Accounting software can be invaluable for any business, regardless of size or industry.
This has resulted in a growing market for accounting software, making the task of choosing a well-performing accounting solution quite a challenge.
Every vendor provides different solutions with different levels of functionality and scalability at different price points.
Deciding on the right features and the ideal accounting software for your organisation should therefore come down to understanding which solutions are available on the market, what they provide, and how they relate to your business needs.
Here’s why it’s important for your business to have an accounting solution in place and what capabilities you should look for in good accounting software.
The Value of Accounting Software
Some people may not think accounting software is required for their business, depending on whether they have internal accounting/bookkeeping staff or use an outsourced firm as and when they need it.
However, having access to an accounting software solution can be highly beneficial for internal teams and help to both increase productivity and minimise expenses.
We’ve previously discussed how to calculate the ROI of your accounting software, but there are also other benefits to implementing an established, reliable accounting solution.
It will allow your business to perform larger-scale accounting tasks more frequently and accurately without having to hire additional members of staff.
Accounting software is easily accessible for anyone, even non-accounting specialists, which can ease the workload on your finance team and remove to need to recruit or outsource work during busy fiscal periods.
It also ensures transparency and accuracy by presenting accounts through intuitive dashboards, providing accurate calculations, and avoiding human errors.
Accounting software performs the most essential functions that help companies fulfil their daily tasks, but it also organises and analyses accounts data to provide greater financial insights.
Likewise, it can help make an accounting team’s work easier through tax compliance features, particularly in software that is dedicated to payroll assistance, as well as automated transactions for accounts payable/receivable.
The result of this is that your business accounts team will not only be more productive but also more credible and able to process transactions faster.
Learn More: The Pros and Cons of Xero Accounting System.
6 Essential Features of Good Accounting Software
Now that you understand the benefits offered by high-quality accounting software, it will be much easier for you to determine what type of solution your company will need.
To ensure that your company finds reliable and efficient accounting software that will accelerate your company’s growth and achieve its goals, we’ve gathered six essential features to watch out for when undertaking an accounting software procurement project.
Modern accounting software is often designed with maximum ease of use in mind. However, it’s still important to look at the software’s interface in detail to determine if it is intuitive enough to be used by anybody in your team – even those who are not accounting or tech-savvy.
In addition, your choice of software should also be flexible and highly functional. We recommend options offering multi-dimensional reporting features that enable your team to come up with reports that are customised according to your company’s needs and targets.
Integrate billing and invoicing features with inventory management
Accounting systems will have different basic functions, and almost all of them will include billing, invoicing, and/or inventory management. However, if you have all of these basic features integrated into one system, you’ll be able to cut a significant amount of time transferring or migrating data from one system to the other.
Identify and prevent errors
Accounting solutions can bring more accuracy and efficiency to your organisation. This means that errors can be minimised, if not eliminated. As such, the software you choose should have features that automatically check for errors (dynamic ones). For example, when someone places an order for a product that is currently out of stock, the system can identify the action and send an immediate alert. We also recommend looking for features such as automatic calculation, which are essential in preventing users from making errors.
Easily connect with stakeholders
Your company needs accounting software that makes it easy for you and your finance team to coordinate with customers, suppliers, banks, and all stakeholders. Documenting and checking accounts, bank statements and balances, monitoring and managing credit, and tracking payments and due dates with suppliers and customers are all essential factors in proper accounting management.
Secure sensitive data
Financial information is sensitive data, and it should never fall into the wrong hands. You should always choose accounting software that provides complete and solid security features. Purchasing from reliable vendors – one that has a trustworthy reputation in the industry – should also be a top priority for you. Look for user-based access features, as this is always a good security measure. This means that the software can only be accessed by you and those in your finance team with a permit. Additionally, their access is limited only to what their tasks are. In other words, the person assigned to payroll management will only have access to data relevant to payroll needs.
Choose the Right Accounting Software with YourShortlist
When embarking on an accounting software procurement project, you should determine how a new system will help you manage day-to-day accounting processes and achieve your company’s long-term financial goals.
Once you’ve settled on your requirements and key criteria for what you want your accounting software to achieve, you can begin to review and compare options.
Rather than waste time and money sorting through hundreds of potential options, why not speak to someone that can manage the procurement process, so you don’t have to?
At YourShortlist, our goal is to make technology procurement simple, transparent, and cost-effective by matching businesses with the right software providers.
We are recognised as a trusted, independent intermediary to IT buyers, with a rapidly expanding network of over 2400 technology Partners providing solutions in accounting, AP automation, ERP, cyber security, cloud migration, and more.
If you’re searching for the best accounting software for your business, discuss your requirements with a member of our team today to receive your free, bespoke shortlist of trusted software Partners.