The world of small business accounting software can be a minefield for any business owner. However choosing the right package is one of the most critical business decisions you will make.
Here are the seven things you must consider before making a purchase that will help you achieve your businesses goals.
1. Scalability
Businesses change over time so it's critical that the small business accounting software you choose can change too. Some things that often change are the number of products and services offered and the number of employees. When you choose your package try and imaging the business in 5 years or 10 years time and how different it will be. Use this information to guide your purchase decision. It may well be better to pay a little more now for the software knowing that it can be easily upgraded when needed with minimum disruption and cost to your business.
2. Support
It is important that any software has great support for when something goes wrong (and it always does). Most major companies offer support but you also need to think about support in your local area. It's often much easier to have someone locally come in and do things you need done with your software than have someone trying to help you over the phone. Make some inquiries with other businesses about the package they use and who helps them.
3. Accountant Interface
It's most unlikely you will handle every aspect of your businesses accounting. Your accountant is an important factor in making the right decision. What software are they used to working with and what do they prefer? Can you easily supply them data and reports from your package without the need for any extra work (which you'll have to pay for). Don't be afraid to ask their opinion as they live and breathe this stuff.
4. Best Value For Money
Once you have selected the right package for your business you may as well get the best value. Shop around as the price can vary greatly and the product is exactly the same. Online merchants such as Amazon may offer better pricing because of the sheer volume of products they sell. However price is only one part of the equation so if their is great merchant locally with support or installation assistance this may be far more valuable.
5. Major Brands
There are two major players in the small business accounting software market. They are QuickBooks and Peachtree. Microsoft is expected to enter the market soon. I recommend choosing a major brand so that you can get regular updates and you know the company will be around as long as your business needs them.
6. Ease of Use
Ease of use is a personal thing but it is worth trying the software before you buy it if you can. Remember to get the person who will be the main user to test the software as well. Also consider how well the package can interact with other software you use. This is an advantage the Microsoft package may have when it's available.
7. Features Needed
I touched on this earlier when talking about thinking ahead as to where you business will be in 5 or 10 years time. Most accounting software packages come in several different versions. If you don't need certain features now and can't see a need for them in the future then don't buy them. The major differences are usually - number of users allowed, inventory management capability and number of reports available.
To sum up think ahead when planning your purchase of small business accounting software. You will make a much smarter business decision that will save you plenty of trouble and money in the future. Next week we will look into what software do you need for your small business. Thanks;)
Tuesday, July 22, 2014
Thursday, July 17, 2014
I believe that there are 3 factors that drive the success of small businesses. I will also post information twice a week on things I find that might be helpful to those of you out there that are thinking of starting a business.
1) Acquiring start-up capital
2) Finding customers
3) Accounting for, budgeting and controlling sales and expenses
The following resources will help your small business achieve these success factors.
Acquiring Start-Up Capital
An adequate supply of capital is essential as many profitable businesses fail because they don’t have enough cash to pay their employees and suppliers. But what is an adequate supply of capital? The only way to tell is by doing a significant amount of research on your potential market and formally documenting this in a business plan. I’m sure you know that a business plan is a very important document that is crucial to convincing your banker to lend you money.
The two ways to obtain a business plan
1) Do it yourself by amending a business plan template, or
2) Hire a professional to do it for you.
Obviously option 1 will be a great deal cheaper.
There are a few websites with high quality and free business plan templates. You can also find a directories that you can use to easily find a business plan writer in your city – where ever you live in the world.
Finding Customers
Finding customers is a difficult and expensive task for service business owners such as accountants, lawyers and plumbers. I believe that a cost effective marketing strategy for servicing business owners is to simply give all their personal contacts a few business cards.
You can find a few websites that have pre-designed business card templates. The diversity and quality of these designs are outstanding. In addition, you can obtain a significant saving by finding a printing service on the Internet. I found that you could get 2,000 full color business cards for as little as US $150.
Accounting For, Budgeting and Controlling Revenue and Expenses
Accurate accounting is very important for small business owners. It’s essential that you have timely access to information that could make or break your business. If stocks are running low – you need to know about it. If a large proportion of your debtors haven’t paid – you need to know about it. If you do not react to these situations quickly you may have a situation where you don’t have enough money to pay your employees – or worse still someone is stealing cash out the till.
People say "get the top this", and or "buy the best that", but what I have found is if you find the product that is tailored to your business type and needs you can never go wrong. The cheapest software cost is about US $89.99 and the most expensive software could run you US $1,499+.
Hopefully you now have an idea of some of the tools that you can use to grow and maintain your small business. Next week we will look into 7 Things to Consider Before Buying Small Business Accounting Software.
1) Acquiring start-up capital
2) Finding customers
3) Accounting for, budgeting and controlling sales and expenses
The following resources will help your small business achieve these success factors.
Acquiring Start-Up Capital
An adequate supply of capital is essential as many profitable businesses fail because they don’t have enough cash to pay their employees and suppliers. But what is an adequate supply of capital? The only way to tell is by doing a significant amount of research on your potential market and formally documenting this in a business plan. I’m sure you know that a business plan is a very important document that is crucial to convincing your banker to lend you money.
The two ways to obtain a business plan
1) Do it yourself by amending a business plan template, or
2) Hire a professional to do it for you.
Obviously option 1 will be a great deal cheaper.
There are a few websites with high quality and free business plan templates. You can also find a directories that you can use to easily find a business plan writer in your city – where ever you live in the world.
Finding Customers
Finding customers is a difficult and expensive task for service business owners such as accountants, lawyers and plumbers. I believe that a cost effective marketing strategy for servicing business owners is to simply give all their personal contacts a few business cards.
You can find a few websites that have pre-designed business card templates. The diversity and quality of these designs are outstanding. In addition, you can obtain a significant saving by finding a printing service on the Internet. I found that you could get 2,000 full color business cards for as little as US $150.
Accounting For, Budgeting and Controlling Revenue and Expenses
Accurate accounting is very important for small business owners. It’s essential that you have timely access to information that could make or break your business. If stocks are running low – you need to know about it. If a large proportion of your debtors haven’t paid – you need to know about it. If you do not react to these situations quickly you may have a situation where you don’t have enough money to pay your employees – or worse still someone is stealing cash out the till.
People say "get the top this", and or "buy the best that", but what I have found is if you find the product that is tailored to your business type and needs you can never go wrong. The cheapest software cost is about US $89.99 and the most expensive software could run you US $1,499+.
Hopefully you now have an idea of some of the tools that you can use to grow and maintain your small business. Next week we will look into 7 Things to Consider Before Buying Small Business Accounting Software.
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