“All animals are equal, but some animals are more equal than others. ”
This is a quote from ‘Animal Farm’ by George Orwell and it explains disparities that exist in society.
And come to think of it, disparities also exist among accounting systems.
Every accounting system is not the same. And fairly, every business is not the same either.
Every business has its own set of unique needs, and therefore each business requires a different accounting system that can cater to those needs.
What separates one accounting system from another? In a nutshell, it’s the functionality, the bells and whistles, and the whatnots.
1. The functionality
When choosing accounting software, the first thing you should consider is functionality.
It isn’t all accounting software that can do everything you need.
You’d have to find software that has the functionality you need for your business.
2. The bells and whistles
After functionality, another thing to consider is features.
While it’s common to find mainstream features in almost every accounting system out there, there are cases where you’ll need a specific feature for your business, which not all systems may have.
In some cases, you may not realise that you need a feature until you’re at the point of using the software or when you’re faced with a challenge that the software can’t help you with.
3. The whatnots
And then there are other things to consider such as ease of use, price, support, and integrations.
This means when researching which software to pick, you should look beyond just the feature and functionality.
Look at the “whatnots” of the software, including the quality of the support you’d be getting.
For instance, for a financial system that requires working with an implementation partner, you should consider their availability, expertise, and quality of service.
The “Main Thing”
All in all, when it comes to choosing accounting software, the main thing is your requirements.
You should consider what you need the software to do for your business and pick software that beat those requirements.
For example, if you’re a small business, you might not need all the bells and whistles that come with more advanced accounting software. All you really need is something that can track your income and expenses, and maybe generate a few basic reports.
If you choose otherwise, you’d end up with an overkill that’s not only more expensive but also harder to use.
On the other hand, if you’re running a medium or large-sized business, you’ll need something much more robust; a system that can handle a greater volume of transactions and produce more detailed reports.
Here are some things to consider per your business needs:
1. The size of your business: as mentioned above, a small business can get by with a less complex system, while a large business will need something more robust.
2. The type of business you have: certain businesses have specific requirements that must be met by their accounting system. For instance, if you’re in the manufacturing business, you’ll need a system that can track inventory levels and costs.
3. The number of transactions: if you have a high volume of transactions, you’ll need a system that can handle that volume without slowing down or crashing.
4. Multi-currency requirements: if you do business in multiple currencies, you’ll need a system that can handle that.
5. Multi-company consolidation: if you have multiple companies that you need to consolidate into one financial statement, you’ll need a system that can do that.
6. Reporting needs: what kind of reports do you need? How detailed do they need to be? Do you need to produce reports on a daily, weekly, or monthly basis?
7. Integrations: what other software do you need to integrate with your accounting system? For instance, do you need to integrate with your point of sale system or your payroll system?
8. Compliance requirements: are there any specific financial reporting or regulatory reporting compliance requirements that your business needs to meet?
9. Educational requirements: do your staff need training on how to use the accounting software? Is there sufficient documentation available?
10. Support needs: if you’d need help using the software or if you run into problems, is there sufficient support available? Is it easy to get in touch with someone who can help?
Conclusion
These are just some of the things to consider when choosing accounting software for your business.
The bottom line is that there’s no one-size-fits-all solution; the best accounting software for your business depends on your specific requirements.
So, do your research and choose carefully to ensure that you get the most out of your investment.
If you’re in the market for accounting software and are considering SunSystems, be sure to get in touch with us now for a free consultation to see how we can help you.