Accounting software for your business
The term “accounting” means something different to each business owner, but mostly it carries negativity around compliance and tax which is something most business owners would rather live without. This misconception is a dangerous one as every business needs a good accounting system.
A good accounting system in a business can significantly improve operations, profitability and reduce costs associated with running the business. Most of all a good accounting system means a business owner has access to key information that can help them in running their business by allowing them to make the right decisions in a timely manner
The accounting system that a business needs will vary significantly depending on the complexity of the business, the people in the business and the size of the business so choosing the right one is critical. There are many accounting systems available – the challenge is to find the right accounting software to suit your specific requirements.
Choosing the right accounting system…
So how do you know what the right system is for you. Firstly you need to start at the end. This may sound strange but by understanding what you want from the system you can quickly determine what system is going to fit your business best. So firstly you need to work out what role the system is going to play in your business.
First things first: what should your accounting software do?
The following list provides the different role you might require from your accounting system, starting from the simplest to more complex.
- I just need it to create invoices, my accountant does the rest.
- I want to track my customers & sales, record my expenses and report on profitability
- I need my accounting system to track all areas of my business and give me regular reports on the status of my business
- The system will control the workflow, operational procedures and workings of the business. Without it the business will stop.
As you can see, different needs for different people. Making sure you know what role the system is meant to be playing in your business before you start looking.
Then, think about putting the building blocks in place for the future
The financial reports of a business will give you a snapshot of that business, so it makes sense that these are the foundations of your accounting system. However it is import to note that they don’t give you the whole picture. Remember the financial reports are produced at the end of a time period, so by there very nature they are backwards looking. So while they form the basis you also need to consider the role your accounting system will playing in help you plan for the future. Such tasks include:
- Budgeting & forecasting
- Future dated transactions
- Recurring transactions
- Creditors owing
All these things are about future events, so think about how or if you want your accounting system to manage this for you.
Now, get prepared for selecting the right software product
So far we have determined the role the accounting system will play in your business- we now understand that the basis of our accounting system is knowing our historical position as well as having a view of the future. But what next? The following list provides you with a quick checklist to help you better prepare for selecting the right product.
- Know your current products shortcomings, this is the reason you are looking for a new product so at a minimum you need these to be part of the solution
- Understand in detail what your product does and which features you use. If you don’t know, how will you know what to look for in the new product, the last thing you want is to lose the key features you utilise in your existing system.
- Get input from the key people in your business, they know what they need so ask them!
- Finally check with your key partners, these maybe your largest customers, suppliers or even stakeholders, what requirements do they have of your business.
Find the right accounting software for your business
There are so many choices when it comes to choosing the right accounting software, in fact so many choices that a lot of people give up on the process with an attitude of “better the devil you know”. It is a time consuming and tiring process to evaluate product especially when you have not been through the process before. But keep in mind the value to your business of getting the right solution.
Here are a few suggestions for how you can find the right software including (i) a few suggested online accounting options (ii) get a shortlist service (iii) accounting software directory.
Suggested Options
Below is a shortlist of online accounting software packages that are well worth considering:
Freshbooks
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Built for small business owners, Freshbooks started life as a popular online invoicing app but has since grown into a full cloud accounting solution. Used by 5 million people, it brings a simple and intuitive approach to online accounting. It includes online invoicing, time tracking, expense tracking as well as a good range of accounting features like online payments, multi-currency, recurring payments etc. Freshbook makes it easy to get key accounting reports like Balance Sheet, Profit & Loss, Sales Tax Reports, Aged Receivables, Sales by Item, etc. Take a free trial of Freshbooks |
KashFlow
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Kashflow provides provide online accounting software for small businesses owners, with an emphasis on ease of use, automation and integration. The UK-based Kashflow has grown based on listening to what their clients really want from an online accounting solution. Kashflow makes it easy to handle invoicing & quotes, manage customers & suppliers, record one-off and recurring purchases, control credit, review bank balances, and report on the performance of your business. Take a free trial of Kashflow. |
e-conomic
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Europe’s largest online accounting software provider, e-conomic serves over 60,000 customers from their HQ in Denmark. It includes all the core modules you expect — such as General Ledger, Accounts Payable, Accounts Receivable and Sales — as well as add-on modules including Stock Management, Subscriptions, Fixed Assets, Scanning, API, Project Management, and more. It also allows you to easily give your accountant access. Pricing starts from just $25 per month. Take a free trial of e-conomic. |
Get A Shortlist
If you have a first year budget of $10,000 or more for a core Accounting system and are ready to talk with relevant vendors, then why not accelerate your selection process by using our free Get A Shortlist service. Simply submit your requirements online (just put ERP), talk on the phone to one of our consultants, and we’ll introduce you to a shortlist of 3-5 highly relevant vendors who can assist with your specific needs. It’s a free and convenient service for businesses with $10k+ budgets for a new system. Submit your requirements now for a free shortlist
Accounting Software Directory
Check out an extensive list of accounting software options in our accounting software directory. It’s a good way to get up to speed with what’s available and quickly click through to vendor websites to find out more.
