The accounting software market is expected to be worth $19.59 billion over the next four years.
It’s easy to see why. More businesses are migrating from manual to automated financial management. After all, automation improves accounting accuracy.
But, many are not reaping the full benefits of their software. Why? Because they make accounting software shopping mistakes.
The good news is that these mistakes are avoidable. You won’t have to revert to manual financial management if you know how to avoid them.
Here’s a list of some of the most common mistakes and how you can avoid them.
1. Failing to Assess Your Company’s Needs
There are many kinds of accounting software in the market today. They all promise to transform your finances.
While this may be true, different systems focus on different areas. So you’ll need to assess your business needs to shortlist the most relevant software for your company.
Do you own an auto repair shop and your focus lies on tracking your profit margins? Do you want a financial report at the end of each day? If so, this auto repair shop software may be your solution.
Assessing your current challenges can also highlight your needs. So, identify accounting processes that would benefit from automation. Then, find accounting software that focuses on the specific challenges.
2. Not Comparing Software Prices
It’s tempting to buy the first software you come across. But, it’s essential to compare pricing.
Chances are, there is another solution offering similar benefits at a lower price. So, shop around before you make your decision. But don’t choose deals that appear too good to be true.
Compare pricing while also thinking about your company’s needs. Find a reasonably priced system with all the accounting software features you want.
3. Failing to Involve All Relevant Parties
Buying software is not a one-person job. Sure, researching will give you valuable information on your options. But, it’s not enough.
It’s best to decide which software to buy with its expected users. The accounting software will predominantly affect the accounting department. But, it’ll also affect other departments like HR and IT.
So, create a team from various departments to help you choose the right software. Remember, involving employees in decision-making makes them feel valued. This is a crucial part of effective change management.
4. Failing to Review a Software’s Ratings
Some business owners spend a lot of money on software, only to realize that it’s not reliable when it’s too late. So, how do you avoid falling victim to unreliable software?
All the tools you need to make an informed decision are online. Ensure you check an accounting software’s online customer reviews before buying it.
The reviews will reveal the good and the bad about your potential system. You can’t get this information from sellers. Pay close attention to the bad reviews.
Will the software’s weaknesses affect your core accounting functions? If so, look for another alternative. Luckily, there are many options, so you don’t have to settle on only one.
5. Not Assessing a System’s Security
Data is any company’s greatest asset. Moving your financial information to the cloud protects your data from potential break-ins.
But, it also exposes it to cyber threats. Hackers have found ways to steal companies’ information without leaving traces.
So, you need to assess how your accounting software provider prevents cyber threats. Are there effective security measures in their system? Have there been reports of attacks in the past?
The right provider will update their security safeguards regularly. After all, hackers are evolving, and so should they.
6. Failing to Assess Scalability
Your company will not always be the same size it is today. Growth is one of the main aims of any business. So it’s essential to have your company’s growth in mind when choosing accounting software.
Choose software that’s adjustable to your changing business needs. This way, you won’t need to look for other options every time your business expands.
7. Not Focusing on Point-of-Sale (POS) Integration
Not all accounting systems offer POS integration. So, assuming that your software will provide POS integration is a big mistake. Ensure that you ask your software provider about this before signing any papers.
POS integration is crucial for small businesses. It automates transactions, eliminating the need for manual data entry. Therefore, it’s a must-have for accounting accuracy.
8. Failing to Assess the Software’s Support System
Let’s face it; you’re sure to face some problems when using your accounting software. There may be inherent issues with your software. Or you may not know how to use the software.
In either case, your software provider should have the means to help you. Most of them have an online help system that connects users to agents who can help them. Depending on your location, some may send agents to help you face-to-face.
But, not all providers have reliable support systems. Look at what other clients say about a provider’s customer support system. If there are any complaints, look for another option.
9. Neglecting the Value of Mobile Access
Did you know that roughly 52% of employees would quit office jobs for remote ones? It’s unlikely that employees will revert to pre-pandemic behavior after the pandemic.
Thus, it’d be best if you had an accounting solution that supports the modern employee. The right software will support mobile access. This way, your employees can work on the go on their phones and tablets.
10. Failing to Assess a System’s Agility
Your accounting software cannot be effective as a stand-alone. You’ll need to integrate it with other solutions to streamline business processes.
So, ensure your chosen software is agile enough. It should work seamlessly with other systems for data accuracy. Determining agility can be a complex process, so you may need to consult with a software engineer.
Get Value by Avoiding these Accounting Software Shopping Mistakes
Accounting software shopping mistakes are costly. They translate to not only losing money but also losing valuable data.
Luckily, you can avoid them. All you need to do is assess all the factors discussed in this article.
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