Best Accounting Software

20 December 2011 StephanieE Accounting, Small Business Tips

What is the best accounting software available on the market? Good question! And though we’d all like to believe there’s an answer out there just waiting for us to find it, the truth is, there are so many different accounting software programs available for your business; the answer is largely based on your needs. So, what do you need to do to find the best accounting software for your business? Follow these steps to make sure you find your optimal solution!

Decide who will be involved.

For a small-medium sized business it typically includes the CFO/CEO, staff accountant or controller, IT person, bookkeeper, and often will expand to other employees. Since the decision will affect most employees, it’s good to include them, at least in some part. Of course, only the major decision makers will be involved in the actual search processes, but you can keep employees happy for years to come and make their jobs easier by considering their feedback in your decision.

Develop a ‘must have’ and a ‘wish list’ of features.

For your best accounting software, there are certain things you must have for your business, and other things you want but don’t need. Sort out your absolute needs from your wish list items and write them down on paper. Have others who are involved do the same, and then organize them neatly on one document, so it will be easy when you talk to vendors. Use this accounting software checklist to keep you organized.

Search for potential vendors.

Once you have your list in hand, you are ready to start your search for potential vendors. There are many ways to start creating your short list, whether it’s asking your accountant for advice, asking friends and business associates for recommendations, or searching on the internet. Searching on the internet can be a challenge, since there are so many Web sites available. Use FindAccountingSoftware.com and search by need to start narrowing down your choices.

Contact vendors.

Now it’s time to start contacting vendors and see who has the best accounting software for you, your business and its specific needs. Remember, every accounting software is the best in somebody’s eyes. But the only one that’s best for you is the one that can handle your specific needs, and remain within your budget.

Payroll Software: What to Consider Before Your Search

15 December 2011 StephanieE Payroll, Small Business Tips

If you are searching for new payroll software, you are either just starting up, or you have outgrown your previous system. Either way, there are certain problems you must solve with your payroll software! Before you begin conducting your search and calling vendors, take the time to consider these four important points. They will leave you better prepared for your search.

Issues.

Maybe you need to keep track of employee garnishments in a certain way, or you want to use direct deposit rather than issuing paper checks. No matter what your needs, be sure to write them all down on paper so you don’t forget them during your search! Use this check list to organize your thoughts.

Scale.

Several things can affect the scale of payroll software that will fit for you. If your budget is $2,000, then that’s where your search efforts should be focused. Having said that, you might find that your needs exceed your budget. Things that can affect the cost of your payroll software are the number of users, employees, and companies managed. Some of the features that typically affect cost are: direct deposit, tax filing method, multiple state tax filing, custom payroll setup, and more. Therefore start with a budget in mind, but understand that your needs may require you to adjust the budget accordingly.

Hardware.

Do you have the computers and/or networking capabilities necessary to run your payroll in-house? This is the major question you need to answer to help you decide whether to use in-house payroll software or software as a service. Some people like the control of having the whole system in-house, while others do not want the cost or responsibility of purchasing and maintaining hardware. If you are one who doesn’t want to deal with the hardware, then software as a service is probably the right direction to go. On the other hand, if you have the staff and hardware available, and you desire more control, then go down the road toward the payroll software option. Both in-house payroll and software as a service are extremely popular; it just depends on the needs of your business.

Future needs.

The reason many people switch software is that their payroll needs outgrow their software. They need to manage payroll for more employees, or need more flexible pay entry, etc. The list of reasons all depends on that company’s needs. You can prolong the life of your payroll software by projecting your needs for the next seven years or so. Ask yourself, will you expand to paying employees in other states? Will you add another business location? Will you want to offer employees debit cards or direct deposit for their pay? These are all things that should be considered, and then you should choose the payroll software accordingly.

Being prepared for your payroll software search can help ensure you get a payroll system that fits well and can grow with your company for years to come.

Accounting Software – Five Main Differences between Basic and Advanced Accounting Software

13 December 2011 StephanieE Accounting, Small Business Tips

With the startup of a new business comes a wide range of choices. Often, accounting software is not the most top of mind concern. However as a company grows, the need for a more robust accounting software package becomes evident. The basic software package that was installed upon startup lags behind and cannot keep up with the complexity of the growing business. Here are five main ways that basic accounting software packages differ from more advanced (or mid-range) accounting software.

Customizability: The longer you are in business, the more you realize that your business has a unique set of needs. For example, you want to show a special field on your invoice, or you want to start tracking information by sales category or by project. With a basic accounting software package, there is limited customizability, and therefore you must make due with a system that is made for the masses. Advanced accounting packages recognize that your business develops its own specific needs over time as it grows, and therefore allows for customization.

Data Limits: This is a major different between basic and advanced accounting software packages. A basic system will only allow for a finite number of things like inventory items, concurrent users, transactions, accounts, etc. Often this is the main reason for needing to upgrade to a more advanced system. When your business starts to require additional data storage, this is when a more advanced system can really make your life easier. Reporting: Again, for the sake of ease of use, basic accounting programs provide a limited set of reports for you to run. Yet your business may really need to see the data in its own way. For example, perhaps you want to include a line that shows the subtotal per item with tax. A more advanced program will allow for revisions to be made, and the reports can then be saved for later use, so that you can view the information in a way that is more helpful to you and your accountant.

Data drill down: How easy is it to view all of the details of a transaction when you are looking at your business numbers on a report? In a more basic system, you will likely need to close out the report and go searching through layers of information to find the details. By contrast, a more advanced system will allow you to view the transaction details that make up the number with just a few clicks, and will even allow you to edit the information on the fly.

Service: As with any product available today, the end result of paying too little means your service will be less as well. Many basic accounting software programs will defray service expenses by outsourcing their service to an overseas call center. More advanced programs provide more complete support services, with a variety of contact methods, and technicians with years of experience.

When choosing accounting software for your business, be sure to consider all of the above points so your system will grow along with your business.