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8 Critical Factors to Be Considered While Selecting the Right Accounting Software

Accounting software is computer software majorly designed for accounting professionals to manage accounts and perform day-to-day accounting operations. Accounting is a systematized practice, work, or process of communicating and tracking financial data. A business organization applies accounting software in their day-to-day accounting practices for different purposes including internal and external audits, reports, and financial analysis to comply with legal or internal managerial requirements. There are various types of accounting software including simple and easy, single-entry programs for individual record-keeping, to more urbane, double-entry systems that can process and track accounts receivable, accounts payable, payroll, and inventory, among other features and functions.

BEST ACCOUNTING SOFTWARE

Important factors for selecting the Best Accounting Software :-

1) Online or Offline

The first question to ask yourself is – Whether you require online software or desktop-based offline software?

How does it impact? Well, most businesses today are adopting cloud-based software as they offer a high number of benefits over traditional offline software. But, some businesses such as retail stores require speed and are not always connected to the internet. For them, offline Point-of-Sale (POS) systems are the best choice.

2) Data Security

If you are planning to opt for an online accounting application, then data security is the most vital aspect to check. If you have opted to go for an offline accounting package, then you can skip this.

Essential things to check:

– Confirm with the company on how they store the application data. Generally, this information will be available on their website. For instance, some of the trusted cloud hosting service providers are Amazon and Rackspace. If your accounting software provider is hosting the application on their own servers, enquire with them about the security measures they are taking to safeguard your data.

3) Features

List down the essential features that are mandatorily required in accounting software. Below are some key features which must be part of a good accounting package.

·        Generate invoices and customize the look and feel

·        Track and record expenses according to categories

·        Inventory management, inward-outward stock movements and wastage management

·        Bank reconciliation performance by importing bank transactions

·        Generate Purchase Orders (PO) and record inventory purchases

4) User Interface & Complexity

It is commonly seen that most entrepreneurs do not have any accounting background. Although you have a dedicated accountant who would be using the application, as an owner you should be able to log in and browse. Moreover, it should be quite easy for your employees to learn and understand the software. Investment in training is again an expense and should be avoided.

5) Scalability

Most businesses make a mistake by purchasing an application that suits their needs at the time of purchase. Later, when their business expands and starts growing, the accounting software fails to manage with the progress and ultimately business owners have to shift to another software. Shifting data from an existing system to entirely new software can be painful.

6) Exit Options

In case the company you are purchasing from shuts down its operations or you discover many bugs a few months later after purchase. To save yourself from such situations, it is always better to ensure that the accounting software provides the data export functionality.

7) Hidden Costs

Some software providers may charge for the support or upgrades. It is seen that sometimes as a part of a marketing strategy, basic software is offered at a lower cost and then you are forced to purchase ‘add-ons’ or pay extra as a ‘maintenance fee’. So, it is important to check if there are any hidden costs related to the software you are planning to purchase.

8) After-sales Support

This is the most significant but most unnoticed point while selecting accounting software. No matter how good or easy the software is, you require support at some point. If there is no one to talk to when you are stuck, your investment is in vain.

Lack of support is also one of the reasons why some accounting software is cheap. Obviously, the support cost is not involved in the offering. It is better to avoid such products at any cost.

Read a Press Release on “Accounting Software”: https://www.360quadrants.com/press-release/360quadrants-releases-best-accounting-software-companies-of-2020



on September 9 at 1:25

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