Businesses requires accounting software to be able to manage the financial tasks and obligations. Finance related roles that an accounting software can handle includes payroll computation, sales reporting and invoicing, amongst several other tasks. With several available accounting software in the market today, companies can choose the one that fits their financial requirements. 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. Seek to know what the company expects the accounting software to do for them. List down all the major functions that the software requires to handle before choosing the software. This activity helps in letting the company decide the kind of software to get, whether tailor-made or off-shelf.
One important point to note is that the business has the capability of expanding in future; therefore the system should give room for that. Remember that the business will grow someday and therefore need accounting software that will accommodate the growth. Some of the aspects the software should allow being added is the number of customers and various software roles.
Consider the number of users the accounting software will allow for a go. There are systems that do not allow the users to perform the same task 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.
The cost of the software is also another major point to note when purchasing accounting software. Analyse what the total cost will cater for. 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. Consider the site where the software will be installed and the data hosted. To save on costs of acquiring a new server and looking for more storage space; the company can decide to have an off-site installation and have the data hosted on the cloud. There are however corporates companies who decided to have hoist the data and have the software installed on-site.
Consider the ease of using the software. Different accounting software require different accounting skills to use. Ensure that the vendor or developer if the software will be customized will offer training to the users, after successful installation.
The user should be versatile enough to give customized reports as per the users requests. The system should allow the user incorporate functions systematically, e.g. tax computation and returns filling after successful running of the payroll, and several other functions. It should also maintain an inventory record of all companies inventory.