Whether a small business or a big one, managing finances can turn out to be quite frustrating. With the introduction of cloud accounting applications, accounting has become quite easy. Such financial solutions help you manage multiple accounting functionalities, including invoicing, billing, bookkeeping, payroll, inventory management, and many more.
However, before purchasing the best cloud-based accounting software for your business, several factors need to be considered. Here, we would be talking about all the important points that you need to keep in mind before purchasing a cloud accounting software.
Factors to Consider While Purchasing a Cloud-Based Accounting Software
Every accounting software offers an advanced list of features to its users. However, some features are essential for your business to function properly. Such features ease the hassle of bookkeeping while making the process of accounting much easier. Following are the points to remember before purchasing the best cloud-based accounting software for your business:
- User interface
User experience is one thing that can directly impact the whole accounting process. Thus, it is one of the most important factors to consider before purchasing accounting software. One must ensure that the software is easy to grasp. One can take a free trial of the accounting software before purchasing to find out whether it works for you.
- Cloud-based data processing
Traditionally, one had to manually add the data to spreadsheets for managing the process of accounting. However, with cloud-based accounting software, one can access the financial information of the business anytime and from any part of the world. Also, in most of the software solutions, one can easily collaborate with other team members.
- Multi-currency Support and Swift Payroll Processing
This is one of the most important factors to consider before purchasing the best cloud-based accounting software for your business. Several free accounting tools do not offer payroll. One shouldn’t buy individual programs for payroll, accounting, invoicing, or bookkeeping. The accounting software needs to include all these features, along with payroll processing.
Additionally, in case you run a multi-national or global business, for example, an eCommerce store, ensure that you include a multi-currency feature in the accounting software. Support for global currency or the ability of the software to generate bills or invoices in the client’s currency is of utmost importance.
- Integration of Multiple Bank Accounts
It should be easy to add a new bank account, and one should need only a few clicks to get it done. In case you need a lot of paperwork to just connect with your bank, you need to consider switching to or purchasing another accounting software. This is an important feature as most businesses require more than one bank account to function effectively.
- Functionality and Scalability
Accounting software should be a one-stop solution that can keep up with the scalability of the business as the company grows. Extensions and add-ons are offered by several popular software firms. Such integrations ensure that the dynamic functionality of the software can be easily improved. One should also ensure that the accounting software is compatible with at least the standard applications, such as Dropbox and email tools.
- Check for Data Security and Support
Unresponsive support can make things much more difficult. In the case of some free programs, it can even end up taking a lot of time to contact the email support. A business needs to make sure that the program is highly secure and includes different features, such as phone support, live chat as well as other options for quick help. Also, one should ensure that the accounting software that you are looking to purchase is credible enough. You can read online reviews for finding out how genuine the accounting software is.
Choosing the best cloud-based accounting software might not be easy, especially for a small business or a start-up. To make the purchase easier, we have listed above the major factors that one should consider before purchasing new accounting software for business.