What You Should Look for in an Accounting Software

choosing accounting software

With the introduction of the government’s making tax digital initiative, now is a more appropriate time than ever to start looking for accounting software.

To prepare for the change, it’s essential to start looking for decent accounting and tax software early on. This ensures that the move to digital tax is as smooth and painless as possible.

These days, there is a multitude of different types of software with different tools; all designed to help store and secure accounting and tax details for organisations. In order to help you decipher which piece of software is right for you, we’ve put together this article on what to look for when choosing accounting software.

 

Tools and Features

If you’ll be using the software for basic accounting purposes, the chances are you won’t need a state-of-the-art piece of software with all the mod cons.

Think about what you’ll actually be using the software for. If you’re a smaller organisation looking for accounting software to track cash flow, you may benefit from a simple software such as QuickBooks. Whereas large organisations may benefit from tools such as live business updates and therefore may opt for more detailed software such as that from Sage.

It’s also an essential to coerce with your accountant or staff and see if the software you’re thinking of using fits in with their tools. They may even be able to suggest a suitable software themselves.

 

Accounting Software Cost

Whether you’re a part of a small or large firm, the cost is an important factor when looking for the right software. Some accounting software is industry-specific and can increase in price with added features such as cloud accounting.

With software, a higher price is not necessarily a direct predictor of quality; and you may end up paying over the odds for overly complex systems if not careful.

To avoid this, compare specifications of software side-by-side to see if you can get the same features for a cheaper price from a different provider.

 

Free Trials

Demonstrations or free trials are crucial in determining which software is right for you. This allows you to try before you buy and identify any potential areas of weakness before committing to a purchase.

Take advantage of video demonstrations, one-on-one classes and interactive walkthroughs of the software you’re considering to get an idea of whether they’ll be a good fit for your organisation.

 

Reputation

If you’ve stumbled across a piece of accounting software that no-one uses, there’s probably a good reason why. That’s why it’s a good idea to speak to people in a similar situation to you and see what works for them.

More often than not, you’ll find that the software with the best reputation, is usually of a high standard and quality.

Alternatively, speak to the experts. Here at Alexander, not only do we provide the best accounting services and tax advice; our accountants can give you comprehensive accounting advice for your organisation.

Visit our contact us page to get in touch.