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Selecting the Best Accounting Software for your Startup

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In this modern age, if you are still using paper and pen to manage your business accounts, you won’t be able to keep your business afloat for a long duration. According to a report, nearly 82% of startups fail because of poor cash management. Perhaps, this is the right time for you to realize the importance of complete and accurate bookkeeping and invest in accounting software.

Having accounting software largely reduces the possibility of human error. Moreover, it also gives quick access to financial information in just a few clicks. It comes in handy for performing regular accounting tasks such as recording payments, tracking expenses, invoicing customers, etc.

Additionally, it also helps assess the financial health of your business by generating monthly reports that help analyze business performance.

However, choosing the best accounting software that caters to all your startup requirements can become a daunting task. Below are the few steps that will ease out this process for you.

#1 Make a List of the Features you need

The first and the most crucial step in your journey of finding the perfect accounting software should be to make a complete list of features that you need in your accounting software. For instance, you can compare this to buying a smartphone; one person might look for a good processor, while others might look for a good camera or screen.

Similarly, it would be best if you made a list of must-have features that your business can’t run without. Additionally, you can add some more features that will come in handy in the future and might benefit your company in later stages.

The way your company does business defines a lot about what types of features you should be looking for in accounting software. For instance, if your company only works with contractors, then you don’t need a payroll system.

If you sell a wide range of products, you might need inventory management, and if you make international sales, you may also require multi-currency transactions.

#2 Have a budget

The cost of accounting software depends on various factors such as storage space, mobile access, number of users, etc. Some of the accounting software companies provide cloud-based services, too, while others offer desktop-based accounting software. According to some experts, there’s this firm, Finvisor, that offers easy support and growth options for new businesses. So, if you think your business is growing rapidly, then you should buy premium membership as it will give all the essential features plus post-sales support too. Though, if your business is just in the early stages, then you can ask for a demo version or free trial also and buy a basic version later on.

#3 Look For Ease Of Use

What is the fun of having accounting software if you need a degree in accounting to use it? While your main focus should be on the features and pricing of software, you should also know how user-friendly it is. Ensure that the software you go with is user-friendly and provides accounting solutions to even those who are not so great with numbers.

Checking out reviews of best accounting software online about their UI interface and customer satisfaction will help in your quest. Go for software that has a good number of tutorials available online for training and natural learning.

You can also look for online communities where you can discuss the problems that you encounter while using the software with fellow users. Ensure that the software you go with provides support over various means – such as live chat, email, phone, and many more.

#4 Consult with your accountant

Last, before buying software, please consult with your accountant because they are going to use the software more often. Every startup is unique, and every software caters to different organizational needs.

The accountant’s experience of handling various software and their knowledge about your business will help you find the best accounting software.

Discuss with your accountant the long term plans of your business, and how the new software will help you fulfill those plans. Their advice will be essential to select software that will help in the growth of your organization. Your accountant might also help you set-up the software for your business.

Conclusion

Don’t stress out too much if you are not able to find the best accounting software. You can always start from the basic package and then buy the premium subscription as your startup grows.

But ensure that you do proper research because it’s not right to invest money and time in software only to find yourself switching to another software in just a few weeks.

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