How do you select the right accounting solution?
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QuickBooks aside, deciding on an accounting solution that is right for your business can be an overwhelming task.
A good accounting package will improve your business by making it more profitable, more organized, and more efficient.
Getting the wrong solution can, however, prove to be expensive in the long run.
How do you find good small business accounting software that works for your business?
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Evaluate business requirements
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While most off-the-shelf accounting software is suitable for small and medium-sized businesses, it is a good idea to analyse your business needs before deciding.
Ask questions like why do I need to do this? What is wrong with the way things are done now?
Don't just focus on the current needs. Think of your future needs as well. Is your business growing? What will your requirements be in a year, two years from now?
Most small to medium sized businesses have standard accounting requirements. Some of the standard functions are:
- Issue invoices to customers
- Issue receipts to customers when payment is made
- Record purchases
- Make payments
Where requirements start to differ is in:
- Volume of transactions
- Do you need to trade in stock?
- Do you trade in foreign currencies?
- Will more than one person be using the system
It would be a good idea to get your Accountant or Consultant involved in this process. |
Evaluate the solution
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- Compliance with local statutory and legal requirements
- Ease of use
- Learning curve
- Scalability
- Cost
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Evaluate the vendor |
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- How long has the solution been in the market?
- Do they have a large user base?
- Do they provide upgrades or enhancements (not just in terms of legislation, but also in terms of technological changes)?
- Do they provide on-going support?
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Evaluate the consultant/reseller |
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Understanding and defining your support requirements is a major part of choosing the right package. You need to consider what help you will need to set up, install and maintain your accounting solution.
Your consultant/reseller is someone you will rely on to provide you with assistance, updates, enhancements, add-on modules, training, advice, and troubleshooting. In evaluating a consultant/reseller, you should consider the following criteria:
- Do they have an accounting background?
- Do they understand your business requirements?
- Have they implemented such solutions specific to your industry/business?
- Do they provide implementation, training and ongoing support?
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