SMBs Need to Compare Small Business Accounting Software

Accounting software provides a proven value proposition to companies of all sizes and in any industry. For the largest companies, accounting functionality is integrated into the Enterprise Resource Planning (ERP) software used to control and manage every aspect of their operations. Smaller companies are hard pressed to justify the cost of those comprehensive solutions; yet, they require an automated accounting system just as much as those big companies. With cost as a primary issue, small companies need to compare small business accounting software in order to identify the best solution for their requirements.

Compare Small Business Accounting Software by Beginning with a Needs Assessment

To effectively compare small business accounting software, a business must first assess their needs to establish which features and capabilities the software must have, which would be nice to have, and which are not required. Of course, price is always an issue when you compare small business accounting software, as well. There are dozens of accounting products on the market that range in price depending on available features and ability to accommodate high user and transaction volumes. The solutions are also available under different licensing models, including a server license, user license, shareware license, and open source license.

To host their account software, large companies require hardware able to process the highest transaction volumes and with huge storage capacity. Their accounting software manages every complex process, often for diversified organizations operating in multiple industries. It must produce hundreds of reports based on millions of calculations. When you compare small business accounting software, the options you consider need only perform basic tasks, such as sales order and purchase order tracking, expense management, revenue management, and reporting. Software for those basic requirements is a fraction of the price of more comprehensive programs. Your business should also compare small business accounting software to select the best value without sacrificing the functionality you need to grow revenue and profit.

Focus Your Comparison on Specific Functionality

Every business has unique requirements and different processes and workflows when they compare small business accounting software. The features and functionality in an accounting application you use will be different from another company. Some organizations want a program that can sort through customer and business receipts, while others have a need to ensure finances comply with governmental rules and regulations. Compare small business accounting software performing the functions your organization will most often use to maximize the productivity gains you receive. Only options that meet the needs of a business should be considered when you compare accounting software. By doing so, you do not overpay for extra features or purchase an inadequate solution.

Compare Small Business Accounting Software’s Financial Costs

Implementing small business accounting software, for a new user or as an upgrade from an existing solution, is an investment in company resources, focus, and time. When calculating the costs, you should recognize the financial costs of those distractions, including lost revenue and business interruption. Compare small business accounting software to identify solutions that are easier and faster to install, require less user training, and cost less in long term support.

Understanding your business needs and the alternative solutions is crucial when trying to make the right software choice as you compare small business accounting software. With needs identified, focus on those solution features that address your users. The analysis and evaluation process not only results in your choosing the best solution; it also educates the team members. Their increased understanding of the complex operations of your business should result in better decision-making as you compare small business accounting software. It’s a benefit that pays on-going dividends.