If you are a starting a new business or you are already a business owner then such a software is essential. New or Small businesses do not usually have a CFO or an accountant/bookkeeper as a staff member and in these cases, a good accounting software can make a huge difference for you in terms of both streamlining processes from an early stage and giving you immediate visibility to financials. By using an accounting system, you will also perform financial tasks that are usually done by an accountant and this will help you to reduce your expenses. Naturally, you can decide to write your ledgers manually or maintain several spreadsheets but this can only last for a limited period.
In one of my previous posts called “Choosing an Accounting Software“, I described the main things that a company should consider when their business requires them to select a new accounting software. Although these guidelines apply to all business types and sizes, there are still few more elements for you to consider if you are a small business.
you naturally need a software with the basic accounting capabilities like GL, Financial Reporting, Accounts receivables and payables, Bank reconciliation and etc.
In terms of functionality, you naturally need a software with the basic accounting capabilities (GL, Financial Reporting, Accounts receivables and payables, Bank reconciliation etc.). You may also want to include processes like tax preparation, quotes creation, payroll processing and mobile access as part of your requirements.
Since most of the Accounting software have this functionality and you want to avoid the heavy and complicated enterprise accounting systems, you should narrow the search by asking the vendors the following questions:
- Do you provide a web-based solution (aka SAAS)? This will allow you to minimize your IT costs
- Do you have a monthly subscription program? – it is easier to control you expenses
- How do I know that I pay only for the features that I use? – the software should have a module-based program
- What are the support programs you provide? You will need support, both technical (how to operate the system, password resets etc.) and financial
The following table summarizes all these elements and gives our recommendation for the preferred accounting software for small business. In my previous articles the recommended software were categorized either by company size or by sales volume. In this case, I will try to categorize them by industry, where industry-related modules are applicable:
|Functionality||Small Business (less than 10 users)|
|Recommended Software||SAP Business One||BillQuick||QuickBooks|
|Deltek Ajera||SAP Business One||BillQuick|