Accounting software is specifically designed to be used by accountants. Those days are gone when finance professionals manually input and update the financial data of their organisation. There are different features present in accounting software these days. How easily you can use them to check errors and reconcile your bank statements distinguishes them.
Accounting software has helped many to keep track of their five accounts: equity, income, expenses, assets and liabilities. If your goal is to track any of these accounts, it’s time to invest in good accounting software. How will you choose the right one? Scroll down to understand the points that will help you make a wise decision.
How to choose the perfect accounting software?
- Check whether it’s online or offline – Since the technology is changing from offline to online, anyone must first decide whether to keep the records in paper or digital mode. In comparing both, the digital mode offers many more advantages than the paper mode since it has high-tech technology, speed, and is connected to the internet.
- Data security – If you have chosen the digital mode for storing your data, then securing your data is the next step. Data security is important while handling data online because it becomes vulnerable to malicious cyber-attacks and data leak cases once it is available online. Get information from your web server provider about what protocols they take to secure the data.
- Add-ons – Whether any add-ons are present, a good accounting software package contains many more features than basic ones like making and printing receipts. Good accounting software may provide the features like trading expenses or performing bank activities from the same. Other than just creating the receipts, software that assists in creating journal entries and ledger polio is a better option.
- User interface and complexity – Making the software advanced in features can also be a hassle because if too many things are available, the new employees will take much more time to learn the software usage than the expected time. As your owner, you should also know how to use the software and learn enough so that you can do things if your employees are stuck somewhere.
- Scalability – Business runs till the unforeseen period. The accounting software cannot be changed from time to time. Such software should be chosen to provide all the necessary features and stay in the run for a longer time. Do not buy software that satisfies the present needs of accounting and will not have many usages in the future time. Migration from one system to another can be tough.
- Exit options – What if the software company the business is using right now shuts down the next day? To avoid such situations, ensure the current software has the feature to export the present data available. The basic feature of exporting the journals and ledgers in an excel sheet should be there.
- Hidden costs – Always make sure how much the software costs. The business should find the actual and hidden costs attached to the software. Hidden costs may include costs of system upgradation, fixes or adding some new features. Check the pricing of the software from the official website of the company.
- Post-sale support – Even if the software world is perfectly fine right now, that software will require maintenance and support at some point in the future. The post-sale support is the most ignored aspect while selecting the software. Some software is cheap because they do not offer future support to the customers.
Tips to make the most of your accounting software
- Reassess your work with the accountant – After installing the accounting software, talk with your accountant, as the accountant is traditionally the one who handles all the tasks related to the accounting of the business. Make sure you know what accounting software an accountant does. Evaluate both of them just in case you are not paying two different identities for doing the same job.
- Ability to let other staff members use your accounting software – As an owner of the business, you would not want all the employees that work for you to know the accounting information of your business, especially if the accounting involves the salaries of other employees. But you can permit access to the account at different levels and scopes for people to handle the account and get the work done faster and more accurately.
- Track and test forecasts and budgets – The software with only basic features may not cost much compared to the software with many features. Try different software and find which software suits the best as per needs of the business. Allocate the budget for the software and its maintenance facilities. Predict the future cost of the system upgrade and be prepared for it when the time comes.
- Anticipate the risks earlier – Anticipating the risks earlier results in much better solutions to handle the risks than directly facing the issues. Use your software to find loopholes in the accounting and budgeting for the business. For example, the cash flow can be problematic, especially if the payments are late or the margins are too tight. Your software can aid you in tackling these issues with ease if handled properly.
- See what other options are available – The feature that attracts users towards cloud accounting is the ease of adding new features to the existing software. For example, if you already have the accounting software and after some time you wish to add the data from your eCommerce website to the pre-existing software, it can be done easily. Netsuite accounting provides a wide range of customization options, including the ability to create custom fields and workflows, allowing healthcare businesses to tailor the software to their specific needs and requirements.
In a nutshell
Accounting software has been simpler to use than ever. Dext accounting software is one of the most used accounting software that helps your organisation handle the data and understand the financial needs, track its performance and helps in making decisions for a versatile future. Once you have installed the Dext accounting software, your business’s income and expenses will be tracked if you purchase anything while starting your business. Do not be confused with the variety of accounting software present in the market. Effortlessly install the Dext accounting software and stay stress-free with your investment decisions!