Point to Note when Choosing an Accounting Software
Accounting software helps businesses manage and carry out finance-related roles. Finance related roles that an accounting software can handle includes payroll computation, sales reporting and invoicing, amongst several other tasks. There are several accounting software on the market today and companies can choose what suits them most. Here are some factors to bear in mind when looking for an accounting software.
First, understand the roles undertaken in the finance department and all departments that require the software. What are the expectations of the company in regards to the functions the accounting software will be performing. List all the solutions the software will offer to the company. Listing of all expected solutions helps the company decide whether to go for an off-shelf software or bespoke accounting software.
Bear in mind the possibility of expanding the business when looking for the best accounting software. The accounting software should, therefore, allow for future expansion. The software should allow for an addition of the number of clients and roles of the users.
Look at the number of users the system will accommodate at a time. There are systems that do not allow the users to perform the same task at the same time. Will the system allow for an increase in the number of users in future?? The data stored in the database should be accurate and consistent.
Consider the cost of the accounting system in regards to the functions that the accounting software is expected to perform. Analyse what the total cost will cater for. Some of the aspects the cost charged should cover are the software, the installation, training, and maintenance costs. Licenses for most accounting software are renewed annually at a specified fee. Consider the site where the software will be installed and the data hosted. If the company intends to save on costs, they can have the software installed off-site and data hosted on cloud. However, corporates companies who can afford to cater for all costs can have the software installed on their servers.
Consider the ease of using the software. Different accounting software require different accounting skills to use. After installation and implementation, the vendor or developer should offer adequate training to all users on how to use the system.
The user should be versatile enough to give customized reports as per the users requests. The system should allow the user incorporate functions systematically, e.g. tax computation and returns filling after successful running of the payroll, and several other functions. A good accounting software should keep a record of all companies’ inventory.