You have probably heard the song, “Love is a many-splendored thing.” Well, your company’s accounting software should be, too. That is, you have to make sure your system does all of the big and little things necessary to efficiently and accurately track your financials.
It is not only about revenue
Annual revenue does not always dictate what software you should acquire. Some $50 million a year businesses will do just fine using a less expensive accounting software package, while some $5 million businesses will require a much higher end product. The key is to thoroughly review your accounting processes, tax-reporting requirements, transaction volumes, staff’s abilities, and management reporting needs.
The future matters as much as the present
Another important factor: your company’s growth rate. If you are growing 20 percent or more per year, you must have an accounting package that can grow with you. Otherwise, converting to a new accounting system every couple of years will be a painful and expensive process.
Your users matter the most
You will never get maximum value out of accounting software that your employees cannot fully use. Better systems provide on-screen tutorials that walk users through a sample company’s transactions and offer prompts for completing certain tasks. Extensive help should be available on-screen as well as via a ’24-7′ phone number. Some providers even provide support through instant messaging.
You are not just tracking, you are analyzing
The system should allow you to readily generate monthly and annual accounting reports. This means being able to easily record and access bank reconciliations, recurring transactions, and aging of accounts payable and scheduling of payments. A better package will customize reports that include instant unadjusted trial balances, income statements, balance sheets, cash flow statements, statements of retained earnings, and more.
A second opinion is always helpful
So, do you love your current accounting system? If you cannot say ‘yes’ unequivocally, give us a call. We can review your existing functionalities and make recommendations regarding whether and how you should upgrade.