What to Consider before choosing Accounting Software?

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Whatever size of business you are – small, medium, large or multinational – it’s inevitable that you will need accounting software. However, when choosing accounting software, there are many things to consider before purchasing to ensure the product meets your requirements.

Business accounting software – considerations

Before choosing business accounting software, consider the following criteria to determine your requirements :-

  • is any interaction with other software needed, such as online payments
  • ability to handle foreign currencies?
  • are all payroll requirements covered (annual leave, sickness, long service leave, PAYE etc.)?
  • is there a need for multiple bank account handling?
  • stock control and reporting
  • task management such as work orders
  • are Customer Relationship Manager (CRM) facilities needed – e.g. customer contacts, sales records, etc.?
  • cross-department support, such as providing ability to separate financial transactions by department or cost centres
  • does the software provide all levels of accounting and reporting that we need regarding :-
    • invoices
    • reporting
    • chart of accounts
    • general ledger

The one thing that is often overlooked when choosing accounting software

Whilst all the above criteria needs to be considered when choosing accounting software, the one aspect that is too often overlooked is growth in capability.

For example, companies often purchase cloud-based software (rather than locally-based desktop accounting software) but are unaware of the concerns with cloud-based software :-

  • privacy
  • ownership
  • security

By considering the merits of an Enterprise Resource Planning (ERP) system when choosing accounting software implementation in a company, it’s more likely that present needs and future growth will be accommodated.

Quite often, ERP accounting software more adequately matches the intricacies and complexities of today’s corporate and enterprise technological infrastructures. This means that a locally-based ERP system will be more flexible, powerful and suitable for businesses today rather than a cloud-based system that may only suit one department in a company. A very good provider of such software is Sapphire One.

A good example of this would be a manufacturing business that has one software package for the Finance department, one for the Sales Department and another one for the Warehouse or Manufacturing Department. Not only is the ‘learning curve’ tripled – as each department needs to learn their own system) but there is often a real risk that all the software is incompatible – so no data can be shared.

By implementing a powerful but carefully-chosen ERP accounting software, that is locally rather than cloud based, both of these issues are solved.

  • You have the reassurance that your desktop ERP software is safe from security, privacy and ownership concerns of cloud-based software.

You have the reassurance that your ERP accounting software will encompass the needs of all your departments, without any incompatibility issues.

This will make your operations more efficient, save more money and increase your reporting capabilities so that you know exactly how well your business is running.

Conclusion : if you’re choosing business accounting software, make sure you’re considering an ERP system

If you think ‘too small’ when choosing accounting software – e.g. a cloud-based accounting software or a system that will only cover one department – then you will be costing yourself money in the future when you need to replace it.

Far better to consider an ERP accounting software that will suit all your needs now and in the future, whilst providing your business with a powerful, flexible and effective accounting software.