Companies needs accounting software to assist them in managing and handling finance-related tasks. This includes tax returns, invoicing, sales, payroll processing, and many other tasks. Today, companies can find several options of accounting software in the market, and only need to choose what works for them. 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 exactly does the company need the software to do? List all the solutions the software will offer to the company. This will help in determining whether the company will need a bespoke software or an off-shelf software.
One important point to note is that the business has the capability of expanding in future; therefore the system should give room for that. 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. Some systems do not allow simultaneous performance of tasks by different users 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. Establish what the vendor has quoted that the cost will cover. Mostly, the vendor quotes for the cost of installation, training, and maintenance for a specified period. Licenses for most accounting software are renewed annually at a specified fee. Before buying the software, discuss with the management where they intend to have the software installed and host. 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. Choose a vendor or developer who will train the users or staff on how to use the software.
Look for a software that can be customized by the user to give various reports depending on the users’ needs. The software should also be able to incorporate several accounting functions such as invoicing, tax returns, report generation, payroll reports, etc. together. A good accounting software should keep a record of all companies’ inventory.