Choose Accounting Software for Your Small Business

In the US, over half the workforce is employed by small businesses. However, it doesn’t mean that small businesses have no challenges. They often face a variety of problems related to their size, one of the biggest of which is the ability to be competitive. As a result, many new small businesses fail during the first years. To be successful as a small business entrepreneur, you have to adopt certain strategies. First of all, small business owners should keep up with the times and use in their everyday activities computers and computer programs that help to increase their business efficiency. These days, we can see the widespread computerization and automation that has covered all areas of activity, and it is impossible to be successful without involving in this process.

The most helpful computer program for small businesses is accounting software that records and processes accounting transactions. There are a lot of propositions on the market from various software companies and developers, so it is really difficult to choose the accounting solution that will meet the needs of your small business the best. The purpose of any software solution is to make it easier to run a business, but can also be a source of frustration and expense. The right computer program will help to control, manage and analyze a company's activity and improve its effectiveness, at the same time, the wrong software can throw the records of your financial transactions into a spin that will cost you both money and efficiency. Therefore, before making a purchase, any small business owner should make research the available accounting software for small businesses or take help from an independent expert.

The first thing which you should make is to create a list of features that, as you think, are necessary in order for accounting software to work well for your business. Separate them into two groups: needs and wants.

To determine features the accounting software should provide, it is recommended to figure out primary reasons to use them:

• Start out. Using an accounting software program for small businesses from the first day is beneficial and gives the company some advantages. 
• Growing business. A manual accounting system is inefficient in any case, even from the first day of your business activity, especially, if your small business is growing, or you plan to enlarge your business. 
• On-demand access. The accounting software system gives users an easily accessible database. Any detail about vendors and clients can be easily added to the system, including, contact information, credit terms, purchase history, and more. 
• Streamlining. Accounting software provides integration of all parts of the small business operations and enables automatic tracking of the company's expenses as well as inputting the data from other used systems: customer relationship management (CRM), point-of-sale (POS), enterprise resource planning (ERP), and others. 
• Complicated system. Small business doesn't need a complex accounting system with unnecessary features. If your current system is too complex, you need a software solution made for small businesses.
• Complying with the laws. Most accounting software systems are built in compliance with accepted accounting principles, tax laws, and other financial regulations. 

The second important thing on your way is you need to make a decision about how much you can spend on a new software solution, including needed hardware and implementation, and support. Once you know your needs and budget, start to study which software offered on the market meets your requirements and which has the most features from the list of your wants, even if they exceed your budget now. Many software providers offer packages with different complications, so you will have the possibility to buy additional applications in the future. From a wide range of accounting software for small businesses, choose a few that best fit your business necessities.

The next very important aspect that will affect your organization is a software vendor. How to find the right software vendor? Look into the background of each of the selected software companies. It is helpful to know how long every provider has been in the software industry and whether a selected IT company is growing or vice versa downsizing. Ask your potential vendors for references in your industry and be sure to ask their current and former clients about how long they have been or were a client and what they can tell about offered software packages and supply services.

Don’t also forget to ask your potential vendors about integrating the offered solution with your existing systems (if you use ones) as well as about

customization and scalability of their software products. Your business will grow and you might need to re-evaluate your accounting system to handle your company’s needs.

Choosing the right accounting software for small businesses is not an easy process and requires a careful approach.

Accounting software systems' characteristics for comparison

• Price – compare prices of different variants, including the recommended editor and other subscription levels such as basic, standard, and advanced packages, or simple, essentials and plus packages, or other offers.
• Hardware and software requirements – know the hardware and software requirements of each candidate on the best accounting software for your company, to compare them with the purpose to decide which of them is the most acceptable to you.
• Setup – discover and compare how quickly and easily you can set up each of the concerned accounting software systems. Also, define if you can do that by yourself or need the help of professionals; in the last case, how much their help costs.
• Use – find out how each of the concerned programs is easy to use and whether each or some of them requires from users any specific knowledge and skills in computer or software technologies.
• Features – compare features that each of the accounting software systems, you are interested in, provides to make a decision on which system best meets your current business requirements and future needs.
• Integration – check whether each of the concerned accounting programs can easily integrate with other software systems and what it is necessary for such integration.
• Mobility – discover whether accounting software systems, you are interested in, and provide mobile applications for tablets, smartphones, and other mobile handheld devices for use out of the office. Compare features that each mobile application provides to make a decision on which of them is the best for you.
• Training – recognize whether software providers, which computer programs you are going to use, offer the training service or videos for their clients.
• Support – detect whether software providers, which accounting software products you are interested in, perform the phone, email, or live chat support, whether their support is free or requires the hourly or another type of fee.