Choosing the Right Accounting Software for Your Small Business

As a small business leader, choosing the right accounting software is a crucial decision that can impact your business’s financial management. 

Four factors to consider when choosing small business accounting software

Here are some key factors to consider when choosing the right accounting software for your small business:

  • Scale
  • Help
  • Cost
  • Cloud vs. local

Let’s look at each of these factors in detail to help you make the best decision for your business.

Scale

Choosing an accounting package that can scale with your business is important. 

Businesses typically keep their current accounting software for seven years or more due to the substantial cost of migrating sales, expenses, and financial data. 

When researching, consider a solution that will meet your needs today and in the future.

Market Share

Choose accounting software that is well-known and widely used. 

With over 50% market share in the US, QuickBooks has substantially more knowledgeable bookkeepers, accountants, and consultants than its closest competitor, Xero, which has about 10% market share.

Cost

Most cloud accounting packages for small businesses are similarly priced. Some even offer “entry-level” discounts that support strictly limited customers or vendors. 

Unless you are confident you will not exceed those limits for the next 5 to 7 years, the cost of migration to a better solution may outweigh the limited benefit of the month-to-month fee.

Cloud vs. Local

While desktop-only accounting software is still in use, we strongly encourage all our customers to transition to cloud versions of software. 

Software vendors have far more resources to spend on cybersecurity than any small company does, and they have more at stake should a breach occur.

Choosing the Right Version of QuickBooks

After evaluating the above criteria, we believe that QuickBooks Online is the best fit for most small businesses. Once you’ve decided on QBO, you will need to select the version that will work best for your needs.

QuickBooks offers Simple Start, Essentials Plus, and Advanced. All versions offer unlimited customers, vendors, employees, and products and unlimited invoices.

  • Simple Start – Ideal for a single user to track invoices and expenses, and generate reports.
  • Online Essentials – Perfect if you have a small team and start separating duties. For example, the owner may view financial reports, and an office manager enters invoices and pays bills. This level is typically good for companies with 3-5 employees.
  • Online Plus – Great for larger teams needing more separation of duties. It allows data organization by location or business line and includes budgeting tools. As the organization transitions from 5 to 10 or more employees, Online Plus supports refined workflows and reporting.
  • Online Advanced – The most feature-rich version. It includes data backups, Excel integration, and batch data management.

The monthly cost difference between the lowest and highest-priced versions equals a few hours of outsourced bookkeeping. Choose wisely and invest in a solution supporting your business’s growth and success. Remember, the right accounting software is an investment in your business’s future.

In Conclusion

Choosing the right accounting software is a critical decision that can significantly impact your business’s financial management. But remember, you’re not alone in this process. Our team of experts is here to help you every step of the way.

We can assist you in selecting the right software that fits your business needs, guide you through the migration process, and ensure you’re making the most of your chosen solution. Our goal is to make this transition as smooth as possible for you and your team.

Don’t hesitate to reach out to us for any questions or concerns. We’re committed to helping your business succeed. Contact us today to get started on your journey to better financial management.