For many years it has seemed that the small business community was not provided with quality accounting software that provided a solution to the needs of small business operators. Due to complexity of accounting software and the problems associated with data input and reporting, many operators (up to 50% of small businesses) don’t use any accounting software at all!

The first step when choosing accounting software is to determine what Your needs are and which accounting software package best meets those needs. When determining your needs, consider the following:

Data Input – Is the user interface user friendly? Will you or your staff be able to efficiently and effectively input the data? Are there controls over the input such as passwords, and error flagging if an incorrect code is input.

Data Output / Reporting – does the software produce the type of reports you require? If you require specialized reporting because of the type of industry you are in, will the software allow you to easily design a customized report? Depending on the country you are in, will the accounting software provide GST/VAT reports so you can account for the Government imposed tax correctly? Are the standard reports that are provided, in a format that you want, or can they be modified for your specific needs?

The range of Modules – Does the package include all the required modules such as payroll and a fixed asset register – are the modules integrated? Integration means that data is transferred by the software, from one module to another, without you having to manually re-input the data. This saves time and significantly cuts back on errors within your data.
What sort of modules do you want – Accounts receivable or debtors module (people you sell to), Accounts Payable or creditors module (people you buy from), Payroll (employees), Fixed assets (capital equipment register), and Job Costing (allows you to keep track of costs for specific jobs). Within each module, what sub-modules do you want – purchase orders generated by the system, checks printed, and customer invoices generated.

Back Up of data – Is it easy to back up your data to an external drive such as a CD rom or a usb storage device? – is it easy to restore data if required?

Support – This is a critical question – is the accounting package supported by the supplier if you have any problems? How much does support cost? Some suppliers charge a fee for each call you make, while some have an annual charge to cover all backup support. What is the instruction manual like? Is there a good help function within the software?

Business Growth – Is the accounting software able to be used by more than a single user? How is the business charged by the supplier for growth? Some packages just require the purchase of more licenses, while others require the purchase of another copy of the accounting software.

Installation - Is the software easy to install, and is there support if you need it to help with any questions you have?

These are some of the questions that need to be considered when purchasing an accounting software package for your business.

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