Choosing Bookkeeping/Accounts Software

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Choosing bookkeeping or accounting software for your business or organisation is a big step.  There is so much available on the market, with new vendors and products coming out all the time.

So, how do you decide which is the best for you?

How much you are prepared to pay?  There is such range of prices available to suit every budget.  But there may be a trade off between cost and some “advanced features.” It’s then a matter of deciding whether you can do without advanced features, or are they a “must-have”?  Closely linked to this, consider the  ”opportunity cost” factor:  Is the time you will potentially save worth the price?

What do you need it to do?  Will it help you to keep on top of your bookkeeping, may be  and give you meaningful information?  (or can you customize it, so that it does?).  Do you need it to be compatible with other software that you use?  Do you need stock control or order processing? Do you require PayPal imports?  Would bank statement imports be essential or just a “nice-to-have”?  Additional features and functionality come at a price.  Is it going to save you time and money?

Who is going to use the software and how good are they at bookkeeping and IT?  There are some very user-friendly packages out there, which do not require knowledge of double-entry bookkeeping.  Similarly, there are others, which are less suited to inexperienced users.  Consider how intuitive it is, how easy is it to correct errors, does it have an “audit trail”? (which is handy, if you do happen to make an error, so that you or your accountant can track back to see what’s gone wrong).  How fool-proof does it need to be?

What size is  your business and what are your growth plans? Some software is aimed specifically at small businesses, but might not “scale” as well as others.  Converting from one package to another is always possible, with some packages its easier than others.   It’s also additional hassle you could probably do without.

Are you VAT registered?  If you are, it’s worth considering going for bookkeeping/accounts software that flags VAT transactions once they have been included in a VAT return.  This is because, with the best will in the world, there will be occasions when you have late VAT transactions – that relate to a VAT quarter or period that you’ve already completed the VAT return for.  If the software flags VAT transactions, it will automatically pick up these “late” transactions, if you ask it to, on your next VAT return – without you having to manually adjust for them.   Do you run a specific VAT scheme, such as the VAT margin scheme?  If so, you will need to look out for specialist software or special “bolt-ons” or “add-ons”.  OR calculate your VAT outside the software, and do some manually adjustments via a journal.

Is it compatible with your computer?  MostUK software that’s installed on a computer is written for the Windows environment.

What does your accountant recommend?  Assuming that your accountant has a good knowledge of your business (and if they don’t – why on earth not?) they might be able to recommend software worth considering.   (The added bonus of asking your accountant for a recommendation is that you may achieve lower fees using software approved by your accountant).

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