Accounting now has a completely different meaning than it had 10 years ago. It is not just ledger entries or Fat Journals, It now has a more advanced touch to itself. Many people mistake accounting for just journal entries and keeping track of transactions. This is definitely not the case. Any person, who archives the transactions of his or her own business, would understand the severe need of a full-fledged accounting service at their disposal.
If a firm does not engage with using the accounting software nowadays, they may find themselves in the same boat as those confused accountants in 1984, who felt that they did not need computers at all.
Accounting software is an integrated program that deals with all nook and corners of the accounting process and its transactions. There are some points to be kept in mind while determining the capability of the accounting software for small business in India.
Determinants of good accounting software:
Specify your Accounting needs.
How would accounting software be useful to you? When and in which arena would accounting software help you? These are some of the questions you should ask yourself while selecting software. You should first understand how your business operates on a regular basis. It is a tough competition out there and thus, you should conduct research on what amenities every software provides. This would assist you in deciding the exact kind of software that your business needs.
If your business earns more than 100 Crores a year, then it will have different accounting needs than a business that earns 10 Lakhs per year. There is n number of accounting software that are different as per business. So, it is necessary to understand the types of accounting software like the one you will choose will make a direct impact on how your revenue is managed. Your accounting needs should directly co-exist with your accounting software.
Cost is an important opinion.
Choosing eligible accounting software is a sign of accurate financial literacy. You should know about several accounting software costs and their facilities. A business that does not run on a large scale can even download free software or buy software that is very low in price. General applications are also available.
But, if a person needs the accounting software at a large level, it can so happen that he would have to determine all the requirements and have specialized software made. Generally, the need for specialized software is less. The more the customizations exist, the more the price of the software increases. So, it is required to notice and analyze the features of every different system.
“You should also tell here like you should buy such software that gives you as per cost.”
What are the enhanced Features?
The choice of appropriate accounting software is a matter of deep research and importance. Every system would be providing some of the basic features as they are the core reasons any entrepreneur would turn to account software. But, it is also a good question that what are the additional features the software provides? Some software would allow you to access the functions remotely or accept payments online. There could also be a facility that you could integrate the software with your E-commerce software. You could also merge your taxes with this software which could simplify things in a great way.
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Improved Experience with Cloud Applications.
Cloud-based systems are systems that services made available via the internet from a cloud computing Provider’s servers. Cloud applications are in many ways better than a normal accounting software we do not have to commit to potentially expensive infrastructure costs or waste time in training the in-house staff. Cloud applications have the following benefits :
- Accounts can be accessed from any place with a strong Internet connection and no licenses have to be purchased.
- The staff does not have to worry about upgrades or installations as all of those processes are taken care of by the server end.
- The records of the data are stored at a place other than your business, which makes it all the more secure and impossible of being infiltrated.
This saves you the efforts of always looking over your shoulder and also, makes it increasingly easy or the staff as they can access this from anywhere and at any time, simply by signing in into it.
Ask your Accountant.
Could you make a meal more delicious than that of a Michelin-star chef? No, and thus it is important to accept the fact that your accountant would know more about its processes than you, as she would be the one regularly operating on the same. The Accountant accurately knows how and where are the strengths and weaknesses of your business, and he/she would know exactly what kind of system would you require for your business. Also, if you choose software completely incompatibly, it would also affect the skills of your accountant, which could land you substantial problems.
Accounting software is ultimately a machinery practice. If there are any changes that you have a problem with the system, the system should be flexible enough to get you a chance on how to retract all of your information and give way to using another system. Many times, it so happens that all of the important data stored inside would vanish when you stop using the software, and only an accountant knows the headache of going through every single transaction to set up the records again. Thus, your accounting software should be reliable enough to hand over the reins to you whenever and wherever you need.
In a Nutshell,
Thus, these were the main important characteristics that should be taken into consideration. It is inevitable to understand the features of accounting software to decide which system would be most implementable to your business. Accounting software is a boon for those who know how to make the proper use of it and a bane for those who do not understand the methods of their respective accounting software.