Accounting Software

Many small businesses do their accounts on paper or using Excel. And while that’s a perfectly valid way to run your business, there may be advantages to switching to dedicated software. For instance:

• Accounting software can automate many tasks you perform by hand, like checking bank statements or sending late payment reminders.
• Accounting software gives you easier access to information that actually means something, so you can use it to make decisions based on facts.
• Good accounting software will help you meet HM Revenue & Customs requirements and keep you up to date as legislation changes. And, if you’re ever selected for an HMRC audit, you’ll have good records to show

Accounting software can be the financial hub of your company. You use it to keep accurate financial records and perform tasks such as:

• Creating and sending invoices
• Creating quotes and estimates
• Recording expenses
• Completing tax returns
• Checking cash flow or profit and loss
• Creating budgets and forecasts

Accounting software can automate many of the repetitive, manual tasks involved in maintaining your accounts.

• To use desktop accounting software, you must install it on your computer and run it there. All the data relating to your accounts is also stored on your computer.
• Cloud accounting software runs on the internet. There’s nothing to install on your computer. To access the software, you visit a website and sign in with a username and password. This means you can use cloud accounting software from virtually any computer (and usually tablets and smart phones, too), anywhere you have an internet connection.
• Traditionally, all accounting software ran on the desktop. And although desktop packages are still available, there’s been a significant shift to the cloud.
• Most accounting packages aimed at small and medium-sized companies now come in cloud versions, and the companies that make the software are focusing on developing and improving these cloud packages.
• Cloud accounting software tends to be more user-friendly and requires less technical expertise to set up. This makes it a popular choice.

All of your data is stored on the software provider’s servers. This offers numerous benefits over traditional desktop accounting software such as:

• The cost is more manageable
• You can use it anywhere
• There are fewer management overheads
• There is usually a mobile app

• It has revealed that experienced buyers were more concerned about who they would be working with over time, rather than just the product being used.
• The second time buyers found more comfort with high quality resources irrespective of the size of the firm.
• If you are using multiple ISV’s (independent software vendors), gain a clear understanding of the support methodologies and proposed staffing used by each vendor.
• Understand their software upgrade policies, the terms of your Service Level Agreement (SLA), if any, and the details behind your post implementation support.

Visions of a fully automated accounting and supply chain with real-time information reporting are certainly attainable, but they take significant amounts of time, money and effort.

Keep your objectives well defined, quantifiable and reasonable. Make sure that the goals are expressed in terms of business benefits and propose a verification method for the achievement of results. You will be much more satisfied with reaching these goals, than missing the loftier expectations set by the sales people.

Because of all the variables, this is one of the most difficult questions that will require the most investigation and effort.

• The best approach is to develop a clear, frank communication with vendors and diligently work to ensure that all aspects of the financial system are covered.
• Accounting software licenses are just the beginning of the investment; don’t forget to include implementation costs (both consulting and any temporary employees that might be needed), training (both time and materials), and hardware, networking infrastructure, support, maintenance, and software customizations.
• These costs need to be estimated not only for the primary software product, but also for any ancillary products that might be required
• Most accounting software publishers require that you pay annual maintenance costs in order to receive support (which is a separate charge) for their product.
• Don’t forget the hidden costs like ongoing training for new employees or upgrade costs for new versions. Both can add significantly to the total cost of ownership.