3 Essential Qualities of Your Business’ Accounting System
The best way to manage your finances is to use an accounting system that works well for you. There’s no single “best accounting system” because every company has different needs and goals. That said, there are certain qualities shared by most good systems.
Accuracy
It doesn’t matter how many bells and whistles a piece of accounting software offers if it’s inaccurate or slow at crunching numbers. If anyone tells you, “It’s a computer program, it doesn’t make mistakes,” they’re probably trying to sell you a computer program that makes mistakes.
For one thing, any modern accounting software solution is a complicated thing under the hood. Bugs are not uncommon. But a tool designed by responsible developers will be tested thoroughly before going on sale.
It should also have regular updates (at least monthly) so problems can be fixed as soon as possible. You don’t want your accounting system crashing just after you’ve entered your expenses from last quarter!
Flexibility
Most businesses need more functionality out of their accounting solutions than simply tracking income and expenses. Some companies might only care about managing payroll, while others would rather see all financial data laid out neatly in front of them.
You need to be able to adapt to changes as your business grows. This means having a flexible accounting system that allows you to add features as needed. It also means being able to easily make changes to your existing system. The more time and work it would take to implement those changes, the less likely you are to get around to making them.
Some people think this flexibility comes with extra cost; however, if done right, customizing an accounting platform shouldn’t be prohibitively expensive. In fact, the opposite may be true–you’ll save money in the long run since you won’t have to switch platforms later.
Cost-effectiveness
Of course, price is always something to keep in mind. Not everyone wants to spend tens of thousands of dollars on new technology each year, especially not when other options exist. However, sometimes paying a little bit up front for a high quality product pays off over the years.
A cheap accounting solution might seem like a bargain upfront, but could end up costing you far more down the road due to lack of sufficient features or lack of effective support.
When evaluating pricing models, look beyond initial costs. Many cloud computing services charge based on usage instead of charging a flat fee per month. These plans allow you to pay only for what you actually use, which keeps your overall cost low.
To find out how AcctVantage ERP can support your ongoing business growth and success, click here to get in touch with us.
