How To Choose The Right Bookkeeping Software For Your Small Business

Monday, 16 Oct 2023

Bookkeeping software has replaced manual data entry with accurate and automated recordkeeping. The digital tool has become a necessity for businesses because it saves the time and effort of bookkeepers in Melbourne.

It has helped professionals to utilise their freed-up time to work on financial analysis, management and advising. Many small business owners use these tools to streamline their bookkeeping efforts and enhance efficiency.

However, myriad options in the marketplace have made it challenging to find the right software. Also, those planning to use it for the first time need assistance with an appropriate selection that matches their business type and size.

So, here is how to choose the right bookkeeping software for your small business among all the available options. Your focus should be on finding the perfect fit for your needs. 

How to Choose Small Business Accounting Software?

Like any business equipment, entrepreneurs need to assess the best booking software before paying for the tool. Here are the things they must consider:

1. Find the Software That Fits Your Budget

Small businesses have limited capital for investment because of the high operational costs. Thus, they can opt for free software if they do not have the budget to buy paid software. These include Zoho, QuickBooks, MYOB, Xero, Sage, Wave, Reckon, etc. 

Most of them have their paid versions as well. Usually, the cost per month ranges from $17 to $80. However, you must check the inclusions and exclusions to know what you are getting.

Xero and QuickBooks enjoy the highest ratings among expert bookkeepers Melbourne because of their extensive features. However, every business has unique needs and must look at other features besides the costs. 

2. Check If You Need A Cloud-Based Software

Entrepreneurs must consult their bookkeeping companies to understand if their business requires cloud-based bookkeeping software or one that can be used only on the desktop. The former allows authorised users to access financial data in real time across devices from anywhere. It benefits business owners who keep travelling or have a remote team in different parts of the world.

The cloud-based accounting software comes with mobile phone versions that help the management accomplish accounting tasks on the go. If consistent internet connectivity is a problem for the business, it can use the desktop-based software that works offline. Most bookkeeping software offer both cash and accrual accounting systems. However, you must check the method of accounting before purchasing. 

3. Determine the Software’s Data Security Level

Data security is of utmost importance because of rising cybercrime. With confidential financial information getting shared and stored online, it is vital to pay attention to the security aspect of the software. Reputed bookkeepers in Melbourne suggest checking the access control methods used by the tool and how it restricts unauthorised access.

It must encrypt financial data so that individuals with decryption keys can decipher the information. Recently, one of the reputed businesses offering professional end of lease cleaning in Melbourne were able to secure their customer data with the use of the right software that helped to avert a costly breach.

The best bookkeeping software use firewalls to ensure authorised network traffic and block malware and cyber-attacks. They have an in-built anti-virus to protect the data from violations and offer data backup to recover valuable information in case of loss or theft.

4. Analyse the Features of the Bookkeeping Software

Entrepreneurs must check with their bookkeepers about the features needed to manage their finances effectively. The software must have functionalities like basic recordkeeping, inventory management, payroll management, invoicing, payment processing, bank reconciliation, financial reporting, tax planning, etc.

Besides these essential attributes, it should be easy to install and integrate with other applications seamlessly to organise data. It must be customisable to tailor the software according to the needs of the business and must be scalable to handle large volumes of data if the business expands quickly. Lastly, it should be user-friendly to be easily used by authorised employees. It would require assessing the skill set of the users before buying the bookkeeping software.  

5. Check Customer Service Provided by Software Company

A robust after-sale support offered by the software company ensures a smooth utilisation of the technology. Melbourne bookkeepers who are using the software for the first time must look for the type of support offered by the service provider and the time taken to respond to queries and problems.

A prompt support service can reduce downtime. Thus, they must opt for software that comes with quick support and is in tune with the latest bookkeeping trends. The solutions must come from a knowledgeable, expert team of technicians and software developers who can resolve the issues.

Also, there should be multiple communication channels to contact the support team, such as email, phone, live chat, etc. Read online reviews to determine the level of support offered by different companies.          

Wrapping Up

When you plan to make bookkeeping in Melbourne tech-forward and automated, you must look for the best software in the market. Use the tips above to ensure it is within your budget, easy-to-use, safe and has all the desired features needed to manage the finances effectively.          

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