Picking the right bookkeeping software

One of the hardest parts about running a small business is keeping up with the bookkeeping efforts of it. Bookkeeping software will do more than just keep track of your books, it will help you out with payroll, W-2's, quarterly and yearly taxes, inventory, and sales reports. If you are already experienced with bookkeeping, then you can probably figure out how to set up your own software program but for the rest of us, here are some tips to help you pick the right bookkeeping software:

Tip # 1 - Make a list

To help find the right bookkeeping software, you need to know what you want. Make a list of all the things you want your accounting software to do. Perhaps you need it to do more than track your daily sales numbers. Think of things like your accounts payable and accounts receivables. The more you list, the easier it will be to narrow down your choices.

If you outsource your payroll, leave this off the list. If you don't, be sure to look into a software solution that will track your entire payroll for you, it's 10 times easier to have a program than to try and calculate it yourself. Once you have a list in order, start shopping around for the best software solutions.

Tip # 2 - Needs versus Wants

Sure we all WANT the best software solution, but do we really need to spend $500 on it? For small businesses, stick to the basics. Depending upon the type of business you run, you may need to purchase a software solution that is a little more extensive but for the most part QuickBooks online will do just about everything you need. Some web sites like download.com will even offer free trials of accounting software.

This is a great way to test out the software and see if you even like it before you get started with it. Another thing you need to consider is who will be using the software. If you are the only one, then you only need to worry about training yourself on how to use it. However, since most small businesses need to train their employees on how to enter invoices and do a few things with the software, try to find one that is easy to learn and easy to teach to others.

Tip # 3 - Look for upgrades

While it may be a good idea to start out with a smaller version of accounting software, try to purchase one that allows for upgrades in the future. Most small businesses will continue growing and your needs may become a little more extensive. If you buy software that includes upgrades, you won't need to worry about learning a new program. Look into QuickBooks as their upgrades are normally affordable.

Tip # 4 - Support

Since learning new software can be challenging, it is essential to look for a program that comes with good customer support. Take a look at the different ways you can get support. Can you get it online, via telephone, or through the program? Every good software program should come with 24/7 support in case you need help. Depending upon the type of training and help you need, you may need to pay a yearly fee for support, however most software programs will come with 1 year of support for free.

Tip # 5 - Features for price

In order to get the most bang for your buck, you need to check out what types of features the software comes with. If you have a set number in mind as to how much you are willing to spend on the software, take a look and see if you will be able to get everything you need for the price you can afford to pay. If it comes with everything but payroll, take a look at Download.com and look for some cheap payroll software that will integrate with the accounting software you have chosen.