Importance of Choosing the Right Accounting Software
Accounting Software – Importance of Choosing The Right One.
Accounting software-Whatever the size and nature of your structure, accounting management software are one of the essential pieces of equipment. So how do you choose accounting software from the existing offer on the market?
What is accounting software?
Accounting management software is a computer program that tracks the financial state of a business. Indispensable to the accountant (or, more generally, to the person in charge of accounting), it is used to record and process all the economic transactions carried out between the structure and its partners (customers, suppliers, employees, banks, etc.).
Like most software, there are two types of accounting software:
- The system was developed in-house and installed on the company’s computers (license),
- Or QNE software, which works by subscription and which is only accessible through a platform on the Internet.
The use of accounting software saves considerable time. At the same time, errors in the processing of financial data are greatly reduced.
5 criteria for choosing the right accounting software
The nature of the structure
There are hundreds of accounting management solutions out there, but not all of them are right for you. Most editors have specialized in one type of structure and have developed very specific functionalities. It is important to take this criterion into account so as not to waste time. When researching your accounting software, focus on a solution that is right for your size. Clearly, if you are a VSE / SME, select accounting software for VSE / SME . Note that there are also accounting management software for associations and accounting software for auto-entrepreneurs. While some of them are free, they have the main advantage of being very intuitive.
Is this the first time you have purchased this type of software? A word of advice, avoid the classic mistake of choosing ultra-complete accounting software, with all the possible features. It would be wiser to start by taking stock of your needs:
- Who will take care of the accounting? What is his level, his accounting knowledge?
- How many users will have access? Do they have the same rights?
- Are you looking for a “2-in-1” software (business management and accounting)?
- Do you have a chartered accountant? Does it already “impose” specific software on you?
- What is your operating system (Windows, Mac)?
- What is your budget?
- Do you need training? From a personal advisor?
If you delegate most of the tasks to your accountant, we advise you to choose a basic solution, which you can upgrade if necessary.
The functionalities of the accounting software
Once you have taken stock of your needs, a first natural sorting will take place in your list. It will therefore be time to look at the different functionalities offered by the accounting software that you have chosen. Ideally, they should allow:
- The keeping of general accounts (choice and configuration of the chart of accounts)
- Management of transactions with third parties (knowledge of the various balances, automatic edition of reminder letters)
- Editing of financial documents (balance sheet, file of accounting entries, income statement)
- Asset management
- Data export
Please note, most accounting software works in modules and comes in several formulas. Before buying accounting software, make sure that the chosen formula allows you to have access to the desired functionalities.
The level of compatibility
To make the transfer of your data as smooth as possible, choose flexible and “open” accounting management software. It must be able to integrate easily and quickly with the internal tools already in place in your company, such as your invoicing software for example. If you only partially manage the accounting, check that it has a “data export” module. This will facilitate discussions with your accountant.
Compliance with current legislation
Accounting is a complex and constantly evolving sector and companies can be subject to the controls of social and tax administrations. It is therefore essential that your accounting software takes into account the new regulations. The good news, most of them offer automatic updates when new laws are passed. What to have peace of mind!
Have you found the accounting software you need? Keep in mind that most of them offer a free subscription period which is great for trying out all the features. It is also a significant additional asset if you are not sure of your choice.