Things to Consider When Picking an Online Accounting  Software

Accounting software is one of the roles of technology in modern-day bookkeeping practices. It plays a vital role in business bookkeeping and financial strategies. Keeping accurate records of your financial transactions and expenditures is one of the most essential steps in developing a prosperous company. As a result, it is of the utmost importance that you choose an accounting platform that you can have faith in to accurately track your money while also maintaining the confidentiality of your data. The following is a list of the most important factors to consider while choosing accounting software that will work best for your company.

Choosing an accounting platform for your business

Whenever it is time for you to choose an accounting software, it is important to ask important questions. The answers to these questions will determine if it will be good for your business or not. The following are questions to ask yourself when checking out online accounting platforms. 

1. Is my sensitive data safe?

When you use cloud-based accounting software, your data will, of course, be safer than other software types. If you cross-check it, however, before purchasing your accounting software, you can work with the assurance that the data you work with is secure. Most business owners will avoid using an external server when storing their company's financial data. On the other hand, using cloud accounting software to protect the confidentiality of your company's data is a safer option.

2. Is it easy to use for accounting beginners?

On the market, you can find a wide selection of different kinds of accounting software. However, it may be challenging to put some of these into practice. The use of complicated accounting software may cause more problems than it solves. For example, it can result in decreased levels of productivity. You may need to spend significant time instructing your employees on using the programme. Alternatively, you may be required to hire a professional instructor, which will incur additional costs.

Therefore, choose one that has a straightforward operation. Straightforward accounting software will have an intuitive and straightforward user interface. Look for one with detailed instructions on how the data should be entered and submitted. You can assess whether or not a particular accounting software is simple to use by reading reviews that are posted online. You may also attempt testing out several programs so that you can get a better understanding of how they operate and the features that they provide.

3. Does it suit the size of my business?

If you have looked over the list of accounting software on Wikipedia, you will see that it includes a comparison of the software based on the market focus of each program. It implies that if you own a small business, you are required to get software from a company that concentrates on catering to the needs of small businesses. Some companies specialise in accounting software whose primary target audience is large-scale businesses. 

4. Does it include the features I need?

Repeatedly familiarise yourself with the accounting software comparison found on Wikipedia. You will be able to view the features of each accounting software. Adjust it to your requirements. Navigate to the website of the individual accounting software. Check out the list of their features. The computer program that is going to be the most useful to you is the one that is going to be the best fit for your needs.

5. Does it include the integrations I need?

It is important to exercise caution while making your choice of accounting software if you are interested in upgrading to the most recent version. Make sure the software you choose can easily communicate with the rest of the business applications you use. If you choose accounting software without giving serious thought to the long-term effects of your decision, it could be detrimental to the success of your company. It may throw off its normal functioning.

In addition, in the future, you may purchase more software products to increase your company's productivity. Consequently, it makes perfect sense to invest in software that is not only adaptable but also simple to integrate.

6. Does it provide easy access to support?

The transition to new accounting software, regardless of how straightforward it is to use or how sophisticated it is, is unsettling for everyone concerned. You should prepare yourself for the possibility that you or a member of the team will on occasion require the assistance of an expert. The user manual for the product is not likely to provide all of the answers to your questions.

When choosing between different software packages, one of the most important considerations to make is the quality of the customer service that is provided by the developer of the accounting software. The switch from the previous platform to the new one is going to be more difficult if the employees on your team are unhappy with the programme.

7. Does it include automation?

You can save significant time by utilising platforms that automate simple or repetitive operations on your behalf. This may involve automatic repeating transfers, auto-charging, or reminders to make payments. If you find it intriguing, you should look into the kinds of tasks that the various platforms can automate.

8. Does it provide comprehensive reporting?

Accounting platforms that provide regular and extensive data can assist business owners in maintaining control over their financial situation. It is vital to research the reporting capabilities of each platform.

9. Is it mobile-friendly?

The amount of time that proprietors of businesses spend conducting work on the go using their mobile devices is growing steadily. If this describes you, one crucial question to ask yourself when selecting a platform is whether or not it functions effectively when seen on a mobile device and whether or not it comes with an app that is simple to use.

10. Is it budget-friendly?

There is a wide selection of accounting software with varying price points. There is a significant number of businesses that offer a desktop-based solution for a one-time purchase price. Other businesses offer solutions known as software as a service (SaaS), which come with a recurring payment. Prices for monthly plans can range from ten dollars to one hundred dollars or more, depending on the number of users and the included features. If you pay the annual fee, you will almost certainly be eligible for a discount.

