We may still call the practice of managing business finances “bookkeeping” — a homage to the era when it was done by hand with pencil and paper — but nowadays accounting software has made the process faster, easier and more accurate. This is good news for busy entrepreneurs who want to spend less time and effort without letting any important details slip through the cracks.
There’s no shortage of small business accounting software out there. So, how can you choose the “right” option for your company? Here’s more on what to look for when picking out accounting software for your fledgling operation.
What Accounting Tools Does Your Small Business Need?
The first step is always asking: What do we really need? It’s important to consider this question in terms of where your business stands today and where you aim to be months and years down the road.
As one expert recommends for Inc., you can take these needs and create a “wish list” of features you’d ideally like to find in a software product. While you may not find every product on your list, this way you’re ensuring that you select software capable of satisfying your company’s demands. Here are some common small business accounting technology features you’ll find on the market:
- Employee payroll
- Billing and payments
- Tax reporting
- Budgeting
- Sales tracking
- Inventory management
- Customer Relationship Management (CRM)
- Enterprise Resource Planning (ERP)
Half the battle when it comes to choosing the right accounting software for small business is prioritizing the features most important to your company’s needs — based on your industry, niche, size and budget. If you’re considering a comprehensive solution like NetSuite for your business, consider availing of NetSuite Evaluation Consulting to ensure that it’s the right fit and is optimally configured for your unique requirements.
Other Questions to Ask When Choosing SMB Accounting Software
You’ve now considered which features are most crucial to your company’s operations. Here are some other questions worth asking before you make your final decision, according to The Balance:
- Is the software scalable? If your company grows immensely in the next six months or one year, will the software be able to accommodate your changing needs? The ability to add on features as you go is particularly important here.
- Can this software integrate with your accounts and platforms? You need accounting software that can seamlessly integrate with your existing systems, including your website and bank accounts.
- Can you control user access? If you’re a sole proprietor, you may be the only person working on the books. If you add employees, you may need the ability to set permissions based on which users need access to which tools. The more flexibility here, the less headache — and the fewer potential data privacy issues — you’ll encounter as you grow your workforce.
- Can you try the software first? Look into whether you’re able to get a complimentary trial before you have to invest in a certain accounting tool. It’s like test-driving a car; no matter how shiny and tempting the car looks on the lot, it’s not until you get behind the wheel that you really understand how it runs.
Last but not least, your budget will have the ultimate say in which small business accounting software you end up selecting. It’s generally a good rule of thumb to choose the most cost-effective option you can while still ensuring your company has access to the accounting features it needs. As appealing as all the high-tech extras may seem, it’s ultimately not worth paying for extraneous features. Shop with your company’s current needs in mind with an eye on the short term. You can always upgrade your software or even implement a new system down the road.