Almost half of small business owners pay more than $5,000 to manage their accounting every year. Bookkeepers, software, and compliance all add up.
Of course, having the right tools in your corner can help. Hiring the right bookkeeper is important. Finding the right accounting software could save you even more.
There are so many different options on the market though. How do you find the best accounting software?
You can use our accounting software guide to make the smart choice for your business.
Review Your Business’s Needs
The first step in finding the best accounting software for any business is looking at what the business needs.
Most businesses will need ledgers for accounts payable and accounts receivable. A larger business may need to administer payroll.
Depending on your size and state, you may be subject to different record-keeping rules. Calculating taxes can become more difficult for larger businesses.
Your needs may also vary by industry. Financial businesses are governed by different regulations than those in other industries.
Compare Accounting Software
The next step to finding an accounting solution is to compare software options.
How do you find accounting software though? A Google search can help. Look for third-party reviews of individual software.
Many business sites will run through their top picks. They may even compare different products.
Finally, you can look for customer testimonials. Who uses this product? Do they recommend it?
Software Showdown
Now that you’ve found a few options, it’s time to compare business accounting software. Research each option and look at what’s offered. Be sure to clarify what’s included in a “basic” version of the software and what may be considered extra.
Rule out any software options that don’t offer what you need. A program that only calculates your taxes isn’t going to be much help if you need bookkeeping software too.
Suppose you’ve narrowed the field to Quickbooks vs Freshbooks. These are two very popular accounting tools.
Naturally, people ask, “Which is better?”
The answer almost always depends on the business’s needs. Quickbooks is an all-in-one solution. It’s great for established businesses, and those involved in retail.
Freshbooks is geared for freelancers and businesses that are just getting off the ground. It doesn’t offer as many options as Quickbooks, so a business may outgrow it.
Ask Your Bookkeeper for Their Accounting Software Guide
If you work with a bookkeeper or accountant, you should get their opinion. Chances are they’ve used at least one or two programs in the past. If possible, ask someone who has taken the enrolled agent exam prep course.
Their experience should be able to steer you in the right direction. They may be able to point to strengths and weaknesses of several programs.
They also may have a preference. If your bookkeeper is a diehard Quickbooks fan, choosing Freshbooks probably isn’t the best idea. It may mean your bookkeeper has to learn brand new software.
Software Adds up
When you invest in the right software, you can save money and keep better financial records. With the tips in this accounting software guide, you should be well on your way to making the right choice.
Today’s businesses have more technology at their fingertips than ever. Make sure you’re getting the most out of your apps and software with our tips and tricks.
