Which bookkeeping software should I use for my business?

It’s a question I get asked all the time. But it’s a great question because it means you’re taking your business seriously!

And the answer is...

...It depends on your specific business and what you need!

Frustrating, right?

But you can make an informed decision!

Consider these items when picking a bookkeeping software for your unique business.

Price

As a cost conscious person, the first thing I had to discuss is price. While it’s important to be smart with your business expenses it’s also important to think long term.

When evaluating bookkeeping software look at all the different pricing levels and consider what features are included.

Switching between softwares can be cumbersome and can result in a loss of data. While it’s not impossible, it’s best to make a good choice for your business both now and in the future.

Consider the cost of the features you might need in the future and factor that into your selection.

Functionality

This point goes hand in hand with the price discussion, consider what you know you need now and what you think you’ll need in the future.

If you’re currently a one woman shop, but you’re pretty sure you’ll hire people in a few years look at the payroll features of your software options (and their related prices).

Are you currently tracking inventory or detailed time spent on a client in a spreadsheet, but know that’ll get out of hand once you grow?

Consider software features that will save you time in those areas.

Ability To Grow

Just because you’re evaluating software on what you might need it to do in the future doesn’t mean you have to sign up for that level of the software today.

When picking a software check into its policies about upgrading and downgrading levels. Some softwares let you go either direction at any time, others only let you move up and never down.

This is also a good time to point out that some bookkeeping softwares are single entry software (as opposed to the standard double entry).

This means that it only records the revenue and expense side of your transactions, not the asset and liability side.

While that may be fine for where you are now it may not be fine for where you want to go in the future.

If you need to track accounts receivable (what your clients owe you), accounts payable (what you owe to your suppliers), or owner's equity (what you own in the business) you will need double entry software.

Accountant / Bookkeeper Access

At some point every successful business will need a bookkeeper, accountant, and/or tax preparer. Will the software you are considering allow access?

Some softwares allow unlimited access at all levels, while others set caps on the number of regular users and accounting users with an option to pay more to get more access.

This again is a good time to think about the future plans for your business and consider how many users might need access to your software.

You might need to grant access to someone so they can generate client invoices, and give someone else access to enter supplier invoices, and someone else to reconcile your cash account.

As your business grows you should separate accounting duties, and that requires more logins. Understand what your software offers from a user perspective and how much additional users could cost you in the future.

Payroll Needs

While we discussed this a bit in the functionality section it’s too important not to bring up again. Payroll can be a major pain, there are so many calculations, and tax considerations.

Not to mention the fact that this is someone else’s livelihood we’re talking about, you can’t afford to do this wrong.

If you need payroll features, or think you’ll need it in the future make sure to review each software’s features for payroll calculation, whether it can do electronic tax filings, and payments.

Also pay attention to the cost of these service as it can vary drastically.

Mobile Options

You’re an on the go Entrepreneur, wouldn’t it be great if your bookkeeping went with you?

Meet a client for lunch, if your software’s got a mobile app you can snap a picture of that receipt and upload it immediately.

Need to know how much you’ve spent on facebook ads right this second? Whip out your phone and take a look. The information is truly at your fingertips.

Consider mobile options in your software search.

Security

How secure is your financial data?

If you’ve got your bank accounts directly connected to your bookkeeping software you want to know that your data is secure.

Most softwares have bank level security but this is always something you want to double check before you make your selection.

Integrations with Apps / Softwares

Do you use Stripe or Square to collect payments?

Use Acuity Scheduling to schedule your client appointments?

You can directly connect these services to some bookkeeping softwares to save time on data entry.

Additionally several software shortcomings can be taken care of with apps that integrate into your software.

Need to be able to track time, but your favorite software doesn’t do it?

There’s an app for that!

But be warned, these apps/softwares can sometimes come with additional fees.

If your favorite software option has a hole, check to see if it can be filled with an integrated app.

Whew! Feels like we went through a ton of info there but these are all important things to consider when picking a bookkeeping software!

Don’t let yourself get bogged down here, sign up for some free trials and pick the best option you can, you can switch later.

Wan my professional opinion? I'm happy to help you pick out a software and get it set up. Reach out here!