A solid business plan will help promote a successful outcome of the venture. A good business plan, along with a competent business coach will go a long way to ensuring success.
However, too many times, the new business man or woman, does not take the time to go thru the process of planning, researching, calculating, consulting with a coach, accountant, lawyer, etc. and consequently the venture ends in failure.
The excuses, given, include not enough time and it cost too much money. Yes, I agree that it does cost money and time, but in most cases you are planning the rest of your working life which deserves such respect and investment. The cost of getting professional planning help is a fraction of your total investment of time and money.
Now, that I have the above out of the way, let’s dig into the accounting software issue.
The business plan preparation process includes the decision of the best accounting software application that will meet the needs of your business process and information requirements.
In order to know the criteria to base your decision on, you will have to consider the following:
- Inventory details
- Sales transactions details
- Foreign currency transactions involved
- Billing expenses to customers
- Time tracking and billing to customers
- Number of users to access accounting software
- Your accountant’s knowledge and available support of the accounting software (crucial)
- Accounting software cost
- Software compatibility to local tax laws and sales tax collection
- Size of user base for the software application (recommended for future vendor support and updates to changing tax laws)
The above are a few factors to consider. The Entrepreneur cannot be expected to know the answers to all the above items; however, in consultation with his or her accountant or business coach, then the best match should be attainable.
There are several small business accounting applications available in the marketplace today and in most cases anyone application would look after most of the bookkeeping needs of a business. However, there can be some limitations in certain modules for some business. This limitation could be avoided by proper planning as discussed above.
We have provided accounting software review videos on this site to help you get an understanding of the various features offered by each application:
it is much simpler to start with the best software match from the start than try and make the switch later on and incur additional accounting fees with the transition. Of course, any significant business growth will demand a more robust accounting system which will be more affordable with a greater level of cash flow.
In summary, take the time to plan your accounting software needs before you start your business operations, get the necessary training and setup executed before you open your doors for business.