It makes good business sense to use the latest technology and software for your business accounting needs. Manual accounting systems can be highly error prone, and interfere with your company's order-to-delivery process. So, why not make it easier on yourself?
If you're thinking of making a change from a manual paper-and-pencil accounting operation, you've got a few things to consider:
"How can I tell which software is the best performer, and if it's right for my business?"
"I'll have to learn how to use the new software, and I don't have much time to spare."
"How do I transfer the accounting and other financial information to the new application?"
What Functions Will You Need?
In evaluating accounting software, you want to install applications built with small business users in mind - rather than consumers, or big company treasurers, comptrollers and others involved in high-powered managerial finance, cost accounting and other mysterious applications that you're unlikely to need.
While it's true that vendors of personal finance and chequebook writing software provide accounting functions that can be applied in your business, you're still better off with a small business accounting toolkit - simply because you'll have more functionality and hence more effective controls.
Some Key Questions to Ask
Before you order new software, here are some questions to ask vendors as you compare different product options:
Is the software license open-ended, so you can run the application on as many computers in the business as is necessary? If not, what will it cost to extend the program to additional machines?
How versatile is the program? For example, can it handle the distinct accounting needs of your company compared with project budgeting?
Can you easily convert data from one document type or another? For example, you may have begun by preparing an estimate for a customer. Now you need to convert that to an invoice for billing.
Can you control access to your accounts? Can you restrict access by specific function? For example, you may need to give certain employees access to key financial data, but you may not want them to be able to write cheques with the software. If that's so, you'll need a system that has tiered levels of access combined with a master password and sub-passwords.
Can you compare actual expenditures against budgeted expenditures? Most software has this important financial control feature, but it doesn't hurt to check.
Are the fields easy to navigate, with commonly understood terms? Not everybody who needs to work with accounting data has been trained in the language of accounting. Look for software that terms and instructions are easy to decipher, with a user interface that's intuitive for the user.
