In this final\u00a0post of our series of becoming\u00a0more\u00a0financially literate\u00a0about\u00a0your\u00a0business\u2019\u00a0finances, we look at\u00a0how to go about choosing an accounting package that suites your needs.\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n
It is not just about accounting<\/em>\u00a0<\/p>\r\n\r\n\r\n\r\n As a management accountant,\u00a0I\u00a0get\u00a0excited about the\u00a0data that underpins financial statements.\u00a0One of the most important aspects of choosing an accounting package is the type of information that you want to\u00a0store\u00a0and retrieve.\u00a0It is not just about accounting \u2013 and you need to bear this in mind from the very beginning.\u00a0Even though\u00a0accounting for your daily transactions is the\u00a0reason you want an accounting\u00a0package, does not\u00a0mean that you need to limit your decision making to accounting only.\u00a0Remember, what you\u00a0put in is what you get out!\u00a0<\/p>\r\n\r\n\r\n\r\n The basics<\/em>\u00a0\u2013 or not so basic<\/em>\u00a0<\/p>\r\n\r\n\r\n\r\n Every accounting package comes with the basics, that differ slightly from one another\u00a0\u2013 but essentially serve the same purpose.\u00a0Most\u00a0accounting packages\u00a0come standard with the below modules, and others sell them separately, depending on your requirements.\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n Type of business<\/em>\u00a0<\/p>\r\n\r\n\r\n\r\n The first step to guide\u00a0your\u00a0decision making is the type of business that you\u00a0run.\u00a0Each industry has different requirements, and each business will differ from the other. Having an appropriate accounting system that gives you the ability to invoice faster or\u00a0order stock on time, could be the difference between your business and a competitor.\u00a0If\u00a0the\u00a0accounting package cannot handle\u00a0your needs, you may need to look for a\u00a0third-party\u00a0application that can.\u00a0\u00a0For businesses\u00a0that have a large or complicated stock system, it may be worth\u00a0using a system that is specifically designed to manage stock, and that integrates with your accounting system. The same goes for businesses\u00a0that use a point of sale system. As a business owner, you need to balance the cost of\u00a0third-party applications that can integrate with your accounting system\u00a0against the time saving and value add.\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n Accessibility<\/em>\u00a0<\/p>\r\n\r\n\r\n\r\n The second step is defining how you\u00a0want to access your accounting system, and where you want the information stored, backed up and protected.\u00a0If you choose an accounting package\u00a0that can only be loaded on your machine,\u00a0you will only have access on that machine. If your business grows and\u00a0you hire a bookkeeper, getting a second instance that links to your data can become quite messy.\u00a0Rather consider cloud accounting software \u2013 your information is securely stored, and you can access it from anywhere at any time, even from your\u00a0phone!\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n Ease of use<\/em>\u00a0<\/p>\r\n\r\n\r\n\r\n The final\u00a0consideration is the ease of use.\u00a0Some accounting packages are built for accountants, and others\u00a0are built for small business owners.\u00a0You want an accounting package that\u00a0you\u00a0are able to\u00a0use.\u00a0An easy\u00a0way to determine a\u00a0system\u00a0ease of use is\u00a0to look\u00a0at their training\u00a0resources \u2013 the more complex, the less easy to use.\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n Research tips<\/em>\u00a0<\/p>\r\n\r\n\r\n\r\n Don\u2019t rush the process \u2013 take your time in making\u00a0the right decision \u2013 you\u00a0do not\u00a0want to have to change your accounting system 6 months down the line. Rather\u00a0do in depth research and get the right solution.\u00a0\u00a0Here are some of things that you can do to aid your\u00a0research:\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n Finding the right accounting system is integral to the success and future of your business. It will also play a fundamental role in\u00a0the development of your financial literacy.\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n At 118, our mission is to support entrepreneurs to grow and scale their businesses.\u00a0We do this by using the latest in cloud accounting tools and machine learning to get the basics right as efficiently and effectively as possible.\u00a0Reach out to\u00a0us\u00a0now,\u00a0so that we can\u00a0help you make the right decision!\u00a0<\/p>\r\n","protected":false},"excerpt":{"rendered":"\r\n
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