Whether you are self-employed or a business, managing your accounts correctly is crucial for evaluating the state of your trade by offering an exhaustive and rigorous view of its financial situation. All management instruments are based on finance, so having good accounting software helps to make better decisions. But knowing where to begin in choosing the right package can be daunting, so here are our six tips for choosing am accounts software tool.
Accounting software is one of the essential programs that every company must have, regardless of its size and nature. Its function is to systematise all the accounting processes of a company, making the data and reports more accessible and easier to consult, analyse and use.
Many of the financial accounting packages available today offer a free trial period, so it could be of huge benefit to “try before you buy”, and see which one works best for you.
With so many different packages available in the current market, the difficult thing for many companies is to choose the right one. Usually, the most used accounting programs are those that, a priori, offer the best results. However, that might not always be the case, so here are the six things we think you need to look for.
Tip 1 – Ease of use and cloud computing
One of the characteristics that must be paid the most attention when choosing any program designed to streamline the tasks of a company is its ease of use.
In the case of accounting, it is no different, since the friendlier and more intuitive it is for the user, the more benefit will be obtained.
This simplicity to understand and use is associated, in turn, with greater agility when carrying out the tasks assigned to the accounting department, so workers will be more productive.
In addition, opting for simple interfaces allows it to be used without having previously received specialised training. In other words, in many cases, the simpler the package is to use, the better use you should get from it.
On the other hand, Cloud Computing is now one of the essential requirements for any current accounting program. This type of software works in a virtual environment, which is accessed from any device with an Internet connection and is available 24 hours a day, 365 days a year, and without the risk of local equipment failures.
In this sense, it is not necessary to go to the office, since the program is not installed on the hardware.
Cloud computing is today one of the main resources of digital transformation and has great advantages, such as the aforementioned accessibility, but also flexibility, security, automatic updates, and scalability, among others.
Tip 2 – Functionality and price
As in any other investment made for the company, functionality and price must be valued. It is essential that there is a balance between the benefits it offers and its cost, but above all that it adapts to the needs of each particular business, both present and future.
In this sense, it is very important that the program is scalable, since it will adapt to the company as it grows, without the need to change the program later. Of course, this scalability may increase the subscription cost, but it is pointless paying initially for more than you need.
Tip 3 – Legal update guarantee
Another very important requirement that any accounting software must meet is that it guarantees legal updates.
Otherwise, any error in the accounting balances or in the generation of out-of-date models can lead to the company being penalised with fines.
Therefore, always having a provider that is a specialist in this type of software and that has proven experience with your accounting programs will be necessary.
Tip 4 – Automation
The more automated the processes are in the accounting program (massive functions, automatic bank reconciliation…), the better.
Not only will they be faster in handling information or generating reports, but there will be less possibility of making human errors.
Tip 5 – Possibility of working collaboratively with an advisor
A very advantageous option that some accounting programs allow is the possibility of working collaboratively with the company’s advisory services.
This streamlines procedures, the flow of information and saves having to perform some tasks twice.
Tip 6 – Information security
Last but not least, it is essential that this type of software offers information security guarantees, so that there is no possibility of leaks.
It is always advisable to choose one of these specific programs with sufficient experience, which is endorsed by different users.
Following these tips, an accounting program will be chosen that meets the essential requirements of any company.
It should be remembered that accounting records are subject to strict regulation, so current principles and regulations must be respected.