subject: The Best Accounting Software To Choose For Small And Mid-Range Business [print this page] The Best Accounting Software To Choose For Small And Mid-Range Business
Finding the best accounting software that meets your needs will depend on several things. The size of your business, the number of people who will be using the system at one time, the type of accounting your business will be doing, and the reports you need to produce. These are a few considerations and as each point is covered you will think through the requirements and have a good idea of what you need in a program to keep good records of your accounts.
The size of a business will determine the type of accounting package to handle operations. A sole owned business may only need a very small program that records cash in and cash out. As a business takes off the growth might demand some smarter processing and additional employees. A small business with about five employees accessing the record keeping software might be fine while there are only a few who need access.
Accounting programs for small businesses cost very little when one person is inputting data and printing monthly receipts and payments. As your business grows you might be able to set up your own Local Area Networking system (LAN) to give more employees and yourself free reign to collect data and do input. A LAN network might require some assistance from a computer company that consults on site. The equipment to set it up is usually available right at home or in the office. The beginning design requires some cable, phone and wires to link the computers together in one location.
As more growth occurs the record keeping must increase to meet the different needs of new departments in a business. A different system will be needed and the next step is usually a client server network or a SQL server to support the accounting software. At this time an information technician (IT) is likely to be employed in house all the time.
When a business starts in the garage and goes to an office perhaps there is a prediction of greater future success. The networking system must keep up with the company to support the software programs necessary for tracking inventory levels, building costs, purchase and sales orders. This is quite an expansion from the beginning with cash in and out. Now consider the basic accounts receivable, accounts payable, and general ledger modules where you started. Think about the software package and if it can expand with your business.
Some companies find a software product that can take them from a small size of 5 or less employees to a larger network system that will support the same programs originally used in accounts receivable, accounts payable, and general ledger. Some software companies produce the additional record keeping functions, like sales order and purchase order, as separate modules that can be installed and use can begin. All the functions integrate and send information to the general ledger.
A business must be able to produce reports every month that totals receipts and checks written for expenses and inventory purchases. Invoices for sales and statements to collect accounts receivables need to be printed. Aged accounts receivable reports help owners to see that credit accounts are getting paid down consistently. Each month general ledger helps to combine all the totals from receivables, payable and payroll to combine the data onto an Income Statement and Financial Reports.
In conclusion, the best accounting software product for your company is dependent on your needs and how well the software product delivers your solutions. Consider how user friendly the program is for new learners who do data input and those who produce reports in the office or on the floor using the accounting functions. Remember, cheaper is not always better. However, there are some very good, inexpensive and mid-range priced products with integrity in the accounting software market.
