Small business owners are often reluctant to invest in new equipment or software. “What I have works just fine,” they say. “Why spend the money to get something new?”
The truth is often not that what they have works “just fine”, but that they don’t want to pay for something new, or they don’t want to have to change the way they do things. However, when competitors upgrade equipment and software, they gain a competitive edge that might put other businesses out of business.
So it is with accounting software. The right accounting software is well-worth the investment, as it will help businesses save time, identify areas of waste, and catch potential financial problems before those problems become unmanageable. Here are five tips for choosing the right accounting software and maximizing your return on investment.
1. Decide on which features your business needs.
Different accounting software is designed for different types of businesses. For example, some businesses require a way to manage and track inventory, whereas service-based businesses do not. Most professional-grade accounting software also offers payroll and business tax reporting features, but if you’re a company of one, you may not need such options. Before you shop, make a list of what jobs you want your accounting software to do for you. This list will help you immediately narrow your focus.
2. Find out if you can get industry-specific software.
Believe it or not, there are accounting software programs designed for specific businesses. For example, manufacturing, wholesale distributors, and construction companies can all find accounting software that’s already customized to their needs. Such industry-specific software will definitely increase the ROI on your accounting software.
3. Ask your bank what kind of software they support.
One amazing feature of professional-grade accounting software is that many programs can communicate directly with your bank and automatically update your accounts. Imagine the time this will save when you don’t have to enter each transaction into the program by hand! Instead, transactions can be downloaded directly into the accounting program. However, not all accounting software is supported by all banks. Therefore, speak to your bank before you spend a lot of money on new accounting software.
4. Take advantage of free trials.
Many accounting software programs start with a free trial. These free trials give you a chance to check out the software before you decide that it’s right for your business. Again, this will save you money in the long run.
5. Consider customized accounting software.
If you find that off-the-shelf or web-based accounting software doesn’t suit your needs, you should consider contacting a software company that specializes in creating customized accounting software. This type of software is only worth it if you are a slightly larger business with very specific accounting needs. However, if you do have specific accounting needs not met by standard accounting programs, you should definitely consider customized software.
Hopefully, the five tips listed above will help you get going as you consider how to get the highest ROI on your business accounting software.
