4 Things You Should be Looking for When Picking Accounting Software for Your Small Business

Staying on top of your books is essential if you’re running a small business. While you can always work with an accountant, this is something that you can do on your own if you have the proper accounting software.

A good piece of software will allow you to do everything your regular accountant can, while making it as easy as possible to you as a layman. But with so many different tools on the market today, it can be challenging to know which one would fit your operation the best. Let’s take a look at some of the things you should be looking for in an accounting software platform.

Your Business Model

Are you a small to medium business with eyes on expansion, or a small one-person operation? This is something that you’ll have to consider when picking a tool.

You’ll often hear about tools like Wave and QuickBooks for instance, and while both are great, one could be much better for a small operation than the other. PieSync recently released an article where they explain the main differences between the two tools. One of the things they mentioned is that Wave is more targeted to freelancers and small businesses with less than nine employees. QuickBooks, on the other hand, is much more scalable and has more options. It’s also a better option if you’re in a sector like retail. If you want to learn more about both tools and see which one would be a better fit, follow this link.

Pricing

The second thing you should look for is pricing. In the case of Wave, the service doesn’t have a monthly fee. However, you will have to pay for each transaction, and these can be more costly than with a paid tool. So, you have to look at the price structure in detail, and the features.

User Friendliness

Another thing that you should consider when picking an accounting software tool is your skill level and how easy the tool is to use. Some will have a big educational component and could help you understand things like deductions for example. If your skillset is limited, a simple tool might be a better option. But know that these will usually not be as extensive as other options.

Cloud or Local

You also have to consider whether you’re going to go with a cloud-based tool. Cloud accounting software has tons of advantages. For one, it can be accessed from anywhere, as long as you have a solid internet connection. No need to purchase a license either. Not only that, but the software provider will be the one responsible for patches and updates, and there are little chances that your data will be lost after some disaster.

Choosing the right piece of software for accounting is essential if you want to be able to remain compliant and keep an eye on your finances. Follow these few tips, and don’t be afraid to ask others in your line of business for recommendations.