Last updated by TechPrate on September 5th, 2021 at 11:03 pm
Choosing the best accounting software is a financial investment and takes time. It also has an impact on the work habits of your employees. To make the transition in the best possible way, you can prepare for this change!
To do this, you must take stock of your needs by asking yourself the right questions. It is also necessary to be vigilant to specific issues: when is the best time to need accounting software? What are the steps to follow? What investment to devote to it?
We are here with you and answer all of your questions.
The Different Types of Accounting Software
There is a wide variety of software. First of all, some are made for small businesses. In general, they allow their users to create their quotes and invoices, follow their outstanding amounts, and efficiently manage their VAT declarations. Very easy to learn; they are beneficial and sufficient for companies with an accountant.
For example, QuickBooks is one of the TPE (Transaction Processing Environment) oriented software, it has the advantage of being secure and ergonomic.
More advanced software allows the businesses and companies of all the accounting internally, but you have to choose them wisely. They allow their users to manage their fixed assets, send their tax packages, connect to their bank accounts, create their balance sheets and income statements. This kind of software is often less easy to learn because of the large number of features they have.
For example, eBetterBooks online accounting belongs to this family, it includes all sections of accounting such as bookkeeping, taxation, reporting, payroll, inventory management, or even financial strategy.
That’s not all. There is accounting software that allows users to manage their accounting at the same time. They are nowadays the most common and the most used. As an example, the EBP software takes care of both accounting, commercial management, and payroll management.
This type of software is perfect for small-medium businesses. It can be beneficial because they are sometimes equipped with specific functions such as monitoring the progress of a building site or controlling the costs specific to a precise trade.
How Do You Start Your Search for the Perfect Software?
That’s it, your Excel file is becoming unsuitable, you are overwhelmed and have grasped the importance (even the urgency!) of having good accounting software. But where to start? Already, collect opinions!
- Your accountant will be of excellent advice, knowing the offer of software available, as well as your needs. Be careful not to trust anyone’s opinion alone, since it is also in his interest to advise you on the most accommodating software about its operation.
- Do not hesitate to question your professional network, partners, etc. On their accounting and management experiences & choices.
Define Your Needs before Choosing Your Accounting Software
The first step is to determine where, when and how you want to use your software.
- Do you only need to access your software from your desktop?
- Do you need to access your software from your home while traveling?
- Do you have to access your software during the weekend?
- Do you want to perform your backups and updates manually? Will your company ensure the security of your IT system internally?
Internal Organization and Accounting
The internal organization of your company will influence the choice of your
accounting software. So, to make the best choice, ask yourself the following questions before choosing the accounting software:
- How will many daily users need to access the software?
- If there are several of you, will you need the same features?
- Do you want to maintain your accounting autonomously from end to end?
- Should you exchange information with your Chartered Accountant? How often?
- Would you like to benefit from a collaborative workspace with your accounting firm to discuss in real-time?
- Do you have specialized software that needs to communicate with your accounting software?
Which Software for Which Type of Business?
Several types of software exist according to your profile:
- TPE with chartered accountant: simple software with basic functionalities for keeping the accounts, even invoicing and quotes.
- Companies managing their accounts internally: complete software integrating the entire accounting process ( VAT declaration, tax return, expense reports, etc.)
- SMEs / large companies prefer to use an ERP: software that will centralize all the data to go further than just accounting management. They are often tailor-made, covering specific needs. Find here how to choose and implement an ERP.
- Companies in specific sectors: some software is particularly suited to trades (building, catering, for example)
- To help you see more clearly, here is a Top 7 software that will make you … love accounting (yes it is possible!).
This step consists of contacting the main publishers of accounting solutions (Ciel, Sage, EBP, Cegid). Many of these softwares offer standardized products to the general public that can be accessed directly from the Internet, without quotes.
The ideal would, of course, be to test them before renting or buying them. Almost all software has free trial versions. You can opt for this option, test them out and get an idea about the different software tested.
It will be useful to go back to the previous list relating to the questions you should ask yourself in order to identify the software that will best meet your requirements.
Your accountant, being a specialist in the field, can also give you his opinion and will be able to advise you on the choice to be made, thus taking into account the needs of your structure and its own equipment. A good accountant can advise you on how to choose the best compatible accounting software.
If a chartered accountant follows you, we recommend that you seek their advice on your accounting software choice. Sometimes your accountant works with an editor or has an app in-house that you can access.
It is essential to test the software before committing. Some are more functional and easier to use than others.
Then, it would be best if you preferably opted for a solution offered by a recognized publisher, this normally provides you certain guarantees in terms of updating, compliance with regulations, and assistance in the event of a problem.
Make sure that the software chosen allows you to edit the mandatory accounting books and generate the computer file of financial entries, which can be requested by the tax administration.