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Tips on choosing Accounting Software

9/12/2013 5:06:47 PM | by Anonymous

Accounting Software

Accounting software helps save hours of time as compared to handling the books manually. It is also more efficient than using a spreadsheet. This is because accounting software reduces or eliminates redundant data entry. For example: entering the customer’s address on the quote followed by the work order and then invoice.

 

Working as a sole proprietor with no employees, inventories and only a handful of customers. You may not need accounting software, you can easily tab on free or cheap accounting software options available. Small business owners that carry inventories also have generally more customers and will save time. They also provide more accurate records if accounting software are used. These days, accounting software are much easier to use than it once was. Some small accounting software was designed for ease of use by a person with no accounting background orexperience.

 

Accounting software however does not replace the need for an accountant. Accountants are needed to ensure that your business adheres to all legal and accepted accounting practices. When you use accounting software, you take accounting tasks out of the hands of an accountant, it helps saves money.

 

Accounting software will have reports you need to produce to your accountant on a monthly, annually and quarterly basis. The reports can either be printed or delivered securely to an accountant electronically.

 

Narrowing down the accounting software choices by making a list of accounting features you need in order to run the business. Most of the features would include:

 

Inventory Management Sales Tracking Manage customer contacts or work with your current contact management software (Outlook, ACT)Merchant account support to accept credit payments.

 

Types of Accounting Software

1. Industry Specific Accounting Software

Such software is designed specifically for industries in the construction, manufacturing and wholesale distributors. If your business is in the industry with specific accounting requirements, there may be certain software with the appropriate features to meet your requirements.

 

2. Talk to Others About Accounting Software

While buying accounting software, speak to at least three experienced people who uses accounting software in their businesses which are similar to the one you want to buy. Discuss about the ways the software can be improved. Given that, you will realize that there are no perfect software however do not be discouraged. The main goal is finding accounting software that is best suited for your business needs.

 

Also, communicate with your accountant to know what reports are needed and how they can be generated with the accounting software you are considering to purchase.

 

Points that can be noted are:

- Will the accounting software help my business to grow?

Find out if the software has modules that can be added. One module that is commonly added would be the payroll accounting. If modules are not added, it does not allow the software to be upgraded easily into a more updated version.

 

- What accounting software does your bank associates with?

Downloading transactions from your bank helps save a lot of time and helps find out what software your bank associates with.

 

- Is it an online or desktop accounting software?

The online software is web based that runs securely through a browser. It is convenient for accessing accounting data and records from different computers.

 

- Can access be restricted for certain users?

If there are more than one users, there should only be an individual who is allowed access to the full data while others are only entitled to certain data they need instead of the full reports.

 

- Does the accounting software provides a free trail?

It is best to try it before you purchase it. To view the full documentation, click help on the free trail followed by searching for user guides or online tutorials.

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