Companies needs accounting software to assist them in managing and handling finance-related tasks. Some of this tasks are tax returns, sales and invoicing, payroll processing amongst others. There are several accounting software on the market today and companies can choose what suits them most. When looking for an accounting software, consider the following factors.
The most important thing will be to understand the major activities or tasks carried out in the finance department. What are the expectations of the company in regards to the functions the accounting software will be performing. List down all the major functions that the software requires to handle before choosing the software. This activity helps in letting the company decide the kind of software to get, whether tailor-made or off-shelf.
When choosing accounting software, consider the possibility of expanding the business. The accounting software should, therefore, allow for future expansion. The software should allow for an addition of the number of clients and roles of the users.
Consider the number of users the accounting software will allow for a go. Ensure that the system allows different users to perform the same task at the same time, e.g., raise an order or invoice at the same time. A good accounting software should also allow for an addition of a new user and removal of an old user. The data stored in the database should be accurate and consistent.
Consider the cost of the accounting system in regards to the functions that the accounting software is expected to perform. What will the overall cost cover. Costs charged normally includes the software cost as well as the cost of installation and maintenance for a specified period of time, as well as training cost. Licenses for most accounting software are renewed annually at a specified fee. Also, consider the location where data will be hosted. To save on costs of acquiring a new server and looking for more storage space; the company can decide to have an off-site installation and have the data hosted on the cloud. There are however corporates companies who decided to have hoist the data and have the software installed on-site.
Is the software user friendly? There are accounting software that requires users to have experience on accounting software so that they can be able to use the software. Ensure that the vendor or developer if the software will be customized will offer training to the users, after successful installation.
The user should be versatile enough to give customized reports as per the users requests. Consider the capability of the software in terms of incorporation several functions together such making an order and generating an invoice together, submitting returns, etc. Choose a software that keeps accurate records of all inventory.