How to Decide if Your Company Needs Accounting Software Packages

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When you are trying to decide if your company needs accounting software packages there are a few things to consider. The old method of thinking was that small business accounting needed accounting software packages and not an ERP system. There are many companies out there that are small in size that are just as complex if not more so than larger companies of the same nature. The size of your company no longer matters; instead ask yourself these three simple questions:

  1. What are the plans for your company and when do you anticipate that it will grow?
  2. Depending on the size of your company you may or may not want to start with accounting software packages or ERP packages. The size is not the only factor but it is a good starting point as to what to base your decision on.

  3. What type of company do you own or manage?
  4. If your business is one of a web based business or a traditional business that’s simple and not moving at high volumes, accounting software packages will be just exactly what you need.

  5. How many different kinds of spreadsheets do you use on a daily basis to run your company?
  6. The general rule of thumb is that if your company uses less than ten spreadsheets per day you are going to be fine with accounting software packages.

These three questions will help you decide if it is time to implement accounting software packages into your company or not. Once you have decided that you need financial accounting software there are many different choices out there.

What Exactly do Accounting Software Packages Do?

Accounting software packages are designed to deal with accounting and financial data. They summarize, analyze and present the data and information to you for your company. It records the processes used for accounting and the operations that your company uses on a daily basis. Financial statements, balance sheets, income statements and statements of change regarding finances are all prepared using the accounting software packages. The different accounting software package modules include general ledger, accounts payable, accounts receivable and the management of your cash flow for your company. Accounting software packages also support multiple currencies in case your company decides to expand globally. The ability to manage people and payroll can also be controlled from your accounting software packages.

Accounting Software Packages Summary

Single sources of truth are what accounting software packages are often called. The information is real and in real time and the facts are all there and laid out for you. The information is easy to access so that you can base your decisions on recent facts that are presentable in easy to read spreadsheets. Another good rule of thumb is that if you spend most of your time looking at spreadsheets to verify that information is correct then you should probably upgrade your accounting software package and review your processes for something more streamlined.

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