated than you need.
The
industry you're in. What industry is your business in? Some industries
have specialized software you may want to consider purchasing since it's
been designed with your specific needs in mind. Most of the time, industry
specific software will be more expensive, but the benefits may outweigh the
costs so be sure to do your research before buying anything.
The
components you need. What components do you want within the software?
Some software is very basic, having just simple checkbook features; others
include such modules as budgeting, invoicing, online banking interfaces,
credit card processing and so on.
Available
support. Purchasing the software is only the first step in the process.
It’s important that you have available support, which may include local
consultants, internet support, phone support, training options and more.
Financial
resources. What financial resources do you have for your investment in
the software? Every investment that you make in your business has a
cost-benefit analysis you need to consider. When researching the software
options available to you, consider which one offers the best fit for your
needs with the best dollar value.
Professional
recommendations. It's important that your accountant support your
software purchase as he or she will often be one of the resources you'll
rely on during the set-up of the program. In addition, your accountant
should confirm that they're able to rely upon the data that's being provided
by the software in order to prepare any reports or provide any information
you need.
Unfortunately,
there are some packages on the market that don't really function well from
an accounting perspective. What you might want to do is look for an
accountant who supports the software you've purchased so they're a better
fit for your business. Based on your situation; you can choose either the
professional or the software first and then search for the other part of the
equation. Either way is okay: The key thing is that both parts work well
together to contribute to the overall success of your business.
Ease
of use. When it comes to choosing software, this aspect is often
overlooked, but it's one that's extremely important to take into account. No
matter how great the software or how inexpensive, if it’s too cumbersome
or hard to learn, you won’t use it. So don’t go overboard by purchasing
a package that offers extra things your company doesn’t really need. Keep
it simple, stay focused on your business's needs, and look for those
programs that have easy interfaces and offer possible upgrades as your
business expands.
These
seven aspects should play a critical part in your research and purchase of
an accounting package for your business. Remember, it’s important that you
find the right tool to assist you in the management of your business, and
cost should not be the only critical factor you take into account. It's more
important to find the right fit based upon need of the business and ease of
use.
My
last piece of advice: It's easy to get frustrated with any new software
package, so be diligent about the implementation of it and know that
there'll be a learning curve. The benefit will be that you'll have an
organized financial system that can provide quality financial data for you
to utilize as you grow your business.
Pam
Newman is Entrepreneur.com's "Financial
Management" columnist and president of RPPC Inc., which helps
entrepreneurs succeed in their businesses through small-business training
and consulting services in the areas of accounting and management. She's
also author of Out
of the Red, a management accounting guide for small-business owners.
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