While other software is affordable, some programs cost money. Although choosing the software with the lowest price tag may appear prudent, cost alone should not be the deciding factor. In our guide on The Top Accounting Software for Business Owners, we highlight affordable and budget-friendly software for all small business owners. You must also take into account the product's level of quality as well as its features. For instance, software that includes more advanced capabilities, such as automatic payment reminders, sales tracking, project tracking, reporting and analysis, and inventory management, typically costs more. If you have a use for these functions, more expensive software will be well worth the investment.

Conclusion

Do not rush into purchasing accounting software; that is the single most critical thing you can take away from this article. Xero, Sage, and QuickBooks may share a visual appearance, but they are functionally distinct. Choosing the incorrect accounting software might cost you more than just your hard-earned cash. Furthermore, you will have wasted your time.  One of the most valuable non-renewable resources for small business owners is time; therefore, use it wisely.

Also, if you are a small business owner that needs an accounting company that utilises technology and advanced software, The Kalculators is here for you. We are a leading accounting company in Adelaide, South Australia. We are dedicated to making the accounting and bookkeeping aspects of your business easy and perfect. Do not wait till everything is in disarray, get in touch with us today. Experience outstanding accounting services in your business, and experience growth!

Frequently Asked Questions

Why do I need online accounting software?

Online accounting software provides numerous advantages over traditional paper-based or desktop-based systems. Some of the key reasons to select online accounting software include:

What types of businesses can benefit from bookkeeping?

Bookkeeping can be beneficial for businesses of any type and size. Whether a sole proprietorship or a large corporation, maintaining accurate financial records is essential for making informed decisions, managing expenses, and tracking profitability. Read more on how a certified bookkeeper can help your business in Adelaide. 

• Efficiency: It automates various accounting processes, reducing manual data entry and saving time.
• Accuracy: Online accounting software automatically calculates taxes, generates financial reports, and checks for errors.
• Accessibility: You can access your financial data from any device with an internet connection, making it easy to collaborate and share data with team members.
• Security: Online accounting software offers robust security measures to protect sensitive data.
• Cost-effectiveness: Subscription-based pricing models are often more cost-effective than traditional accounting software.

What features should I prioritise when choosing online accounting software?

When selecting online accounting software, it's essential to consider which features are most important for your business. Some key features to consider include:

• Invoicing: Look for software that allows you to create and send professional invoices, including automated reminders and payment tracking.
• Expense tracking: Choose a system that makes it easy to log and track expenses, allowing you to analyse spending and identify areas for cost savings.
• Financial reporting: Look for software that offers customisable financial reports, such as balance sheets, income statements, and cash flow statements, to help you make informed decisions.
• Inventory management: If your business deals with inventory, choose software that integrates with inventory management systems, allowing you to track stock levels, generate purchase orders, and generate accurate reports.
• Bank reconciliation: A robust bank reconciliation feature is crucial for maintaining accurate financial records and identifying discrepancies.
• Tax management: Consider software that offers tax calculation and filing capabilities, saving time and effort during tax season.
• Integrations: To streamline operations and improve efficiency, look for software that integrates with other business systems, such as customer relationship management (CRM) or point-of-sale (POS) systems.

Is online accounting software secure?

Online accounting software providers prioritise security to protect their users' financial data. Some standard security measures you can expect include:

• Encryption: Data is encrypted during transmission and storage, ensuring confidentiality and privacy.
• Two-factor authentication: Users often need to enter a unique code sent to their email or phone in addition to their login credentials to access their accounts.
• Regular Updates: Software providers regularly update their systems to address vulnerabilities and implement new features.
• Data Backup: Online accounting software often offers backup and restore options, ensuring your data is protected in case of system failures or data loss.

How much does online accounting software cost?

The cost of online accounting software can vary depending on the provider, features offered, and subscription plan you choose. Some common pricing structures include

• Freemium: Some providers offer essential accounting software for free, with additional features and capabilities available for a fee.
• Monthly Subscription: Many providers charge a monthly subscription fee, with pricing based on the number of users, features, and volume of financial transactions.
• Annual Subscription: Some providers offer discounted pricing for annual subscriptions, providing savings for long-term users.
• Custom Pricing: Some providers offer tailored pricing plans for larger businesses or businesses with specific requirements.

What are the downsides of online accounting software?

While online accounting software offers numerous advantages, there are also some potential drawbacks:

• Dependence on Internet connectivity: Access to your financial data may be limited or disrupted without a reliable Internet connection.
• Data loss: Data loss can occur if your internet connection is interrupted or the software provider experiences technical issues.
• Integration limitations: Some software may only integrate with some business systems, requiring additional software or workarounds.
• Training and support: Familiarising yourself with the software and obtaining the necessary training may require time and effort.