Accounting Software for Small Businesses – Know What You Need

The way companies handle their bookkeeping has changed dramatically in the past 10 years. Gone are the days on manual invoices and purchase orders. People are no longer using a rolodex to keep track of their customers, and they aren’t using spread sheets to monitor inventory… well, at least not companies who are focused on growth.

If you haven’t already, now is the time you should start looking into accounting software for small businesses. Not only can accounting software save time with your bookkeeping tasks, but it also helps you make key business decisions by showing sales forecasts, helping you manage inventory, pinpointing what areas of your business are most profitable, and more importantly it helps you manage your accounts receivable and cash flow to minimise bad debt – limiting your need to hire debt collectors to recover money owed to you.

Beware, not all accounting software is created equally. Every day there are more and more software packages available for small and mid-sized businesses. Before purchasing any software, take time to sit down and make sure you know your business’s accounting needs. Take a look at what both your financial and managerial needs. While accounting software takes a lot of the guess-work out of the accounting process, you still need to have a basic understanding of how your numbers work. Accounting software and financial management software run on the “Garbage In, Garbage Out” rule, meaning you need to make sure the information being entered into the system to correct in order to get accurate information out of it.

Also take some time to hash out you business needs, there are different types of software that are tailored to better fit specific industries. Manufacturer’s can benefit from an accounting system that has an inventory add-on or ERP modules that handles parts and labor. Retail stores can purchase a point-of-sale and inventory program. Not all accounting software systems have add-on modules that fit every industry, so it’s important that you take a look at your individual needs.

It also helps to know about the different products available to you:

Payroll and accounting software – provides basic accounting tools to process payroll and put together financial reports

Business management software – include more functions to help you keep track of business and financial data like point-of-sale, inventory, Customer Relationship Management (CRM), and Enterprise Resource Management (ERP)

Web-hosted software – These accounting applications are hosted online and allow you to access your information anywhere you have internet connection.

With all the different types of software available to you, it’s important that you take your time researching your needs and what software best fits them. Don’t rush into buying accounting software that isn’t right for your business or can’t grow with you.

And as always, don’t be afraid to ask for help from people who know accounting software systems inside and out. While there are extra costs involved in going through a value-added reseller, there are also extra benefits. VARs are able to help you pick the right system, install it, set it up to your specific needs, and even help with training.

If you’re still opening up Word documents and spreadsheets to create invoices and track accounts receivable, it’s time to start looking into an reputable accounting software solution.

Are you tired of chasing bad debt and late payments from customers?

Would you like an effective and cost efficient solution to recovery your money whilst you focus on your business?

If your answer is ‘YES’ to both of these questions, then it’s time to speak to a professional and results-driven debt collection agency. They are able to represent your business with complete professionalism to recover your bad debt, leaving you to focus on running your business. Leading debt collection companies have many years’ of experience whilst also being able to leverage industry leading technology that you wouldn’t be expose to. It’s time to remove stereotypes and start to think about outsourcing to specialists.

About the author: Antony Firth