Selecting Online Accounting Software for Small Business

It is always a good practice for a small business to use the latest online accounting software. You should take some time out to judge whether the software you are using is fully satisfying your business' accounting needs. You should also judge whether it will continue to do so even after your business expands.

If you are thinking of switching to better accounting software, you should not hurry. You need to consider a few factors before choosing online accounting software for small businesses. It will positively impact your choice of business software.

Of course, the first question that you should as is, "Do I need to invest in online accounting software?" If you are running a small business, maybe it is okay for you to use paper-pencil accounting or Excel spreadsheets.

But, for how long?

Key Factors to Select Right Accounting Software

Know Your Business Needs

Before you buy online accounting software for your small business, you should brainstorm and find your business needs. You can do so by mapping your business processes. It will give you the functionality that you need to look for in accounting software. It will also give you a chance to isolate processes that you should automate with the software. It is also a chance for you to identify processes that you should eliminate. You should explore:

• Billing & Invoicing

• Accounts Receivable

• Accounts Payable

• Budgeting & Forecasting

• Banking Options

• E-Invoicing

• Recurring Transactions

• Account Reconciliations

• Track Sales & Expenses

• Inventory System

• Reporting

Talk to Your Staff

You need to talk the matter over with your staff before investing in accounting software. If they are going to have to use it, they will want it to be user-friendly and easy to learn. They can give you plenty of suggestions on what functionality you may look for: 

• Dashboard

• AutoSave Session

• Multi-Currency Support

• Multi-User / Roles

• Customer & Vendor Management

• Customized Invoices

• Activity Log

• Easy Account Setup

• Easy Data Import/Export

• Profit-Loss & Balance Sheet Reports

• Simplified Navigation

• Email, Print Estimates, Invoices

• Easy Search Options

Invest in Customized Software?

Online accounting software comes with pretty good functionality. Do not go for customized software unless it is a must for you. This software is a long-term risk. They become difficult to maintain, update, or upgrade.

On the other hand, you can go for online accounting software. It may not address all your business needs. You may also need to reconfigure your business processes to match the software. However, a small business is better off with standard functionality, unless it is a break or a make situation.

The software enables modern business owners to keep in touch with their business’ financial data and email invoices to the customers on-the-go. They also get to collaborate with their accountants and make faster decisions.

Take a Free Trial

Most of the vendors offering online accounting software offer a free trial of their software. Go to their websites, download free software, and try it in a real situation. See if it supports your business needs. It is granted that a free version offers fewer features than its paid version; it will enough to help you figure out whether it is the tool you want.

Customer Support

Implementing new accounting software could be uncomfortable. Make sure that the vendor offers reliable customer support. Because if your staff is going to need it, they are going to need it fast and instantly. The level and proficiency of customer support offered is a vital factor. It is going to determine how fast your staff is going to transition from the old to the new system.

Get Expert Advice

Get advice from your accountant or other experts in your industry. Search for informative product reviews online. Ask for the opinion of a current user of the software. Know if they support it.

Updating their books of account is a statutory requirement for business owners. As per the expert's advice, timely bookkeeping & accounting makes available financial data for making a business decision.

If your business is growing, you will need to think about automation. Even as a small business owner, you need to know your current business needs and invest in the right online accounting software. You need to ensure it will also meet business' future needs. In short, you need to know where your business is heading and provide for it.