Starting a new business takes a lot of effort. Part of that ongoing effort will be tracking the income and expenses generated by the small business. There are many small business financial software products capable of meeting your needs. Deciding on the best solution for your small business is the goal of this article.
It is important to determine the financial accounting needs of your small business when looking for software. Depending upon the type of business that you operate, the following functionality needs to be considered:
- Track Customers and Sales
- Invoice Customers
- Manage Inventory
- Process Credit Cards
- Create Budgets
- Perform Payroll Functions
- Business Tax Reporting
- Paying Bills
Most of your time will be spent entering data into your business accounting software solution. An important consideration is the bank that you do business with. Most provide data feeds, verify that their format can be uploaded into your financial accounting software. This can save you hours of effort.
With hard work and determination, your business will grow over time. Pick an accounting software solution that will grow with the business and meet your needs in the future. This can be accomplished by selecting a product with an upgrade path with more options or a product that you can add modules to later.
Their are accounting solutions that are available online using a web browser or by installing and using on a computer. If you will be out of the office for long periods of time, an online solution may be a better choice.
Depending upon the structure of your business, taxes can take lot of time on an ongoing basis. Does the software help generate tax forms that need to be filed on a monthly or quarterly basis. At the end of year tax time, can you create an extract that can be pulled into your tax software. Or if you use an accountant, does the software allow you to create an accountant copy for the accountant? Tax time is stressful enough, these features can be a great time saver.
As your business grows, it may be necessary to allow additional users to enter information or perform other tasks to bill clients etc. Does the software allow you to restrict the access for users? Some users may need access to all functions while others will only need limited functionality.
Talk to people in a similar business to find out what small business financial software they use to track their business. Ask them about the features that save time, what needs improvement and if any are missing. Most likely you will not find a software solution that is perfect, but you will be able determine the software that best meets your small business needs.
Some final considerations to make:
- Will you need support? Check into the support options of the accounting software and estimate any additional costs that may be incurred.
- Do not pay for features that will not be needed.