Do You Need Small Business Accounting Software?

If you’re anything like me then you dislike with a vengeance doing your accounts and taxes. So how can you make this process easier, less painful, and cut your accountancy fees? Well buying an accounting software package is one way.

First of all, you need to decide whether you are going to keep your accounting records manually, that is using pen and paper, or whether you are going to computerize the process. If you decide that computerizing the process is the way to go then you need to decide whether to buy an accounting software package.

Examples of packages are Sage or Quicken. You can also determine whether a spreadsheet, such as Microsoft Excel will suit your needs or not. As a general rule if you are a cash business that just needs to record income and expenditure then you are better off using a spreadsheet.

You should choose accounting software package if:
• You extend credit to customers and you buy goods with credit

• You process in excess of 50 transactions per month

• Your business is an Incorporated Company

• You are computer literate or are willing to learn!


Before choosing the small business accounting software, speak to your accountants. It may be cheaper for you to use the same one they do because they can advise you how to get it up and running and will be on hand to answer questions. Plus, at your financial year end when your accounts need preparing, having the same program will save your accountant time and save you money.

Most accountants use software in their office to process the bookkeeping for their clients and will have a working knowledge of the accounting software package they use. 9 out of 10 QuickBooks accountants recommend QuickBooks to their clients.

It is also recommended to do some research yourself. You may be able to obtain a demonstration disk or download of the most popular accounting software packages and this will give you an idea of how they work and if they suite your preferences.

The cost may also be an issue, so you need to decide on your budget. Consider how likely your business is to expand. You may outgrow that accounting software quickly and end up buying the more expensive one anyway.

Small business accounting software providers may also try and up-sell you a maintenance contract. Save your money! In my experience the established software providers will not have bugs in their systems. They will also try and upgrade you to the next version on a regular basis, but if the software is doing everything you need then there is usually no need to upgrade.

Of course, you could also pay a person to do your accounts for you, either your accountant or a bookkeeper. That way you don’t have to do it yourself at all and you can focus on running your business better. But if you like the control, find out what software you need for your small business accounting.


About the author:
This article is copyrighted © by Jakki Francis. Please feel free to use it in it's entirety including copyright information and information about the publisher. Jakki Francis operates Accounting Software Reviews.

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