Accounting software is a must for any small business in order to keep track of revenues, expenses, customer information, and any other financial data. Accounting Software can divide in four categories.
A. Free tools : – Some company offers free tools and free tools comes with some limitations Like Quick Book. The free version only supports 20 accounts. For a growing company, free is not generally the right option.
B.Small Business Accounting software and Payroll: These are generally downloadable on the Internet or available off the shelf, and tend to be very user friendly and affordable. They meet most of your small business needs and provide you with the accounting tools and reports you will use on a regular basis. Example Tally, Busy, Munafa.
C. Business management tools:- these full-featured applications usually include other financial functions (CRM, ERP, billing, etc.) to run your business from end to end. The price point is therefore typically much higher, but you get an all-in-one solution to meet all of your business needs. Odoo, SAP are example.
D.Cloud solutions: These web hosted accounting applications take advantage of the accessibility and scalability of the Cloud. In some cases, the payroll and accounting vendors offer a more lightweight version in the Cloud as well. For example ZOHO.
Before taking buying design first decide you need an Online accounting or a small Business solution or an enterprise class software. There is a wide range of software tools available to help small and mid sized businesses with their accounting needs.
The five crucial mistake you should avoid before investing on your accounting software.
1. How will you be using the software? Do you simply need to run high level reports and track your expenses and revenues? Or is your business model complex, with many different product lines and inventory considerations? Talk to your accountant or bookkeeper who can help define your implementation goals and reporting needs.
2.Don’t compromise for Price tag. Companies with large staffs and multinational operations will want to spend a bit more coin for a system that can scale and integrate with tools from other lines of business. Additionally, enterprise-class accounting software enables you to build a unique system based on your company’s specific needs. They offer different options for different verticals, and can be tailored to suit various geographies and currencies. But if you opt for cheaper software, you’ll be stuck using a plug-and-play system that’s one-size-fits-all.
3. Can Use Remotely. If you are expecting that your business will grow then do not restrict your software in-house only. Cloud Base system will Keep you updated and reduce your investment in server and infrastructure. cloud-based solutions will still require you to pay a bit more as your needs grow, but the costs won’t be nearly as dramatic as with an on-premises system. if you can afford to upgrade across the board, or just feel more comfortable housing your data in your own data center, You can.
4. Be conscious about the database. Whether you choice on- premises or off Premises software, Your software must need a database. Mysql is free and Microsoft SQL need some licencing fees. Some software comes with there own database . For example Tally have their own database in .DAT format. It is recommended to use Open source database to avoid licencing fees.
5. Don’t forget HR Software. Combining Accounting and HR System Will Give you a broad view of how your Employees impact the bottom Line.You’ll be able to survive without integrating the systems, but your operations will be slower, less intelligent, and less automated than the competitors that heeded this advice.