Choosing bookkeeping software for your small business

Before evaluating products and features, you may want to consider these 5 points:


1. Spend the time to define your requirements

The first step is to decide what you need. Any accounting software will perform the core accounting functions of general ledger, accounts receivable, accounts payable and the cash functions. But often you need more, depending on your industry and on how your business works.


2. Consider “learning costs”

You can easily find good accounting software for free. However, even free software isn’t totally free. Learning software is often a bigger cost in time and effort than the initial cost. You should consider the ease of use of the software, your experience in using a particular tool and take into account the training costs in case you have staff.


3. Help and customer support

You’ll need some help to learn the software and you’ll likely need on-going support too. Is the only help available a manual? Is it through a toll free number? Maybe you can get local help? Often local accounting firms are experts on the major software products.


4. Consider whether you can upgrade

As your business grows, you may need more features in your accounting system. You can’t forecast now what will happen in two years, but you can choose software that you can upgrade to more power smoothly. If you have to switch to a different brand, you get to pay the start-up training costs all over again.


5. Make the most of it

Generating tax forms and government documents is one of the goals of a bookkeeping service software package. That’s staying out of trouble. But accounting is much more powerful than just staying out of trouble. The right software can help you produce reports that help you make decisions. Better information can save you money and lead to more profits.