Accounting Software

Keeping it simple while keeping the books

Unless you're an accountant, odds are you didn't start your business for the bookkeeping. Nevertheless, accurate accounting is an important part of keeping your business on track. The right accounting software package can help crunch the numbers faster and more accurately, saving you frustration and leaving you time to attend to those aspects of the business you really enjoy. And isn't that why you started your own business in the first place?

Accounting software is a type of financial software that deals specifically with business transactions. Usually, small business accounting software includes an electronic ledger for basic bookkeeping, accounts payable and receivable records for tracking cash flow, billing software for generating invoices, and purchase and sales order functionalities for controlling inventory. More advanced business accounting software may also include time sheet software, debt collection capabilities and/or payroll software.

One essential feature not usually included is business tax software, since these applications are updated every year. However, many of the same companies that make accounting software also make tax software for businesses.

Finding the correct accounting software package for your business will depend largely on the size and type of business you run. If you're a one-person business, a payroll function isn't likely to be necessary. Likewise, if your product is a service, you probably won't need an inventory control module. Generally, the variety of accounting software available should offer something to meet just about any business' needs. There are packages available specifically for home-based businesses (which often have particular financial concerns), and many companies offer several variations of their software tailored to different sizes and types of businesses.

Features and Benefits

Using accounting software rather than keeping manual accounts provides your business with:

• Accuracy. Letting the computer crunch the numbers helps ensure the math is done correctly. No more worrying about moving the decimal or carrying the one!
• Information. Handy reporting features let you know your situation virtually at a glance. Know your finances to the penny. Track your time or your employees' time to the minute (or even the second!). With just a few clicks of the mouse, you can see your business' whole financial picture.
• Increased Profits. Knowing where your money is going can help you plug any leaks in your budget, and knowing who owes you can help you collect sooner.
• Savings. Not only will using accounting software save you time (it doesn't matter how good at math you are – the computer is faster!), but it will also save you money. In general, businesses using accounting software over manual records find more tax deductions – which means a bigger refund and more money in your coffers.

Top Choices

Some of the most popular business accounting packages include:

• QuickBooks
• Simply Accounting
• Peachtree Complete Accounting
• MYOB Business Essentials Pro
• NetSuite Small Business Accounting

Major Considerations

Before you buy an accounting software package, ask yourself these questions:

• What functionalities do I need this software to have?
• How much can I afford to spend?
• Will I be using this software myself, or will I be training someone else to use it?
• Can I integrate this software with other software or hardware that is integral to my business?
• Is this software customizable to meet my specific needs and preferences?

Price Range

Accounting software covers quite a large price range, from free accounting software you can download to packages that will cost you well over a thousand dollars. In general, though, a complete package that meets most of a small business' needs can be had for between $200 and $300.

Summary

It might not be a business owner's favorite task, but keeping the books is essential to running a successful – and profitable – business. Business accounting software can help take the stress out of financial management and allow you more time to actually run or grow your business. Finding the right package is really just a matter of figuring out what features you need, then doing a little research as to which software offers those features in the most cost-effective package.