Every business is money oriented. Money flow gradually increases as your business start to progress. To keep your cash flow balanced and error-free the need of accounting software is inevitable. With the use of accounting software, the financial health of your business can be regularly tracked and also you can keep track of your account movements. Creation of expenses and invoices can be effectively done using accounting software. The accounting software also allows you to create effective reports based on your account functions. The software’s are also capable of your bill tracking, inventory management, and project management.
There are a lot of accounting software’s out there in the market and choosing one among them will definitely be a hard task. Every software will be different from one another. Every software will have their own advantages and disadvantages. The trick is to choose the right one that suits your business well and most.
Mainly there should be three factors to consider while going for accounting software. The accounting software you are going for should definitely be cost-effective and value for money product. Also, the software shall be user-friendly along with enough features to carry out the accounting process smoothly. In this blog, we will discuss the various factors to consider while going for accounting software.
a) Multiuser accessibility: the accounting software shall be designed in such a way that it shall provide multiple users the accessibility and control over the data and also view about the tasks they can access. With this feature, you can provide your business partner and accountant the accessibility to the software simultaneously. In most of the systems, multiuser accessibility is provided without any additional cost.
b) Multi-business support: when you are having one or more business, it will be better to have a single accounting software to control all that business. It is in this context the multi-business support of accounting software become important. If your accounting software has the multi-business support, then you can control your multiple businesses just by using a single software.
c) Cloud-based software along with mobile accessibility: the accounting software shall be cloud-based so that it can provide accessibility from anywhere through the internet. This helps in remote handling of your business. Along with these mobile applications to monitor the important information of the accounting software shall also be provided which allows effortless accounts management anytime.
d) Data security: while dealing with cloud-based software security threats are always common. The account-based data should be always secured for the proper functioning of a business.
e) Scalability: the accounting software you are opting for shall be scalable in nature, it means the software should be capable of handling your accounts when your business starts upgrading. Otherwise, you will have to go through a lot number of troubles like transferring of data from an existing system to new software.
Having the most useful accounting features is what which determines the quality of accounting software. The major accounting features which an accounting software requirements are listed below;
a) Basic features: the accounting software shall offer all the basic accounting features. This includes invoicing, expense tracking, incoming tracking, customer management, and financial report generation.
b) Automation feature: the accounting software you use shall be highly capable of automation. This allows you for time-saving. The process like sending invoices, due notifications etc. can be automated with the software. This solves a lot of complex work along with time-saving. Also by suggesting the transaction matches and thus reconciling your accounts, the accounting software can automate your work and thus save your time.
c) Tax preparation: by upgrading to an accounting software you are making your business a lot more smooth and easy to handle. Automatic tax preparation can be done using your accounts software. With the accounting software automatic tax calculation, multiple tax rate, and tax reporting can be done. This helps you in reducing the number of errors and significantly reducing the amount of time invested to complete the task. The tax files prepared by the software will be easily accessible to the accountant.
d) Add on services: add-on services such as payrolls and payment processing shall be present in the accounting software. This will make employee payment and invoice payment easy. Also, this makes the working of accountant a lot easier.
e) Integrating third parties: integrating your existing business software and services and services along with the accounting software allows to automatically share data between them. Inventory, e-commerce, CRM, POS systems, payment processing etc. can be integrated along with the accounting software.
There are certain selection criteria which you should follow before going for accounting software;
a) Choose a suitable one: your accountant will be the one who knows about all the accounting details regarding your company, so while going for an accounting software it is a must that you should consult with your accountant.
b) Budget: the budget is very important if you filter software according to your budget you can shortlist your options very easily.
c) Extensive search: use various options such as google search to find out the most suitable software option available for you.
d) Use the trial version: always go for the software’s which allows you to use a trial version to give an idea about what the software really is.
e) Schedule a demo: go for the software providers who are willing to give you a demo of the software along with walkthrough videos if available.
The cost of the software is another factor to consider while going for the accounting software. The accounting software shall be cost effective and value for money. There is efficient accounting software like Odoo which is cloud-based software. In the case of Odoo, there is no license fee, unlike other commercial ERPs. This significantly reduces the cost involved in the implementation of ERP solutions.
Odoo 12 accounting software
One of the best option out there in the market while searching for an accounting software will be Odoo 12. With Odoo 12 you will get various accounting features like a double entry, cash basis & accrual, multi-company support, multi-currency support, financial reports, tax calculation, automatic bank feeds, inventory valuation etc. Odoo 12 accounting definitely can be a booster for your business.