Upgrading Your Accounting System? 5 Things You Need to Do First

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 Generally, it is outdated software programs that cause such issues, meaning an update to a software program needs to take place on a regular basis.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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Michael Pendred

Michael Pendred is Managing Director of Horizon Business Systems, a leading provider of Accounting Software Solutions in Perth, WA. Find Michael on Google+.

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• Upgrading Your Accounting System? 5 Things You Need to Do First - December 12, 2013