Business finances can be complicated. However, implementing the right accounting software can help alleviate some of the stress that comes with handling your business finances. After all, it can help automate certain transactions and financial processes, and give you an overview of your financial health. This allows you to make informed business decisions and easily file accurate tax returns.
Still, choosing the right software can be difficult. This is because there are countless programs available with unique features, pricing plans, and learning curves. In this blog, we’ll guide you through some options, to help you make the right choice.
Start by defining your business needs
So how do you choose the right accounting software? To start with, you need to consider features, usability, and cost. You need to know what you want the software to do for you. Are you interested in accounts payable and receivable functions? Do you need to generate several reports or send invoices? Some software is designed for inventory tracking, project management, payroll, or other functions.
Also think about the number of users that need access to the program. Remember that cloud-based systems can be accessed from anywhere. However, desktop software is usually only accessible on a specific location. And don’t forget about mobile applications!
You’ll also need to factor in the cost. Sometimes, software that seems perfect costs more than you can afford.
And that’s not all. Other factors to consider include:
- How easy is it to use? Remember that you’ll need to learn to use any new software properly.
- Does it integrate with your bank accounts? Some platforms can integrate directly with your bank accounts, while others need third-party connectors.
- Will it ensure data security? You’re dealing with sensitive information, so you have to avoid potential risks.
Now that you know what to consider, let’s take a look at a few popular platforms.
QuickBooks Online
QuickBooks is aimed mainly at small and medium-sized businesses. It offers on-premise and cloud-based services that allow businesses to accept payments, manage invoices, payroll, etc. Usually, this software is used in the following industries:
- Construction.
- IT.
- Finance and accounting.
- Healthcare and medicine.
QuickBooks’ distinguishing features include automatic payment reminders. These simplify following up on past due accounts receivable, and sending and requesting payments.
Xero
Considered a QuickBooks alternative, Xero is a cloud-based accounting software built primarily for small and medium-sized businesses. Top industries that use it include:
- IT and software.
- Financial services and accounting.
- Marketing and advertising.
Xero is a service-as-a-software model. This means that it is sold based on the number of users. However, it has a relatively low learning curve. Some of its notable features include bill payment, expense claiming, accepting payments, and tracking projects.
NetSuite
This software is designed for medium to large businesses. NetSuite is advanced, and comes with comprehensive, robust features. It can help manage a number of operations. These include everything from inventory and shipping, to billing and human resources. In fact, some of its key features key features are a transparent audit trail, tax management, fixed assets management, inbuilt financial reporting, and flexible payment process. However, because of this comprehensive and feature-rich nature, the software can be difficult to learn and master.
NetSuite is used in a number of industries, including:
- IT and computer software.
- Retail.
- Internet.
- Manufacturing.
Which accounting software is right for your business?
Are you still undecided about the right software? As we’ve discussed above, there are several things to consider when choosing accounting software. But we can help you! At Fusion CPA, we can help you make the best choice based on your needs.
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This blog article is not intended to be the rendering of legal, accounting, tax advice, or other professional services. Articles are based on current or proposed tax rules at the time they are written, and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.
