Categories: Business

What Kind Of An Accounting Tool Do You Need For Your Business?

Accounting tools have led to automation and have helped many business owners save a lot of valuable time. Using accounting software also reduces human error and improves the efficiency of your business operation.

The accounting software that is used by most businesses can be broadly classified into:

Online accounting software: Cloud or internet-based software that can be accessed anytime, anywhere as long as you have an internet connection.
Offline accounting software: Device integrated software that can be only accessed from a workstation where the software is installed, although some offline software can have cloud connectivity to offline servers.

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Online Or Offline, Which Is Better When It Comes To Accounting?

Offline accounting software is generally used by micro-enterprises whereas online accounting software can be used by businesses of any scale. Although offline accounting software applications that are installed in local servers are efficient and rich in features, the online accounting technology has caught up. Nowadays, online accounting tools provide a host of features that help businesses save a lot of time and money.

Besides this, choosing an offline accounting tool over an online one can leave you with some glaring disadvantages such as:

Low Accessibility: Offline accounting tools are often restricted to a particular device thereby making it difficult for multiple people to access the accounting data. Due to recent events, there is also a high possibility of your workforce working remotely which again makes offline accounting tools obsolete.
Risk of Data Loss: Since the data will be stored in the device itself, any disruption such as hardware failure or forgetting a password can potentially lead you to lose your valuable data if the information wasn’t backed up.
Lack of Accountability: If more than one user is accessing the offline accounting software from one device, it becomes impossible to find out who may have caused a critical error in the accounts which also makes coordination difficult.
Difficult to Upgrade & Low Flexibility: While online accounting tools get automatically upgraded as soon as there is a change in accounting policies, offline tools will require the software to be re-installed which becomes tedious. If your device becomes outdated and is not compatible with the software, you might have to incur additional costs.
Lack of Scalability: If your business grows, the offline accounting software might become redundant as you may need to operate from multiple branches.

Thus, we highly recommend purchasing online accounting software over an offline one.

Things To Consider While Purchasing An Online Accounting Tool

Since an accounting tool will be a vital part of your business, it is important to make sure that you do some research before buying any particular type of accounting software. You must first understand your company’s needs which will allow you to gauge the daily functionality requirements you need to smoothly run your business.

Here are a few points to keep in mind, while searching for an accounting tool that matches the needs of your business:

Find What Suits Your Needs

Most businesses can use accounting software such as Quickbooks or Deskera Books straight out-of-the-box. Through these tools, vendors set up templates as well as reporting features. However, in some cases, your business might need industry-specific software, such as nonprofit accounting software, construction accounting software, or point-of-sale accounting software to meet the unique accounting and reporting needs of your industry.

Ease Of Use

Your staff will have to be trained to use the accounting software that you purchase. Thus, it is crucial to choose an accounting tool that not only meets your needs but is also easy to learn. Though there may be better accounting tools available in the market, your business will not see the benefits of these programs if your staff does not know how to use them properly.

Employee turnover might cause unnecessary delays as your new staff might not be able to grasp the functioning of complicated software. Thus, choosing a simple, easy-to-use accounting software program from vendors such as Deskera, Intuit, or Sage (formerly known as Peachtree) may be the way to go for your business.

Data Security Needs

Accounting data security is always important because you will want to make sure your personal information, your employee’s personal information, and your customer’s information is protected. If you operate in industries, such as healthcare, where you have additional compliance requirements such as HIPPA, penalties for these violations could reach as much as $500,000. Thus, a breach can be devastating for your business.

Our Recommendations

All things considered, each business has its own set of requirements when it comes to picking the right accounting tool. However, based on the points mentioned in the above section, you can trust Quickbooks or Deskera for your accounting needs. Although the two seem more or less similar when it comes to their features, there are a lot of key differences between the two. Deskera has some of the most advanced inventory features in its accounting tool and also gives you access to things like CRM, business card scanner, attendance, etc.

We have also included a quick overview of where Deskera Books stands amidst its competition.

It might thus cover a wide array of accounting solutions for your business and it also has a thriving community of users who can vouch for it. The active Facebook community consists of their senior team members as well and the founder himself takes time to interact with the community. This helps the software develop according to the needs of the users making it one of the most user-friendly tools in the market. You can also sign up for a 15-day free trial without even giving away your credit card information!

We hope that this article answers your question and helps you make the right decision when it comes to purchasing the best accounting software for your business.

If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.