Do You Need Accounting Software For Your Small Business?

Do You Need Accounting Software For Your Small
Business?

by: E.SAUNDERS

If you’re anything like me then you dislike with a vengeance doing your accounts
and taxes.

So how can you make this process easier, less painful and cut your accountancy
fees?

Well buying an accounting software package is one way.

First of all you need to decide whether you are going to keep your accounting
records manually, that is using pen and paper, or whether you are going to
computerize the process.

If you decide that computerizing the process is the way to go then you need to
decide whether to buy an accounting software package, for example Sage or
Quicken, or whether a spreadsheet, such as Microsoft Excel will suit your needs
better.

As a general rule if you are a cash business that just
needs to record income and expenditure then you are better off using a
spreadsheet.

So, should you choose an accounting software package? Yes if:

· You have customers to whom you extend credit and you buy goods in the same way


· You process in excess of 50 transactions per month

· Your business is an Incorporated Company (Limited Company in the UK)

and

· You are computer literate or are willing to learn!

Before choosing the accounting software, speak to your accountants – they will
be familiar with the various accounting software packages on the market and will
be able to advise you. Most accountants use software in their office to process
the bookkeeping for their clients and will have a working knowledge of the
accounting software package they use. It may be cheaper for you to use the same
one they do, because they can advise you how to get it up and running and will
be on hand to answer questions, plus at your financial year end when your
accounts need preparing it will be less expensive, believe me to have a
compatible program.

I also recommend doing some research yourself, you may be
able to obtain a demonstration disk or download of the most popular accounting
software packages and this will give you an idea of how they work and if they
are user-friendly.

The cost may also be an issue, so you need to decide on your budget. But
consider how your business is likely to expand - you may outgrow that budget
accounting software quickly and end up buying the more expensive one anyway.

Accounting software providers may also try and up-sell you a maintenance
contract. Save your money! In my experience the established software providers
will not have bugs in their systems. They will also try and upgrade you to the
next version on a regular basis, but if the software is doing everything you
need then there is no need to upgrade.

Of course, you could also pay someone to do your accounts for you, either your
accountant or a bookkeeper – the payoff being you don’t have to do it yourself
and it frees you up to actually run your business!