Managing the books manually will eventually prove difficult to maintain, especially if your small business is experiencing fast growth. If you can foresee that you will soon hire more employees, have more customers, and deal with bigger inventory, then it is best to switch now to the automatic, modern system of accounting. However, before choosing your first accounting software for small business, ensure that you have done the following:

One: Identify what you need

Your goal is to make handling your records easier, not the opposite. Hence, for your small business, choose accounting software that satisfies the basic needs of your business: customer records, invoices and statements, financial reports, VAT, sales tracking, inventory management, and others. Depending on the number of employees you have, you may also look for a payroll system. Free customer and technical support must also be available. Make sure that every aspect is considered and that your choice is compatible with the industry you are in.

Two: Think about money

You must look for an accounting program that is useful up to the last function without hurting your pockets. Some complicated systems that have several functions that you may not need are likely to be costly, so settle for one that is simple enough that it is easy to handle and cost-effective. Also, think about the mode of payment. If the program demands monthly subscription, then weigh that option well against your cash flow.

Three: Evaluate your experience

Choose an accounting program that has an easy learning curve. What you need is a smooth transition from the manual to automatic accounting, so opting for a program with easy-to-understand features will eliminate hours of watching or reading tutorials. If you have an accountant, ensure that the person has significant experience with such program.

Four: Consider ease of access

Choosing a cloud-based accounting program is beneficial if you are mostly on the go and you handle most of the areas of your accounting. Cloud-based accounting software has no distance and time barrier; you can access your data anytime and anywhere, letting you update everything whenever and wherever you want. This is especially useful if you allow others to access your data simultaneously from anywhere.

Five: Think about integration

Somewhere along the way, as your business grows, you would need additional features to create a robust accounting infrastructure. HR, CRM, banking integration, and industry-specific features will be essential in the future, so make sure that your first accounting software is scalable and updatable. Check if the program can integrate with third-party software that may be of use to your business.

Six: Try the software

Whether it is desktop- or cloud-based, make sure that the program can be initially used on a free-trial basis. Exhaust this opportunity to discover glitches in the program, then do your evaluation afterwards. It is important to keep a checklist in order to help with the comparison with the other software on your list. Make sure that you and your accountant are comfortable with the program by the end of the trial period.

Spending sufficient time in benchmarking your accounting software is essential in discovering the perfect partner to do your accounting processes with. Like in growing your business, there is no shortcut to finding a reliable accounting program, so do the above six steps to build the best accounting infrastructure for your small business.

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