Business Accounting Software: What to Do Before You Shop

Business accounting software took the place of ledgers, columns and pencils years ago, but selecting the right solution for your business can be a challenge. The vast array of accounting software available is enough to turn the heads of even the most experienced accountant. The right business accounting software for your business may not be selected by an accountant, but rather those who need to use the information the solution can produce.

How Do You Select the Right Business Accounting Software?

The key to selecting the right business accounting software is to first understand your accounting needs. Perhaps you don’t have an accountant on staff, but the company taking care of your books wants you to move into the 21st century and take advantage of the technology available to you. Maybe you do have an accountant, but he or she continues to argue that the process would be streamlined with the use of business accounting software. Your motivation is not nearly as important as understanding what you need your business accounting software to do.

Conducting a needs analysis is an important step to determining exactly what business accounting software you need to consider. When done correctly, your needs analysis will address needs from both a managerial and a financial standpoint. You must take the time to create an accounting software list to answer the obvious questions and those that force you to think about the answer. A diligent approach to defining your needs ensures that you are better educated and equipped to find a best fit business accounting software for your business.

Learn A Little Something About Business Accounting Software

One of the biggest mistakes you can make is to assume you don’t need to know anything about managerial accounting because the software will do everything you need it to do. In the technology field, there is an acronym: GIGO, which stands for Garbage In Garbage Out. When you deploy your business accounting software, you need to understand what it needs to produce the information you need or you will simply get garbage. Understand your data and have a clear picture of what that data means to your business.

Talk to your accountant, controller, C.P.A., etc., whether they are in house or provide consulting to you on an as-needed basis. Anyone versed in accounting that has done business with you in the past is a good source as they understand what you do from an accounting standpoint. They are a vital contributor when examining your business accounting software options as they tend to know what you need the solution to do and what will be unnecessary fluff features.

Communicate With Your IT Staff Regarding Your Business Accounting Software

If you are the IT manager, get your staff involved in the process – especially if they will be implementing and maintaining the business accounting software. The input from your IT department will help you to better understand your current hardware situation and what challenges you may face in selecting a business accounting software. Keep in mind these solutions capture and manage a significant amount of data, so disk space and redundancy are important.

Finally, know your budget limitations before you start closely examining any business accounting software. There is nothing worse than getting your mind set on the perfect solution, only to find that you can’t afford it no matter how you juggle the books around. Do your homework before you tie yourself up in the process and you have a much better chance of investing in the business accounting software that will be right for you.