In the past, bookkeepers relied on pen and paper to record data and maintain a company’s financial records in specialized ledgers. Nowadays, computer systems have taken over the role of bookkeeping, replacing traditional methods.
As a matter of fact, there are numerous software programs designed specifically for this purpose. A lot of essential criteria must be considered when selecting the best bookkeeping software for your business.
Careful thinking today can assist you in selecting a software system that will last your firm for years. Now, let’s go into the crucial variables to consider.
a short note:
Although “accounting software” and “bookkeeping software” are often used interchangeably, they are actually two different things. While bookkeeping software includes some accounting features, they are separate disciplines.
factor 1: ease of use
time to hit the book
While all software packages will take some time to grasp, some are more intuitive than others. If the person operating the system is new to bookkeeping, choose a primary platform with support features such as tutorials, instructions, and live help.
If you have an experienced bookkeeper on your team, consider using a program they are already familiar with. This reduces implementation headaches.
Accessibility
Another essential aspect of usability is accessibility. Cloud-based bookkeeping software allows you to log in from virtually any location. In fact, many cloud-based platforms feature apps that allow you to access your books from mobile devices. On the other hand, desktop bookkeeping software can only be accessed through the computer on which it was installed.
Permissions
Some bookkeeping software systems limit the number of users who can access your books. If you have numerous offices or external financial advisors, make sure the bookkeeping software you’re considering allows those people to establish accounts.
factor 2: features of bookkeeping software
The size of your business, the types of products or services you provide, and your preference for in-house versus third-party processing will all influence which features you require from your bookkeeping software.
Any good bookkeeping tool will support basic transactions like invoices and expenses. Here are some of the more advanced capabilities you could require from your bookkeeping software:
- Payroll
If you have employees, someone will have to supervise payroll processes. If you prefer to have your bookkeeper manage your payroll, you’ll need an accounting program with sophisticated payroll features.
Another alternative is to manage payroll with a third-party application that links with your bookkeeping software. This way, all of your information is kept in one location.
Explore more: How to choose the right bookkeeping software for your business
- Inventory
Businesses that offer physical goods will undoubtedly want a method to track and manage inventory. The best method to do so is to use a bookkeeping platform that includes inventory management capabilities.
- Subscriptions
Many service providers, particularly SaaS companies, sell their products through subscriptions. Such businesses will undoubtedly want a bookkeeping system that makes subscription administration simple.
For example, you’ll want a platform that will automatically produce invoices for your members every month with minimal administrative effort.
- Sales tax
Setting, collecting, tracking, and paying sales tax is difficult enough when you only sell in one jurisdiction. Companies that sell their items in numerous states, which almost all e-commerce companies do, will undoubtedly require an excellent sales tax administration system.
A full-fledged e-commerce business will almost certainly require a separate sales tax software package. However, make sure that your bookkeeping software is compatible with the package.
Businesses with less complex sales tax problems may be able to get by with just bookkeeping software if it includes a sufficiently solid built-in sales tax administration system.
Factor 3: Scalability
Changing from one bookkeeping tool to another is frequently a logistical challenge. That is why selecting bookkeeping software that will work for your company now and in the future is critical. Consider your goals, then select what you’d need from your bookkeeping software to help you achieve your goals.
For example, if you intend to open offices in other states, you’ll require an accounting software platform that supports multi-state payroll and has enough users to support each office.
Many better bookkeeping software solutions are available in multiple versions, each based on the same core software program. When your company expands, you may easily and rapidly upgrade your bookkeeping software to the following version.
The benefit of this approach is that you don’t have to pay for features you don’t use. However, installing them is simple if you require more advanced features.
factor 4: compatibility
Unless you just started your company yesterday, you presumably already have a financial management framework in place. You presumably have a company bank account or two, loans, credit cards, and possibly even a CPA – even if you only see them around tax Season.
Selecting a bookkeeping software solution that will interface seamlessly with your existing systems is critical. This is especially critical if you wish to continue working with your CPA or other financial advisor.
You’ll make your life much easier if you choose a bookkeeping application that matches what they’re using in their own office (or is at least something they’re familiar with).
You should also consider how long it will take to set up the new software solution. Some outstanding bookkeeping software programs are so complex that they require advanced technical expertise to get them up and running.
If you don’t have a dedicated IT specialist, you’ll need to hire someone to set it up. If you run into technical issues down the road, you’ll need to hire an expert to help you address them. On the other hand, if you have an IT expert who is knowledgeable about that complex software, it could be a terrific option for you.
helpful resource: ultimate guide to bookkeeping costs factors pricing, and more
factor 5: price
By the time you’ve gone through all of the above considerations, you’ve probably cut your search down to just a few bookkeeping software solutions. It’s time to think about what your budget can accommodate.
The more specialized the program and the more extensive the feature set, the more you may expect to pay for your bookkeeping software. To make your software economical, you may need to sacrifice some functionality.
For example, you may need the most outstanding inventory management software available but discover that the bookkeeping software with the most complete inventory management capabilities is out of your price range.
In that case, look into other options. Many bookkeeping software solutions will integrate with a variety of third-party apps. Perhaps you’d be better off selecting a bookkeeping program that doesn’t have strong inventory management but interfaces with a solid inventory management app.
you may also like to read: how historic bookkeeping can help your business thrive
Another Option
Before you spend money on an accounting software system that you will manage yourself, consider whether this is the best use of your money. Hiring a Countick to manage your bookkeeping can save you the trouble of setting up and maintaining your own bookkeeping system.
The Countick manages our clients’ books with the industry-standard application QuickBooks Online. Combining it with having a dedicated account manager gives you the best of both worlds.
You don’t have to worry about handling the books yourself or locating and hiring an in-house bookkeeper because you’re getting a sophisticated bookkeeping software system and a fantastic bookkeeper, all in a straightforward service.
At Countick, we have a team of skilled bookkeepers who use cutting-edge technology to automate your bookkeeping. If you wish to keep better records, try Countick.
