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Choosing Accounting Software for Your Start-Up Business
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Select the Right Technology |
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Sourcing accounting software for your start-up business is a crucial decision that can greatly impact your financial management and overall operations. Considering my experience over about two decades, it is undisputed that all accounting software comes prepackaged with some standard functions to manage General ledger, bank, receivables, payables, inventory, and basic financial reports. However, some of the critical things that drive a change in choice of software vary and include but are not limited to, change in business strategy and focus, platform preference (i.e. Cloud /on-premise), reporting structure (i.e. ability to accommodate analytical dimensions across multiple business units and departments, project analysis), integrations and customizations.
It is always right to start your business on a sound accounting footing in order to improve visibility and make informed decisions based on relevant data. Hence, to assist in simplifying the strenuous process of making the right decision for your start-up business, here are some necessary things to consider before selecting accounting software: |
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Business Needs and Goals |
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Define your specific accounting needs and long-term goals. Consider factors like the complexity of your financial transactions, the number of users who will need access, and whether you’ll require features like inventory management or multi-currency support. |
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Scalability |
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Choose a software that can scale as your business grows. Ensure that the software can accommodate increasing transaction volumes, additional users, and new features without causing disruptions to your operations. |
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Ease of Use and User Interface |
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The software should have an intuitive and user-friendly interface. Your team members, even those without extensive accounting backgrounds, should be able to use the software effectively. |
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Integration Capabilities |
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Determine whether the accounting software can integrate with other tools and systems you’re using, such as CRM software,
e-commerce platforms, payment gateways, and payroll systems. Integration is aimed at ensuring seamless processes, the elimination of manual data entry, and redundancy. |
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Cloud-Based vs. On-Premises |
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Decide whether you want a cloud-based accounting software (accessible from anywhere with an internet connection) or an on-premises solution (installed on your local servers).
Cloud-based options often offer more flexibility and convenience. |
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Security and Data Protection |
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Ensure the software provider implements robust security measures to protect your financial data. Look for features like data encryption, secure authentication, and regular data backups. |
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Cost and Pricing Structure |
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Consider your budget and the software’s pricing structure. Some software may charge based on the number of users or transactions. Factor in any potential additional costs, such as training, implementation, and after sales support. |
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After Sales Support |
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Check the level of post-implementation support provided by the software vendor. Quick and responsive support can be crucial if you encounter any issues or have questions while using the software. |
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Reporting and Analytics |
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Evaluate the reporting and analytics capabilities of the software. Access to real-time financial insights and customizable reports can help you make informed decisions. |
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Compliance and Tax Features |
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Ensure the software supports the tax regulations and compliance requirements relevant to your location and industry. Features like automatic tax calculations and tax reporting can save you time and reduce errors. |
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User Reviews and Recommendations |
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Research user reviews and seek recommendations from other business owners or professionals in your industry. Their experiences can provide valuable insights into the software’s performance and suitability. |
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Trial and Demo |
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Whenever possible, take advantage of free trials or demos offered by software providers. This allows you to test the software’s features and functionality before making a commitment. |
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Customization Options |
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Consider whether the software can be customized to align with your specific business processes and workflows. A flexible software can adapt to your unique needs. |
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Training and Onboarding |
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Evaluate the availability of training resources, tutorials, and onboarding support provided by the software vendor. Adequate training can help your team make the most of the software’s features. |
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Long-Term Viability |
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Research the software provider’s reputation, financial stability, and commitment to ongoing updates and improvements. You want to invest in a software solution that will remain relevant and supported in the long term.
By carefully considering these factors, you can choose an accounting software that aligns with your start-up’s needs and sets you up for successful financial management |
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Written by:
Felicia Agbodan
CEO, Multisoft Solutions. |
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Contact us. |
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Second Floor, Benefits Plaza 1, Ring Road Central, Kanda
P.O. Box CT 8148, Cantonments, Accra |
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+233 (0) 302 235 149 |
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sales@multisoftgh.com |
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