Accounting is the lifeline of any business and it deals with summarizing, analyzing and reporting of the financial data as well as information about the business. The traditional role that accountants used to play in a business as changed with the advancement in technology. Today, there are accounting software which are doing an exemplary job in managing all the accounting of a business. It has a lot of advantages over manual accounting in that it consumes very little time and less prone to human error.
When it comes to accounting software’s the level of error are reduced significantly. The online kind of errors you will find in a computer are either programming errors, input errors or any other human related errors. For this reason accounting software’s are recommend for use in businesses. There are plenty of accounting software’s out there and finding the right one for your business can be a great challenge.
Accounting softwares are usually categorized into several modules based on their functions. The different functions include general ledger that takes care of the financial dealings of a company. Another function is the payable that is used to enter bills and paying money owed and lastly receivable accounts that receives the money entered.
The different categories of accounting software include small business accounting software which are rather simple and inexpensive and are mostly used by home users to manage small budgets. There are low end accounting softwares that are suited for small business that tend to serve a single national market. Mid-market accounting softwares are meant for businesses that serve multiple national accountancy standards as well as facilitating multiple currencies. High end accounting software’s on the other hand are specifically meant for complex and expensive accounting needs. They are sometimes known as Enterprise resource Planning.
Identify your needs
When it comes to shopping for accounting software, it is very important that you identify the factors that you need. It’s just the same principle as buying a car, it makes no sense buying a Ferrari just for going shopping. If your goal is to record your income as well as expenditure along with your profit and losses then the package that you require is fairly basic and you can acquire it at a relatively low cost. In case you are running a big business where you need to track your finances and expenses then you need to do a lot more than that. There are software which are customized for specific industries for instance construction industry, finance or even real estate.
Brand and other additional features
The brand or manufacturer of the software is another important factor that you need to consider. One thing you will find very common is that the big brands will fetch high market prices. As much as brands that have a good reputation tend to have the best products in the market, it is recommended that you get to know the features that you need in an accounting software. Find out if the customer support is reliable and whether you can use a free trial before you commit to any payments. There are also other additional requirements which you need to consider such as the hardware requirements. Some software will require you to invest heavily on your hardware while there are others that are lighter which you can use even on your portable electronic device.
Online accounting software
Online accounting software is a new trend that is replacing the traditional accounting techniques. Online accounting software’s have made it easier for businesses to keep their company in good shape. The cost of running an online accounting software is one of the reasons why most businesses prefer to manage their finances online. Online accounting software’s charge on a monthly basis and depending on your financial capabilities you are able to get the package that suits your budget.
The advantage of having a software manage your accounting needs as opposed to hiring an accountant is the aspect of saving time and money. An accounting software will work 24 hours a day every day and will be giving you information in real time. An accountant on the other hand will be working on a scheduled time. The rigid nature of an accountant can be costly for a business especially when you have a deadline and it’s off working hours. You will find an accountant, but you will be charged for working off hours.
In summary, getting an accounting software for your business is the best decision that you will ever make. As mentioned above there are a lot of advantages with using an accounting software as opposed to hiring an accountant. In terms of confidentiality, an accounting software will keep all information regarding your business confidential as opposed to sharing with a third party that is an accountant.