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How to choose the right accounting software for your small business

Business accounting has changed a lot since the old days, and it is about time. One area where it has changed is how easy it is for smaller businesses to do most of their accounting themselves. This used to be a very complex function that absolutely needed the help of an accountant, but nowadays, accounting software is making things easier than ever.

That is if you choose the right solution of course. But there are some tools out there that will be perfect for your organization and/or field of business and help streamline the whole process by making sure that you take advantage of all your benefits and avoid potentially costly mistakes. Here are a few tips to help you find the perfect accounting software for your organization.

What Sector Are You in?

This is probably one of the most important things to consider when picking a CRM for your business. Some tools are better tailored for certain types of enterprises and might not work the best for your organization. However, some of the tools you’ll find on the market are robust enough to handle any company’s needs, no matter their size.

But if you’re a small business with a handful of employees, you won’t have the same needs as a Fortune 500 company. So, look for a tool that is either friendly to small businesses or tailor made specifically for them. There are also some tools that are made specifically for certain sectors, like hospitality, restaurants, retailers, etc., and so it would be a good idea to look at those too.

What is Your Business Model?

Your business’s model will also need to be taken into consideration when picking an accounting tool. Two of the most popular tools for enterprises are FreshBooks and QuickBooks, but they target different groups. For instance, QuickBooks is seen as a better option when it comes to businesses which are actually selling a product, whereas FreshBooks would be a better option for agencies and freelancers for instance.

If you want to learn more about these two options, you can check out this article by PieSync.com. They give a clear rundown of both software options and for whom each tool would work the best. They look at factors like complexity, scalability, and how complete each option is.

Don’t Overlook the Cloud

You should also consider cloud based applications in your search. These have many things going for them and could be a right fit for your organization or your management style. These can be accessed from virtually anywhere, don’t require that you purchase a license, and you won’t have to deal with updates either. And we’re not talking simply about software, but most recent tax code changes as well.

Accounting is a function that you can’t go without in any business. Thankfully, there are plenty of tools that will allow you to stay on top of your books, even with limited accounting knowledge and resources.