How do I choose a suitable accounting software for my business?
Thanks to the current outstanding technological development, most businesses tend to choose a suitable accounting program to manage their daily transactions and produce reports periodically to help decision makers take the right decision to achieve the greatest return with the least effort.
Here are 10 criteria for choosing the best accounting software for your business:
1- Accuracy.
In the past, it was difficult to maintain accuracy due to manual paper work and Excel. The possibility of human error and lack of mechanisms to prevent errors in these tools, or even the possibility of losing some of the data, was a major disadvantage. Now, accounting systems provide accuracy in data and output, because software systems rely on equations and algorithms in processing data and ensuring its integrity and accuracy. Accounting systems differ in their accuracy and how they alert the user when an error occurs, so it is highly recommended to consult previous users of the system or take a look at their published reviews, if any, before acquiring an Accounting System.
2- Users Permissions Management System.
If the activity of your business is large and depends on the distribution of roles among more than one person, you need an accounting system that supports user permissions. This feature allows the business owner, for example, to restrict the permission to delete and add to one user and prevent another from viewing or accessing some reports, thus being able to protect the privacy of the business's accounts. The more permissions that can be set in the system, the better it is.
3- Speed and Time Saving.
Accounting programs eliminate the need to enter duplicate data, allowing you to periodically export reports and financial statements in moments, regardless of their size and complexity. It also enables you to make a complete accounting cycle in seconds, starting from entering transactions and ending with financial statements and budgets. All you have to do is enter the raw data correctly and the program will process and display it in the correct report. Through this, you can create detailed, aggregated and comprehensive reports in moments and for any period of time. Therefore, always consider how flexible the data entry is before purchasing an accounting software.
4- Online and Desktop Software.
Accounting systems are divided into two major categories:
A) Online Software: Online systems that are easy to access from anywhere in the world with an Internet connection. You can monitor your work and export and print necessary reports at any time and from anywhere, and it doesn’t require dedicated servers for your business because the software company saves your data on its own servers and is responsible for protecting it from viruses and security breaches.
B) Desktop Software: Desktop systems offer their own advantages. They save data on your dedicated server. They are usually easier to use and don't require Internet connection. This type of software is usually fast and easy-to-use, but they require dedicated devices, and the responsibility of these devices is yours. You are also responsible for saving the data and protecting it from viruses and security breaches. This usually means that you have to hire one or more employees to do this job.
Each type has its advantages and disadvantages. Choosing the most suitable program depends on the nature of each business and its capabilities.
5- Backup.
Most cloud accounting systems provide regular data backups to restore them when needed. For desktop or offline programs, this is often the responsibility of the user because the server and its databases are under his responsibility. Some systems also provide the option to archive the invoices and paper documents, which works as a backup for the printed documents.
6- Designing invoices and reports.
Some systems provide a built-in report designer to design invoices and reports and add the business's logo to export professional documents. Make sure this feature is available when you choose the accounting software for your business.
7- Customers, Vendors and Sales.
Most business activities include purchasing and selling something. So we must take into consideration when choosing the suitable system, the ease of dealing with the accounts of customers and vendors, and the flexibility of the sales system. Therefore, when you choose your accounting system, make sure that it offers all the requirements you need for the sales invoices and the customer and vendor reports.
8- Technical Support and After-Sales Service.
This criterion is considered one of the most important because no matter how advanced the system is, it always needs technical support to follow up on updates and solve any issue. The support service varies from training, programming, design and accounting, so you must make sure that you have an easy access to all the support you may require. It is recommended you take a look at the reviews of the current customers on the efficiency and speed of response of the technical support of your chosen software.
9- Support for Your Country's tax System.
Taxes and their regulations vary from country to another. One of the most common types of taxes is value-added tax, or VAT. You must make sure that the program supports the tax system in your country, and that it calculates the tax correctly, and provides detailed and comprehensive reports to be submitted to the relevant authorities and avoid fines. You must also make sure that the system supports any other requirements such as electronic invoices and its various stages that are applied in some countries.
10- System Integration and Coverage of the Required Functions.
You must bear in mind that ERP systems are known for their integration and ease of adaptation to work in different fields. They are also integrated in a way that facilitates the exchange of data between its various modules, such as accounting, warehouses, purchases, sales, human resources, fixed assets, and production. This feature helps you follow up and monitor the activity of your business without incurring extra costs in purchasing multiple systems and saves a lot of effort and time required to enter the data into each program independently.
We hope that this article will help you choose the suitable accounting system for your business. You can take a look at Medad system and its features and request a demo by reaching out to us via our contact details provided on our website.