November 1, 2018

5 Questions to ask when choosing an accounting software

Naveen Shayan

LedgerMax specialist

When you’re starting a business, an accounting software is preferably the first program you should invest in. It will not only keep track of your expenses and profits but will also give you a clear picture of where your business is heading to. Though, from a range of different accounting software available in the market, it is pretty confusing to choose the right one for your business. Though, we will try to make this mission possible for you by jotting down some filtering standards to help you pick the best accounting software for your business.

The following five questions are especially designed to help you test the water before you settle on an accounting software. This will serve as a guide in your expedition for the perfect bookkeeping software by evaluating what you’re seeking, what suits your needs and what are the different options available in this regard.

 So, let the quest begins for the best accounting software for your business… 

1.    What kind of a business do I own?

Surprisingly, all accounting software are created differently. An accounting software is designed in accordance with different business sizes, types and locations in mind. Therefore, it is imperative to know the exclusive requirements of your business and then picking the accounting software that serves the purpose. For instance, a small business with no branches and less than 20 employees will have entirely different requirements as compared to a large enterprise that has many branches and holds more than hundred employees. Also, there are specific methods of accounting used in organizations such as cash basis and accrual accounting etc. Hence, before picking up any accounting software, make sure you know which method you are currently using and which method you would prefer in future.

 2.    What is my current way of accounting?

No matter if you are using a simple calculator and a worksheet or use excel for your bookkeeping needs; the point to be noted is your current way of accounting and those features in your system that you believe works effectively in your case? Before switching to an accounting software, consider the aspects that you find attractive in your current accounting procedure that makes you feel on top of the things. This is important for the reason that when you switch to an accounting software, it must meet or outdo all the features of your current accounting system. Though if you find nothing works well in your current system, your decision to opt for an accounting software is just perfect! Continue reading…

 3.    Which features should be unconditionally included in my accounting software?

Only you can answer this question. You are setting your sights on an accounting software in the interest of its remarkable features. In the first two questions, you defined your business type and size and then your present accounting method. Now, for your future perspectives, list down the features that you believe are absolutely important for instance, budgeting, inventory, invoicing, payroll, taxation, mobile apps, reports, sales order, purchase order, bank reconciliation and customer portal to name a few.

 4.    What is my budget to spend on an accounting software?

Accounting software are available in different price packages; from expensive to reasonable and free as well. These software are also available on monthly and yearly packages. However, you need to examine your business requirements first and then calculate how much you’re ready to spend. The more you pay, the more features you get. Though, it is very important that you choose a plan as per your business accounting needs.

 5.    Where do I see my business in coming years?

It is important to purchase an accounting software package that not only fulfills your current needs but can also be feasible in near future. Let’s assume you’re currently initiating a small venture of designing clothes for your family and friends for some extra money. But in approximately three years, you see yourself getting enough customers to launch your own boutique. Now, when you’re designing clothes just for family and friends, a basic accounting software will cater your requirements. However, within a span of three years you could expand entirely which will call for a better accounting software package with more applicable features. Hence, instead of searching for another accounting software at that time, it is better to choose a package that enhances with your business growth. This means that you should go for an accounting software that understands your current needs and can accommodate your potential future requirements as well.

LedgerMax is one such accounting software that not only offers amazing features at most reasonable prices but also offers customized packages to cover all your current and future business needs. LedgerMax is an accounting and finance software for growing SMEs which put together enterprise-level features and modules and make the software affordable enough for small business owners.

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