Questions to Ask Yourself before Purchasing an Accounting Software

Having an accounting software is important for any size or type of business. But it’s also important that you, as the owner, should first give some thought whether getting an accounting software is right for your business, or what kind of software would best fit the accounting needs of your business. To help you, here is a list of questions that will help you decide whether or not it’s worth purchasing an accounting software.

1. What features do I need from the accounting software?

Just like any product, accounting software programs also have its fair share of strengths and weaknesses. They are not designed to be a one-size-fits-all type of program. Before you decide on getting an accounting software, you should first consider the features that you’d want the software to have. If you’re still starting out your Singapore business, then simple accounting programs like Peachtree or QuickBooks would be ideal for your accounting needs.

However, some small businesses operate on a greater scale and are relying on other specialized programs to manage the other aspects of their business. Therefore, you’d want make sure that the accounting program that you’ll get won’t just keep your records accurately but can also work with other software applications that you’ll use.

2. Is the software capable of growing alongside my business?

One important thing that you should consider before purchasing an accounting software program like from Singapore is its capacity to grow alongside your business and meet its increasing accounting needs. If you’re fortunate enough to expand your one-person operations into a multinational corporation in Singapore, then you’ll also need to upgrade your accounting system to a higher-end Enterprise Resource Planning (ERP) system.

3. What kind of security can the software provide?

Each accounting software program has its own level of security and controls. This is an important factor to consider, since you’ll want to ensure that the software you’ll purchase is capable of meeting all the legal and regulatory requirements when it comes to data security.

You’d want to ensure that you have control over the sensitive personal information of your business, especially if it will be hosted online. If you have any inquiries regarding data security, you can consult an IT security expert to help you choose an accounting software that is appropriate and would meet your security needs.

4. Do I want the software to be hosted in cloud?

Cloud computing has become popular recently, but it’s not ideal for all types of business. Going with a cloud-based accounting software may be beneficial as you or anyone from your company can access the information they need from any mobile device that is connected to the Internet. Also, you won’t need to maintain your software every now and then, nor remember to back up your accounting data.

One may find these functions rather beneficial and helpful, but if you’re an owner who wants to have control over who gets to access your company’s financial data, then a cloud-based program isn’t for you. With cloud computing, you’ll lose control over your data and updates, and you’ll lose access to the program in case the server of the host company goes down.

5. Can I afford this software?

Purchasing an accounting software that has all the features that you want might be too costly for you, especially if you’re only managing a small business. With this, you’ll have cost as your limiting factor when it comes to choosing an accounting software. If your business is already starting to grow, you can simply upgrade your software to increase its functionality.

Some software companies in Singapore offer a base program with some accounting modules or additional features that is available for purchase. Do consider these additions, as you might need it later when you already have the funds to upgrade your program.

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