BBB Business Tip: Choosing the best accounting software for your small business

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Accounting software offers numerous benefits to small businesses, from reducing errors in financial records to generating sales forecasts. With the right accounting software, you can streamline your financial processes and reduce errors. However, finding the best accounting software for your business can be challenging. Here are some considerations to keep in mind as you navigate the options.

When shopping for accounting software, consider the following:

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1. Think about industry-specific options.

Explore software tailored to your industry's needs, such as retail, professional services, or manufacturing. While these options may offer niche-specific features, they can also be more challenging to learn. If your business doesn't require industry-specific features, consider general accounting software. 

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2. Plan for future growth.

Your accounting needs will increase as your business grows, so take this into account. Choose software that can accommodate your business’s current needs and future growth. Find out if it’s scalable and allows for easy upgrades as your business expands. 

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3. Choose between cloud-based or in-house software.

Many small businesses favor cloud-based software due to its accessibility, scalability, and cost-effectiveness for future upgrades. However, this type of storage may pose security risks as data can be accessed remotely via a secure login ID and password. On the other hand, in-house storage systems offer enhanced security but require professional installation, updates, and ongoing maintenance. When deciding between the two options, it's important to weigh data security, maintenance costs, and preferences. 

Keep in mind these pros and cons when considering either cloud-based or in-house software.

Pros

Cons

Cloud-based

Accessibility
Scalability
Cost-effective

Security risks
Remote access

In-house

Enhanced security

Professional installation and updates
Ongoing maintenance

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4. Ask how your data will be protected.

Your accounting software will store sensitive business information, so prioritize software providers prioritizing data security. Most trustworthy companies host their applications and data on dedicated servers, so inquire about their data storage and protection measures to ensure your sensitive business information remains safe.  

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5. Look for great customer support.

As you learn to use your accounting software, and even once you are skilled at using it, you are likely to experience minor problems from time to time. Look for software providers with robust customer support, including online resources and responsive help features. Check BBB.org for reviews and complaints to gauge customer satisfaction and support quality. 

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6. Stay within your budget.

While accounting software can save time and money, ensure it fits within your budget. Determine essential features versus optional ones and opt for a solution that meets your needs without exceeding your budget. 

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7. Consider compatibility.

Consider compatibility with existing software and systems used in your business. Determine if integration with online banking, inventory management, or credit card processing is necessary for seamless operations. 

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8. Consult your accountant.

If your business already employs an accountant, they will be a valuable source of information for you as you consider which software to use. Ask their opinion about any options you are considering. If you don’t employ an accountant, you can still contact one to inquire what accounting software they recommend for small businesses. Their expertise can help you make an informed decision that aligns with your business’s financial needs. Search BBB.org to find a BBB Accredited accountant near you. 

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Choosing the right accounting software is essential for small business owners to streamline financial processes and make informed decisions.

By considering industry-specific options, planning for growth, prioritizing data protection, and seeking expert advice, you can find the best accounting software to support your business's success. For additional guidance, search BBB.org and leverage customer reviews to inform your decision-making process. 