Whether you choose to go with a known brand like Quickbooks or Xero, or instead choose something lesser known in the software industry, as a small business owner you have to choose the right business accounting software to keep your books in order. From maintaining the payroll and expenses to preparing financial statements for clients and customers, the right software can make your life much easier. Most major software packages will include similar features that you should look for when purchasing.
Most of the better known software programs offer a suite of utilities suitable for businesses in any industry. This includes creating invoices, creating bills for customers, and basic payroll functionality.
When reviewing software, take note of:
– The number of users and number of clients the software offers at different price tiers.
– Whether it allows for unlimited invoicing or has a limit based on the price tier.
– The basic invoicing functions, accounting tasks, and creation of customized templates.
– Level in which you can track expenses, costs, income, and assets.
– Assistance with basic tax filing and preparation.
– Quote estimation and time tracking.
Many software packages also provide businesses with features to manage bills and payments, to manage vendors and purchasers, and to manage project data on or offline.
Time saving features –
The better business accounting software programs are also going to provide features which save business owners a lot of time, like data backup, generating reports, importing bank transactions, and supporting multiple tax rates when different figures and prices are entered. Automatic billing, supporting multiple currencies, and providing employee and contractor time sheets are also provided in some packages. Identify where you’ll save the most time for your money and spend accordingly.
Using the right software can be a huge help for small businesses. A good accounting software will:
– Save time from manually creating invoices, bills, time sheets, etc
– Ensure accuracy in transactions
– Provide industry insights via comparison graphs, exclusive information sources
– Provide up to date pricing information, allowing you to always give an accurate and current quote, and avoid losing customers to competitors.
Software also helps your business in the compliance department. Regulations in accounting, taxes, and different components in the business world are always changing. A good business accounting program will automatically stay updated, guaranteeing the most accurate and up to date information is present. Further, software will help increase staff productivity. Since it cuts down on the manual work employees have to do, they can focus their time and effort on other tasks.
Remember, not all software is created equally, and not all will include the above listed features. Some may include features that aren’t listed here, and there are many industry-specific software packages that may provide features your business would find valuable. It’s important to look around and find a program that fits your needs, since switching later on can be a pain. Even if it means paying a little more for top notch business accounting software, the time savings, accuracy, efficiency, and business compliance factors alone, are worth paying more for, when it comes to properly maintaining your business.