If you’re just starting your search for the right accounting software for your company, there’s a huge variety of options dedicated to different business industries, sizes and work process, which can be a bit overwhelming. Which one should you choose for your company?
The best way to assess an accounting software solution is to get the bigger picture, learn how they are marketed and for what needs they are designed. In general tjere are three main solutios out there: entry-level accounting, small to medium business accounting, and enterprise accounting. In this article we’ll discuss their difference and name a few popular brand for each category.
These software packages are ideal for micro-enterprises and sole proprietorship with five and fewer employees. Entry level accounting provides standard accounting functions like accounts payables and accounts receivables and basic financial reporting.
Expectedly, these are one of the cheapest products you can get; some vendors even offer an entry-level package for free for a limited time as a trial phase. Although these products have basic features, some retailers and even manufacturers use this type of accounting software, especially as an add-on to their existing business systems.
Small to Medium Business Accounting
Aside from the basic features in entry-level products, small to medium accounting software features additional modules for the other aspects of business operations. These include inventory, points-of-sale, and purchases. At this level, the accounting software performs more than just financials; such as, it is referred to as enterprise resource planning (ERP) solution.
Software products under this category allow for up to twenty-five simultaneous users. This is especially helpful for retail businesses with various locations but in need of coordinating their figures real-time.
These accounting software solutions are designed predominantly for large organizations,. They share some similarities with small to business accounting, but their features are more advanced and robust. The number of simultaneous users can also be unlimited. This, obviously, comes at a higher price for the software. Unless you run a big company or have very specific needs that cannot be met by other apps you should avoid investing in such software. There’s no point in paying for advanced features that you won’t use.
Enterprise accounting software products can also feature customer relationship management (often as an add-on). This system allows the company to monitor customer engagement and generate fast response to customer queries, among others.
Likewise, these high-level software products can provide powerful business intelligence and reporting systems. Sets of data can be integrated and processed to generate insights and help users make an informed decision.