There’re two main reasons for getting the software: cut cost and/or your business is getting too complex for your current system. The good news is that, you don’t need a lot to start using software. The most basic pack could come from USD$4.99 to USD$15 per month. In fact, you can look for accounting software free download.
Whether you’re a sole proprietor or expanding your business, accounting software is necessary. Getting one helps you to file for taxes – a good enough reason to get one! It’s hard to advise you on how much to spend as each business is complex and unique. But answering the question below will help you decide what your business need.
Number of Invoices
Most accounting software offers to send invoices: the first five for free at least. Some offer unlimited invoices, even in their most basic pack. Perhaps, this is an important feature of your business. For example, an SEO-editing start-up may only have five clients each month. But a retail e-commerce business may have many more customers who don’t even use invoicing.
Number of Users
How many users will be using the accounting software? For example, a fashion brick-and-mortar retailer would need to count the merchandiser, storekeeper and warehouse supervisor as the user. At the very least, your accounts need to give access to you and your accountant. Most software offers multiple users with one step higher than their most basic pack – at an average of USD20 difference.
Number of Customers
In any given month, you may have five clients to over 1,000 customers. Check your monthly records and determine which software offers you your number of customers. Tracking each customer by the serial number allows you to identify high-spending customers that you can target for membership or as brand ambassadors.
Manage and Pay Bills
This feature may not be available on the most basic accounting software pack. But it is available in most of the higher packs of only USD$20 difference on average per month. If you’re handling multiple suppliers with different T&C for payment, getting this feature saves you the headache of remembering to pay. Say goodbye to penalty fees.
Modes of Transaction
Many of this accounting software offers at least 20 reconciliations with your bank. With just a few minutes, you get to match your internal cash account records with your bank statements. So, you can make sure the amounts for both are consistent, accurate and complete. This comes in handy, especially when you’ve multiple online or credit card transactions a day like in e-commerce. Tracking it daily allows you to catch discrepancies immediately.
Syncing of Other Apps
So, what if your accounting software provides 80% of what you need? No worries, a lot of them allow the addition of extra services as well. Just make sure the one you choose allows your required integration. It could be check printing, Salesforce, credit card payments, point-of-sales system, e-commerce, inventory management, document management, lead tracking and more. Some offer to over 100 apps you can integrate.
Transact in Multiple Currencies
Do you get your products from other countries and sell your products to other countries? If yes, get software that allows you to transact in multiple currencies.
Before getting an accounting software, get your accountant or tax agency to advise you on what accounts or records you need for your business to maximise tax returns. Maybe learning the first few weeks would take time. However, knowing your numbers at your fingertips will give you such tangible security and confidence. It also sets up the structure to upscale your business with a realistic projection and time frame.