6 Steps for Selecting Your Company’s Accounting Software

Choosing the right software for accounting is one of the most important decisions that you can make and should be made carefully. This software will in one way or another affect your company’s cash flow, accounts, taxes and operations. Don’t put yourself in a situation where you must choose a suboptimal software and then cannot choose a better one.

Here are six key steps to take when choosing accounting software:

Understand Your Requirements

Before you start the comparison, you need to define your needs and expectations of the software.

Consider the following:

What are the characteristics that define the concept? Are they accounts payable? Accounts receivable? Inventory management? Payroll? Is cost control an essential factor of the project that has to be controlled? Enumerate what your business needs are.

What your reporting requires – Is it just financial statements and reports? Customizable reporting? Real-time reporting? Mobile reporting access? Identify what reporting capabilities are needed.

Cost –Another essential factor that you should consider is the amount of money that you are willing to spend on the software program, because when you have a budget approved, the number of choices you have to make is usually restricted.

IT requirements- Does your business have the proper hardware, networking, and IT support to put in the system? Is there a minimum standard that the two offerings must reach?

Future growth needs- You should also look at how your needs may change in the future if your business expands or if it becomes more complex. Can the software grow with your business in the future?

Evaluate the Top Solutions

After you have come up with a clear list of requirements, it is time to look for the accounting platforms that seem to offer what you need and are within your budget. Of course, only 5-10 options will remain in the initial list of proposals, but this is enough to make a choice.

Essential software packages to consider include:

– QuickBooks

– Xero

– Sage

– NetSuite

– Intacct

With each option, prospects should be informed of the features, capabilities, and benefits of the software, as well as the ease of using the software, the time taken to learn how to use the software and the advantages and disadvantages of using the software. This brings your list to 3-4 top options that you should be considering.

See Demos and Trials

Before making a decision, however, on which of the contenders is the best, apply for demos and free trials of the products on the list. Therefore, you will be able to gain a practical understanding of how effectively each platform meets the established criteria in real life.

Pay close attention to:

– The usability for your team

– Mapping of the framework to your procedures in terms of workflow correlation

– Reporting functionality

Such difficulties may also be resolved once the systems are actually used, even if only for a trial period. It is also important not to overlook the views of the actual learners/users who are the employees in the accounting department.

Compare Pricing Models

When it comes to the cost of the software, you don’t want to opt for the most expensive, but at the same time, you should not choose the software based on the price factor alone. The solution must meet all your needs before any other thing in the world.

For solutions that satisfy your requirements, compare pricing models including:

– Startup costs from one-time, high license fees vs. ongoing monthly subscription costs

– Number of licenses required by the users

– Many additional charges like payroll processing, inventory tracking, reports, and other similar services

– Implementation, training, and support costs; these costs are likely to vary depending on the nature of the change, the level of complexity of the change, and the number of employees that have to be trained.

Filter out options that are significantly cheaper to operate but have higher initial costs, and calculate the actual cost of ownership over the course of 3-5 years. This will, in turn, aid in defining the programs that are affordable and those that offer value.

Analyze the Overall Company Reputation and Its Stability

When planning to make a decision on the platform to use for accounting, ensure that you are getting it from ethical and customer-oriented vendors.

Research factors like:

– The number of years in business

– The board of directors, senior management, and other organizational leadership personnel

– Size of the company, the number of its customers, and its rate of expansion

– Online reviews and complaints are also an element of public relations

You are now engaging in a long-term partnership that requires trustworthy dependency. It is imperative to maintain vendor stability and customer demand satisfaction.

Make Your Final Decision

More than likely, with this type of research and practice under your belt, you have one favorite that stands out. Before signing any contracts, recap how this solution best aligns with all of your selection criteria:

– It has features that meet the requirements we have listed

– Platform is convenient for our team to operate daily

– On the Reporting and Analytics side, we are satisfied

– Pricing is an element that works within our budget

– Software vendors have been constantly rated as stable and reputable

Continuing with this positive attitude of increased efficiency with the accounting software will enhance its use and benefits. When you follow a systematic approach to the selection process, this indicates the right long-term platform for the expanding organization.