Need to Know: Accounting Software
Every business owner will deal with basic accounting and accounting software at some point. Whether you are the type to do it all yourself or one who does the basics and hands it off to your accountant, accounting is essential to any business. Business accounting software keeps track of your financial transactions within your business. Some financial industries and non-profits have highly specialized functions within their accounting software. Below we will describe the basic functions you should look for in your small business accounting software.
The benefits of understanding and using an accounting software are that it helps create better visibility of costs and expenditures allowing for more financially responsible decision making. Many software programs can generate detailed reports to help you analyze and implement the data collected. While there is nothing wrong with going old school with a paper ledger and pencil, most small businesses cannot afford to sacrifice efficiency and productivity.
The core functions of any business accounting software should include the ability to balance your business’s books including the general ledger and customizable chart of accounts. Bank reconciliation, and tracking for accounts payable and receivable are essential for any software. Often small business accounting software will include basic billing and invoicing modules as well. Automation can make save your business much time by eliminating the manual input of transactions and transfers, this can be an important feature if you are too busy or abhor doing your accounting manually. Third party integration with other business apps you already use extensively is something to consider in your software search as well.
Accounting software products can vary widely in cost, largely dependent on the features you choose. Most of the options for small businesses today are cloud based and on a subscription pay basis. Generally a package can range from $20 to $80 per month for the basics. Choosing the right software is key to your success in using it. Here are some questions to ask your potential accounting software:
- Is the software built for small business?
- Is the software a good fit for my industry?
- Does the software allow for customization?
- Is the data backed up?
- Is the software cloud based?
Click Here for in depth reviews of the many available business accounting software packages.
Accounting is an important component of any successful business. Reidel Law Firm is designed to serve Texas small businesses from the ground up. We offer flat rate services to help Texas small businesses survive and thrive in today’s challenging market. Leave the legal work to Reidel Law Firm so you can focus on growing your business, call today at (832) 510-3292 or use the form below to schedule your free consultation.