Maintaining the financial records of your business is crucial to make sure you have a clear picture of the company’s financial state. With the help of virtual bookkeeping services, any business decision can be quickly taken depending on the latest data. Standard bookkeeping software not only simplifies these tasks for the bookkeeper but also gives you better control over the records and cash flow. However, with so many virtual bookkeeping software available, it is not easy to choose the right one.
This post is a detailed guide to choosing the best online bookkeeping services and software so that your business consistently thrives and earns profit.
Tips to Choosing the Right Bookkeeping Software:
There are certain criteria that you must keep in mind while choosing a bookkeeping software for your business:
- Consider your business requirements, and accounting skills
The business processes and how it operates, influence your choice of bookkeeping software. You must choose the software with features which complements the cash flow and business process of your company best. Your accounting skills is another factor that must be taken into consideration when you are choosing a software. Without the minimum layout of accounts, understanding the operation of the software and overseeing the reports can be difficult.
The following are certain factors associated with the business requirements that will influence your choice of software:
- The average yearly turnover of the business and its size- the bookkeeping for a seasoned business will be very much different from the online bookkeeping services for small businesses.
- The genre of your business or the industry it belongs to may call for specific requirements that can only be fulfilled by specialized software.
- Learn about the latest technologies in virtual bookkeeping, research the top bookkeeping software available. In short, polish your financial literacy so that you can understand the basics.
- Know about the types of products available
There are different types of software for bookkeeping business available for small and medium-scale businesses. While some are free, others are paid packages available for small business accounting and payroll management, full-service business management, and online web-hosted software.
The following are some of the types of products that you will come across while looking for the best option for your business:
- Web-hosted applications- These are online bookkeeping software that are designed to make the most of the cloud technology. With superior security features, the web is considered a safe business environment by many. QuickBooks Online and Peachtree are among the top software which can be counted under this category.
- Small business payroll and accounting- This software can meet most of the requirements that small businesses have for bookkeeping and accounting. QuickBooks series available in different tiered versions is among the best-selling choice under this category. Other simpler options include Simple Accounting by Sage. This paid software can be used by multiple users depending on the license you are purchasing.
- Free bookkeeping software- There are many free software available, though these can be a temporary solution and should not be relied on as the permanent and sole choice for handling all your business transaction records. You can get a free trial version of almost every online bookkeeping software and step up to the paid version in the future.
- Consider your budget
As a small business owner, this is a primary concern for many who are looking for virtual bookkeeping services that are cost-effective. The price varies depending on several factors:
- The number of people who will need access to the software and the license purchased accordingly.
- The version of the software and the features it has.
- The package that you are choosing.
Software with general applications serving a broader user base and available off-the-shelf are much more affordable than the ones focusing on industry-specific accounting and bookkeeping. The specialized software is also called vertical software and there is an annual maintenance fees that should be paid to receive the updates that are produced from time to time.
- Consult your bookkeepers and accountants
Since the bookkeepers and the accountants will be using the software, consulting them beforehand is necessary to ensure it is compatible with their requirements. They have the necessary education for understanding the intricacies of the software and hence can help you regarding choosing the packages, customization, and add-ons that cover the financial requirements related to your business.
If you are outsourcing your booking requirements to a virtual bookkeeping company, they can also recommend what is the trending accounting software preferred by your competitors in the industry. This will assist you while narrowing down your search for the perfect software. The best online bookkeeping services usually rely on the most standard software available in the industry.
We have discussed the features and advantages associated with some of the best options available in the bookkeeping industry in this blog to give our reader’s a complete insight on online bookkeeping software.
- Take note of the add-on features
To get extra functionality from the chosen accounting software, you can purchase compatible add-ons. However, there are limitations regarding the suitability of the add-ons and they may not be compatible with every software. Certain add-ons are specifically designed to be used with a particular software. Hence, while selecting the software, you must consider the add-ons you can use or are likely to use in the future and find out if it is compatible. This is another matter on which an expert bookkeeper can advise you best.
- Compare and finalize your choices
Now that you have all the information you need regarding the top accounting and bookkeeping software, compare the pros and cons of each to shortlist which are the most suitable option for your business. You can even opt for the trial versions of different software.
These days, as technology advances, bookkeeping software is the best way to maintain records accurately. Considering the criteria mentioned above will make it easier for you to find a suitable bookkeeping software. There are least chances of bugs when you have a reputed bookkeeper handling your financial records using the best software available for small and medium scale businesses.