15 things to consider when choosing accounting software

Choosing the right bookkeeper is one thing.  Choosing the right accounting software is quite another.

Choosing the right accounting software can be difficult and it can be all to easy to pick the wrong one. Which is why we have put together this list of the top 10 things to consider when choosing accounting software.

1 – Features

Consider the features that you need and the ones you may need in the future as your business grows. Some online software packages may seem like a good idea now but will they match what your business needs in a years time or more?

2 – Stock Control and Inventory Management

If you have no stock you can’t sell it.  You can get in quite a pickle if you start selling a product you don’t have. Many accounting software packages like Sage have tracking software for stock and inventory.  Handy if you are a bar needing to track stock of beer and spirits for example.

If your business uses stock then having an accounting software package that can help you manage it is invaluable.

3 – Business Expenses

Tracking mileage, parking, food and drink when travelling etc.  Accounting software like Xero can be invaluable for your business to keep track of expenses, credit card payments and even other small outgoings like office supplies.

4 – Payroll

If your business is more than just yourself then you will have to manage payroll. At Momentum Bookkeeping, we can handle the payroll for you.  But if your accounting software can help us with that then it means your entire accounting and bookkeeping system is all under one system which can be invaluable when submitting everything to your accountant.

5 – Accounts Receivable

Cash flow is king and ensuring that you can track the money you are owed is a big part of that.

6 – Accounts Payable

Just as important as ensuring you have the money coming in is tracking and making sure that the money going out actually goes out through accounts payable features.

7 – Reporting

Having accounting software that you can input data into is one thing but having this transformed into accounts that you can understand are just as important. Good reporting can lead to good business decisions.

8 – How many users can it handle

Some accounting software packages may seem great but can they handle additional users?  What if you need a user account for your bookkeeper and another for your accountant and another for additional staff in the business.  And while we are on the topic, can these user accounts be limited in what they can access/control in the accounting software?

9 – Is it cloud based?

For so many of us (especially after the pandemic), we are on the move a lot and even working in different office space (and from home) several days a week so does your accounting software have the ability to be accessed from multiple points on the cloud or is it confined to one desktop computer at one desk in  one office?

10 – User Friendly

It is all very good and well having an amazing software package that does everything we have already discussed.  But if you can’t understand how to use it and maximise its features, you are missing out on its potential. And it needs to be clear, demonstrating all the information you need to hand such as total income, expenses, profit/loss etc.

11 – Safe and Secure

Your accounts are quite important and they should be a safely guarded secret from prying eyes.  So what is the security level like on this accounting software?  Cloud based software is the best for this and is backed up regularly so you don’t have to worry about it becoming lost or corrupt.

12 – Customer Support

While we all like to think that we can do it all ourselves, there are times when we need some help. So what is the support like?  Do they have a phone number or a live chat function?  How often do they reply to support ticket questions?  At Momentum Bookkeeping, we can be contacted by phone all working day long but not every business is like us.

13 – Integration

These days being able to integrate things is quite handy.  For example, integrating website shopping carts to stock systems so that when someone purchases a product it is automatically removed from the actual stock that you have – very handy.  The same goes for accounting software.  Does it have the ability to integrate with other systems?

14 – Are they reputable/reliable

You may think you have found the ideal accounting software but what happens if the company behind it goes bust or shuts down? Can you transfer all of your data to another provider?  Little thoughts like this now can make a huge difference.

15 – Price

Yes we finally got round to price.  Some packages are free but therefore limited.  Some are cheap but then you have to pay more to unlock features. And some are very expensive and offer your everything under the sun. Check what the costs are both now and in the future.  Will you need to upgrade the package if you increase the functionality and if so, what will that cost be?

Conclusions

Covering the full range of bookkeeping services that the typical business would require, we have built our bookkeeping services around going a step further. And that means that we offer not just what you expect, but what you need (even if you didn’t know you need it).

From VAT returns and payroll services to custom built MySQL databases as part of our Bespoke Services. From a once a year service to a daily interaction service into your business; we can be as integrated with your business as you want us to be. And that includes working with you on what type of accounting software you may need.

While you may not love bookkeeping, we do. So whether you have a question about one of our bookkeeping services or you want to discuss a tailored service to suit what you need to get on with running your business, our door is always open.