CHOOSING ACCOUNTING SOFTWARE FOR YOUR SMALL BUSINESS

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Small businesses are private firms, partnerships, or proprietorship. There are fewer employees and annual income is lesser than a regular size business. A business is classified as small to qualify for government support and utilize tax resources specifically designed for small business. Small businesses can range from shops like bakeries, grocery stores, salons, service companies, software houses, to lawyers, clinics, accountants, and home industry. 

Accounting is the application of knowledge related to business bookkeeping in a systematic and comprehensive manner. Accounting is the key-function in every business. In a small business, accounting can be managed by a single person, while in a large business, the accounting process needs more accountants. Accounting is a way to record bookkeeping, manage accounting statements, perform internal audits, advise on tax payments, etc. Interpreting accounting statements correctly by the entrepreneur ensures successful entrepreneurship. Accounting explicit profit, loss, liabilities, tax, and equity in a business is essential.

Accounting Software

Accounting Software are computer programs specially designed for performing daily accounting tasks and business bookkeeping functions.

The importance of using accounting software in the business:

  • Hours of time is saved by using accounting software for business operations and bookkeeping tasks.
  • Accounting software aids in monitoring the cash flow in a business. It can create invoices, track expenses, and create a variety of accounting reports. Such software also aid in managing inventory.
  • Accounting software can be relied on to analyze business operations.
  • There is a vast range of accounting software in the market. These accounting software are designed to specifically meet the needs of small to large size businesses.
  • There are software for accounting which are so simple in use that a small business owner who has no background in accounting can use them easily.

Accounting Software for Small Business

An important and challenging step in business is to choose the right software per your business needs. Consider its cost, usability, and extra features for choosing a suitable software for your small business.

  1. Features of an Accounting Software

The following accounting tasks are important for a small business:

  • Inventory management
  • Sales trackin,
  • Contact management and contact history tracking
  • Account to accept credit card payments
  • Generating Invoices
  • Financial statements, cash flow statements and balance sheet
  • Budget planning
  • Payrolls
  • Taxation matters

When choosing an accounting software for small business, always search for the above features in the software.

  1. Business Specific Accounting Software

There are software which are designed specifically for a specific type of business. A software for manufacturing business will require certain features specially designed for manufacturing units. A construction business requires a few features solely helpful in a construction business.

  1. A Cloud-based Accounting Software or an Accounting Software for use on Desktop

Always discuss your requirements and expectations from an accounting software with the software programming company. Discuss with other experienced entrepreneurs and get to know their choices before getting a software for you. Many software companies provide a specifically designed software that will meet your demands.

  1. Cost

Accounting software cost is an important issue to consider. First, plan out your business needs and finances. Purchasing a costly software with highly-advanced features will not help your small business. A small business owner can plan to purchase accounting software by giving a full payment at once or he can give payments in installments or as monthly payments. Plan out which suits your business finances the best.

  1. Modules to be added on later

Accounting software often have modules to include features as your business grows. Many software can be upgraded as the requirements for accounting processes increase. For example, a Payroll Module is often added later in many small business accounting software.

  1. Free trial

Go for a software where you are given an option of a free trial.

Some Accounting Software for Small Business are QuickBooks, SaaS, Freshbooks, Xero, Zoho Books, Wave.

CONCLUSION

An accounting software makes accounting work easier and helps on-time completion of accounting processes. Small businesses also need accounting software just as large businesses do. The accounting software for small businesses are specifically designed with small business features. But, good accounting software for small business gives an option of upgrading the software or adding modules in that software. Clarify your needs and expectations first, then go for purchasing an accounting software.

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