Do You Need Accounting Software For Your Small Business?

If you're anything like me then you dislike with aprocess the bookkeeping for their clients and will
vengeance doing your accounts and taxes.have a working knowledge of the accounting
So how can you make this process easier, lesssoftware package they use. It may be cheaper
painful and cut your accountancy fees?for you to use the same one they do, because
Well buying an accounting software package isthey can advise you how to get it up and running
one way.and will be on hand to answer questions, plus at
First of all you need to decide whether you areyour financial year end when your accounts need
going to keep your accounting records manually,preparing it will be less expensive, believe me to
that is using pen and paper, or whether you arehave a compatible program.
going to computerize the process.I also recommend doing some research yourself,
If you decide that computerizing the process isyou may be able to obtain a demonstration disk
the way to go then you need to decide whetheror download of the most popular accounting
to buy an accounting software package, forsoftware packages and this will give you an idea
example Sage or Quicken, or whether aof how they work and if they are user-friendly.
spreadsheet, such as Microsoft Excel will suit yourThe cost may also be an issue, so you need to
needs better.decide on your budget. But consider how your
As a general rule if you are a cash business thatbusiness is likely to expand - you may outgrow
just needs to record income and expenditure thenthat budget accounting software quickly and end
you are better off using a spreadsheet.up buying the more expensive one anyway.
So, should you choose an accounting softwareAccounting software providers may also try and
package? Yes if:up-sell you a maintenance contract. Save your
- You have customers to whom you extendmoney! In my experience the established
credit and you buy goods in the same waysoftware providers will not have bugs in their
- You process in excess of 50 transactions persystems. They will also try and upgrade you to
monththe next version on a regular basis, but if the
- Your business is an Incorporated Companysoftware is doing everything you need then there
(Limited Company in the UK)andis no need to upgrade.
- You are computer literate or are willing to learn!Of course, you could also pay someone to do
Before choosing the accounting software, speakyour accounts for you, either your accountant or
to your accountants - they will be familiar witha bookkeeper - the payoff being you don't have
the various accounting software packages on theto do it yourself and it frees you up to actually
market and will be able to advise you. Mostrun your business!
accountants use software in their office to