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Software’s ability to fit the business

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Entry-level bookkeeping software systems try to be “one size fits all.” They allow you to customize the chart of accounts to make sense for different types of businesses. For example, for a computer consultant, it doesn’t make any sense to have inventory accounts showing up in the books. However, each software system has strengths and weaknesses for every type of business. Some handle real-time inventory better than others. Some track billable time better. Having a good understanding of what’s important to track for your particular business will help you assess which package is best for you — and help you advise clients on choosing bookkeeping software as well.

As you can see, there are more considerations than just price when purchasing accounting software. Spend time to understand all of the critical considerations. You should also ask fellow business owners what they use and how it’s working for them. Another important source of information is your accountant. One caveat is to make sure that your accountant is familiar and comfortable with all of the popular accounting packages. For example, if your accountant has worked only with QuickBooks, more than likely it will be QuickBooks that he or she recommends. Not exactly an objective opinion! All of the major software websites have either screen shots of the program or downloadable test versions. This gives you the opportunity to “test drive” the package to make sure you’re comfortable with it.

Selecting your bookkeeping software is an important task in your small business and may seem daunting. Keep in mind, however, that most systems can be converted to other systems fairly painlessly. Mistakes are not terminal. Take your time up front in the selection process and you will be making the best decision regardless of the system you choose.

Start & Run a Bookkeeping Business

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