As a wood flooring professional, you choose the best tools to get the job done. Good equipment is a key to a quality job, and it's a big investment that you take seriously. A major purchase such as a big machine is not an impulse decision — you decide what features you want and need to get the job done, and look for the best one that's within your budget. You comparison shop and research different models by talking to salespeople and fellow contractors. You try out several models until you find one that feels right to you. Your livelihood depends on your equipment, so you choose it wisely.
Choosing the right accounting software for your business can be just as crucial to your business. There are dozens of accounting software options toc hoose from, and sifting through all the choices can be time consuming. Because many small business owners are unfamiliar with accounting software, they make the mistake of relying solely on salespeople to help them with their purchase. Although the salesperson may seem knowledgeable about the software, they are there to sell you a product. Generally they do not have any accounting knowledge or know specifics about your business's software needs. Some software manufacturers and salespeople make misleading claims, bragging that their software is so easy to use no accounting knowledge is needed.
Don't be misled. Any accounting software on the market is going to have a learning curve, and, depending on your knowledge and business needs, could require a significant time investment. As with other tools of your business, the quality of what you get out of them will depend largely on the quality that goes in.
Determine your needs
Before you begin to shop for accounting software, take inventory of your business's accounting needs. Who will be using the software. What is their level of expertise? What are the specific features you will require and how much money are you willing to spend on software. If you have little accounting knowledge, then the most basic software may be all you can logistically handle. If you have an experienced bookkeeper on staff, or are planning on having multiple users, then a basic software package may not suit your needs. And of course, cost is always a consideration. Accounting software packages range in price from less than $100 to well over $10,000. Before investing your money in a package, do your homework and determine what you want to get out of the software.
Shop around
Once you have determined criteria for accounting software, it's time to explore the many options. A good place to start your search is on the Internet. Although most of the information you get will be from the software companies that want to sell their products, their Web sites area good way to determine whether a particular software package is a viable candidate. Visit stores and check online product reviews to see which ones are popular. Check with colleagues in the industry who have similar-sized businesses to find out what works for them.
After you're familiar with the software packages on the market, make a list of all the different software packages you are considering and the specific features each product has or does not have. At this point, you may be able to eliminate some obvious poor choices. If a product doesn't have a module you need or is simply too expensive, cross it off your list right away.
Once your list contains some software options that may work for you, narrow it even further. Evaluate and compare each product's features more extensively. Go back to the vendors' Web sites or call them and ask specific questions. Many software companies offer a free trial of their products. However, if you decide to try a product on a free trial basis, don't expect too much. Most trial periods will not be long enough for you to figure out all the software's features and how to properly use them. You may need to invest a significant amount of time to accurately determine its full capabilities. At the very least, it can be a good way to see if the product is something you even feel comfortable using.
When you contact a software vendor,many will connect you with a reseller in your area. The reseller will be able to demonstrate the product and give you extensive information about its features. Be aware, though, that the reseller is there to sell products. With that in mind, take the opportunity to ask pertinent questions. One useful thing the reseller can do is provide you with references of other businesses similar to yours that have purchased the product. Contacting these other businesses that are using a software package you are interested in may be invaluable in helping you make your purchase decision.
Now that you have narrowed your list to the packages that will work for your business, it's time to make a decision. If you have followed the steps of comparing your needs to each product, the decision will probably be an obvious one. If not, choosing the product that is easiest to use on a day-to-day basis will probably be your best choice. The last thing you want is a product that is too hard to use, and choosing the wrong software can be disastrous to your business and leave you with buyer's remorse.
Selecting the best accounting software for your business is a decision that, for some business owners, will seem obvious right from the start; for others, it may take months of comparison shopping. Since every business situation is unique, carefully determining what features are important to your business will help you purchase the right software package. Along with your nailer, buffer and big machine, your accounting software is a valuable tool your business owns, so choose it wisely.
Taking Inventory
Answering these questions will give you parameters for looking at accounting software options.
What is your level of expertise?
- Do you have basic bookkeeping knowledge? Can you assign basic income and expense transactions to the appropriate accounts as well as prepare a bank reconciliation?
- Are you an experienced bookkeeper? Do you know how to prepare a profit and loss statement and a balance sheet?
- Are you an accountant? Can you interpret the profit and loss statement and the balance sheet? Do you understand the concept of properly matching transactions to the appropriate period?
What specific features your business will require?
- Will you handle your own payroll, or will you be hire an outside payroll processor?
- Do you need to track inventory?
- Will you need extensive job costing capabilities?
- Will you be a single user, or work on a network?
- Do you have large accounts receivables and payables?
How much money are you willing to spend?
- Would you like to spend the least amount as possible at this time, knowing that in the future you may need to upgrade?
- Are you willing to spend a little more money and time to learn a product your business will be able to grow with, which may serve you for a long time?
- Are you willing to spend top dollar to have the best accounting software for your business needs?
