How We Chose the Best Accounting Software
Choosing software that will handle all of the critical data of your business finances needs careful consideration. The following are the three key features to look for when deciding which accounting software will best fit your business needs.Core Accounting Features
A good accounting software assists with the essential functions necessary to balance a business's books, including general ledger functionality, the ability to track accounts payable (A/P) and accounts receivable (A/R), fixed assets, and bank reconciliation.Billing & Invoicing Features
Good accounting software automates the collection of payments from customers to enable timely and consistent collection with minimal human error. These features are typically add-ons for multicurrency and e-commerce support, sales tax calculations, credit card payment processing, balance sheet tracking, and bank feeds.Support for Multiple Business Needs
Every business has different needs. We prioritized software that offers additional accounting functions like payroll processing, project-based billing, inventory management, nonprofits, and more.What is Accounting Software?
Accounting software is a central system that enables the recording of the flow of money coming in your organization for internal and external reviews during the auditing process. It is an application with tools that small businesses use to gauge their financial health and work within the government set regulations using ledgers, account payables, receivables, billing, and stock management. The goal of any accounting software is to not only reflect your financial and legal standings but also automate labor-intensive accounting tasks, expedite tax preparation, and reduce human error risks.How We Chose the Best Accounting Software
Choosing software that will handle all of the critical data of your business finances needs careful consideration. The following are the three key features to look for when deciding which accounting software will best fit your business needs.
Core Accounting Features
A good accounting software assists with the essential functions necessary to balance a business’s books, including general ledger functionality, the ability to track accounts payable (A/P) and accounts receivable (A/R), fixed assets, and bank reconciliation.
Billing & Invoicing Features
Good accounting software automates the collection of payments from customers to enable timely and consistent collection with minimal human error. These features are typically add-ons for multicurrency and e-commerce support, sales tax calculations, credit card payment processing, balance sheet tracking, and bank feeds.
Support for Multiple Business Needs
Every business has different needs. We prioritized software that offers additional accounting functions like payroll processing, project-based billing, inventory management, nonprofits, and more.
What is Accounting Software?
Accounting software is a central system that enables the recording of the flow of money coming in your organization for internal and external reviews during the auditing process. It is an application with tools that small businesses use to gauge their financial health and work within the government set regulations using ledgers, account payables, receivables, billing, and stock management.
The goal of any accounting software is to not only reflect your financial and legal standings but also automate labor-intensive accounting tasks, expedite tax preparation, and reduce human error risks.
Benefits of Accounting Software
The primary benefit of an accounting software is accounting for every aspect of a business’s finances, including:
- Billing and Invoicing: Some software is dedicated to billing and invoicing transactions, which is integral in any financial process. Automating repetitive operations should be a function of any good accounting software that helps staff concentrate on core business activities.
- Budget and Forecast: Planning and forecasting is another benefit as it helps your business have a clear understanding of its performance and estimate budgets for the next financial period.
- Fixed Asset Management: Managing fixed assets can come bundled or as a separate tool that helps maintain the finances relating to the company’s fixed assets. With features such as audit history, depreciation, costs, and resource allocation, it makes it easy to get the exact value of your property.
- Payroll Management: Accounting systems with a myriad of tools make managing your payroll management task more manageable.
- Inventory Management: A good accounting software should also help manage inventory to ensure you do not overstock and avoid understocking.
Must-Have Features for Accounting Software
Must-have features will vary on your unique business needs, but considering the following features when comparison shopping:
- Invoice Integration. Comprehensive billing and invoicing functionality means you don’t have to purchase a separate module to handle the issuances of invoices.
- Allow for Customization. No accounting software can fit all accounting processes, so look for one that is easy to use and allows for customization, so you can cater it to your specific needs.
- Support Secure Operations. Business finances are some of the most sensitive data in any organization. Look for software that offers the best security on data transfer and management. Go with a reputable accounting software vendor and confirm security measures in advance.
- Mobile Usage. A mobile-ready accounting system is now a necessity for business owners who need regular and timely reports anywhere. An excellent mobile version should operate on Android or iOS devices and offer the full functionality of the web or desktop versions.
- Reliable Help Desk. Buying software that does not guarantee reliable support from the help desk is not ideal. It’s best to test the support team before making any necessary purchase.
The Cost of Accounting Software
In general, pricing plans come in monthly or yearly subscriptions or a one-off payment method with additional features added for an extra cost. Some softwares that charge a one-time fee may have licenses that require renewal one a financial year. Differences in costs between platforms vary due to type of features, number of supported users, storage capacity, and access to a help desk.