Many businesses who use accounting software believe they are reaping benefits, but what they don’t see is the abundance of issues that are growing larger every day. Generally, it is outdated software programs that cause such issues, meaning an update to a software program needs to take place on a regular basis.
Four of the more common problems endured by businesses using accounting software include:
- Weak reporting service: As odd as it may seem, some accounting software programs make it nearly impossible to retrieve data that has been previously inputted. Because of this, come tax time it takes forever to gather all of the necessary financial records.
- Not user-friendly: Many businesses have noticed their accounting software programs are simply not user-friendly. The programs leave no room for customization, making inputted data extremely cluttered.
- Software incompatibility: When an accounting software program isn’t compatible with the other programs being used by a business, this makes it very difficult to align data along with other pieces of important business information.
- No technical support: For accounting software programs that do come with support, generally it is not offered 24/7. If an issue arises on the weekend or during a holiday, it tends to be extremely difficult to get the help that is needed.
Overcoming Accounting Software Issues
Fortunately, there are ways to ensure the above mentioned accounting software issues are overcome. In fact, the five best ways include:
1) Document the shortcomings of your current system:
No accounting program is going to be perfect. Because of this, it is important to identify the shortcomings of your current system. Then choose an updated program that overcomes these shortcomings. It is also important to identify what the new system is lacking because this allows for solutions to be determined during the early stages of utilizing the program.
2) Don’t be fooled by all the features:
Even if an accounting software program comes with more than 100 features, if the features don’t apply to what a business needs, they will be of absolutely no use. Because of this, businesses will do well to first identify the bells and whistles of an accounting program, followed then by determining whether or not they will be beneficial. If they won’t, it’s best to move onto a different software program. There are certain features that will be needed by almost any business, including those that help carry out:
- Bank account balancing
- Invoicing
- Payroll
- Online payments
- Auto payments
3) Stay on budget:
One of the more influential factors that will affect a business’s choice of accounting software will be the associated price tag. The more expensive the program, the more apt it will be to perform extensive and complex tasks; however, expensiveness doesn’t always translate into accuracy. There are plenty of software programs out there that are very affordable. In fact, one of the most commonly used programs starts at around $250. Cloud-based options can be accessed for less than $15 a month.
4) Room for growth:
As businesses grow, they constantly change. Because of this, a business needs to make sure that its accounting software program will be able to grow as well. For example, if a business expects to have more than one accountant handle its taxes, it needs to make sure the accounting software program will allow for more than one user.
5) Research the software program:
Research is key in making sure an accounting software program will be of use. By taking a bit of time and carrying out online research, a business will be well on its way to finding the pros and cons of a particular program. When doing this research, it is important to keep in mind that all programs will have a few cons; however, if the cons are very large in number, it’s usually best to move on to a different program. In addition to doing online research, a business needs to speak with other businesses who use the same accounting software. If the other businesses are pleased, this is a good sign that the program is worth purchasing.
By utilizing an accounting software program, a business will be able to stay on top of its cash flow, which in turn will help it to more effectively manage its funds. The software program also enables a business to neatly organize all of its financial data, making it tax time less of a headache. Most importantly, an accounting software program allows a business to make better up-to-date financial choices. Because of all of this, all businesses need to take the time to update their accounting system on a regular basis.
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- Upgrading Your Accounting System? 5 Things You Need to Do First - December 12, 2013
Well, I don’t think so that we need to update our accounting system to a new one. All the accounting systems are nearly same and we should make sure to save our records before updating it.
Thanks
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I donot think accounting is a very hard job in these days. There are plenty of effective software in the market which makes this job very very easy. Now a day you do not even need to hire a CA at the time of tax filing.
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Hello Sadek,
Setting up accounting programs used to be daunting. Even if they have resolved that challenge with software that comes already set up, what you pay accountants for is wisdom and advice on structuring business cashflow and taxes. Programs are fine if you aren’t running a business – but if you are – not having expert advice may prove costly in the long run.
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Thanks for the great information. I’d have to say that for our company the most important thing is that our system can grow as we do. We’re gaining new employees every month so it’s important that our accounting software can keep up.
In a very beautiful and amazing way you have described the updating of Accounting System. This is a step by step guide, which must be followed by every financial institute, firm or company.
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Hey thanks for sharing a great video in this video many benefits are there thanks for sharing.
Yes, your points are correct and I think there are many reasons service organizations initiate a process to review, purchase and implement new field service management software. Regardless of the reasons that bring your service organization to that tipping point, there are several critically important ways to organize your buying process that can eliminate the unexpected and significantly increase your chances of success with your new system.
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Informative post! The above mentioned tips are really informative and helpful for choosing accounting systems and I’m sure it’s very important to follow all these tips for accounting systems.Thanks for sharing!
The video was very informative. These things are highly beneficial for our company too.
thank you for sharing this information.. and thank you too for sharing the video..