From bookkeeping to generating financial reports, every business need depends on selecting the right accounting software, as it can help facilitate financial processes and make them more accurate and time-efficient.
With so many available options, it’s important to understand what key features and benefits various software solutions offer. This article will dive deep into eight key features to consider for accounting software selection and benefits that will put your operations at an edge.
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Key Features to Consider
Here are eight key features:
1. User-Friendly Interface
Any accounting software should be user-friendly. If it is too complex, then it may infuriate users and result in errors. Thus, look for software with an intuitive design and easy use. This especially holds true when the team does not possess extensive accounting knowledge. A simple interface will enable users to comfortably perform their tasks with less training.
2. Integration Capabilities
Your accounting software should seamlessly integrate with other tools and platforms your business uses, such as customer relationship management (CRM) systems, e-commerce platforms, and payroll services.
This integration allows for a more streamlined workflow and reduces the need for manual data entry, minimizing errors. For instance, if you’re using QuickBooks Online Essentials vs Plus, ensure that it can connect with your existing systems to enhance productivity.
3. Reporting and Analytics
Comprehensive reporting is absolutely essential when it comes to monitoring the financial health of your business. In today’s fast-paced environment, having a robust system that offers detailed, customized reporting on key financial metrics—such as income, expenses, cash flow, and other critical performance indicators (KPIs)—is vital.
This allows you to gain a clear, up-to-date view of your business’s financial situation, helping you identify trends and areas that may need attention. Advanced analytics and real-time data insights can empower you to make well-informed, data-driven decisions that can positively impact your company’s growth and stability.
Additionally, the ability to quickly generate essential financial documents, such as profit and loss statements, balance sheets, and cash flow reports, within minutes is crucial. These reports not only provide a snapshot of your financial position but also enable you to spot potential issues or opportunities early on, ensuring your business remains on a solid financial footing.
4. Mobile Access
In today’s fast-paced, mobile-driven world, the ability to access your accounting software on the go is an increasingly important feature. With the rise of mobile technology, many accounting software providers have developed mobile apps, allowing business owners and financial managers to manage their finances conveniently from anywhere, whether at the office, on the road, or even at a remote location. This flexibility is especially beneficial for business owners who travel frequently or need to stay connected to their financial data outside of regular office hours.
A mobile-friendly solution is not just about convenience—it’s about empowering you to make timely, informed decisions no matter where you are. With a well-designed mobile app, you can easily track income and expenses, monitor cash flow, generate invoices, and view key financial reports in real time.
For instance, you might need to approve a transaction while at a client meeting, check on the balance sheet during a flight, or approve payroll from a hotel room—all of which can be done with ease if your accounting software supports mobile functionality.
5. Customer Support
One of the most critical features to consider when choosing accounting software is reliable and responsive customer support. Even the most intuitive and user-friendly software can present challenges or technical issues at times, and having access to knowledgeable and accessible support can make a significant difference in resolving those issues quickly and efficiently. You need a provider who offers multiple support channels, such as phone, chat, and email, to ensure you can reach them in the way that is most convenient for you.
Phone support is particularly valuable for urgent issues where a more personalized and immediate response is required, while chat support can be helpful for quick questions or minor troubleshooting during business hours. Email support allows for more detailed inquiries and follow-ups, particularly when dealing with complex issues or needing written documentation for future reference.
In addition to direct support, many software providers offer self-service resources, such as comprehensive online tutorials, step-by-step guides, and FAQs. These resources allow you to find answers to common questions and learn how to use the software more effectively on your own, saving time and minimizing disruptions to your workflow.
6. Scalability
As your business grows, so too does the complexity of managing its financials. At this stage, it becomes even more important to choose accounting software that can scale alongside your business. Selecting a flexible software solution with the ability to add features, users, or capabilities as your needs evolve ensures you don’t outgrow your system too quickly. You want a solution that can support the increasing demands of your organization, whether that’s expanding your team or adding more advanced financial management tools as your business diversifies.
For example, QuickBooks Online offers tiered plans that allow you to choose the version that best suits your current needs while offering the option to upgrade as your business expands. QuickBooks Online Plus, for instance, supports more users than the Essentials plan, making it ideal for businesses that are growing and need to give multiple team members access to the system.
In addition to the increased user capacity, QuickBooks Online Plus also includes more advanced features such as inventory management, project profitability tracking, and budgeting tools—capabilities that become increasingly important as your business scales.
7. Security Features
When selecting accounting software for your business, data security should be one of your top priorities. Financial data is highly sensitive, and any breach could not only result in financial loss but also damage your business’s reputation and customer trust. Therefore, it’s essential to choose software that implements robust security measures to protect your financial information from unauthorized access, cyberattacks, and other threats.
Key security features to look for include data encryption, which ensures that your financial data is scrambled and unreadable to unauthorized individuals, both while it’s being transmitted and while it’s stored on servers. Encryption protects your sensitive financial information from hackers who might intercept your data, particularly when it’s being shared online.
Another essential security measure is two-factor authentication (2FA). This adds an additional layer of protection by requiring not only a username and password to access the software but also a second form of verification—such as a one-time code sent to your mobile device or email. This significantly reduces the likelihood of unauthorized access, even if your password is compromised.
8. Customization Options
Besides all the above features, customization may be considered another important key feature of accounting software selection. Every business has its own needs and workflows. For better usability and effectiveness, it will be good if a company can customize the software based on their needs. The best solution will definitely allow you to customize invoices, reports, dashboards, and workflows according to your preference and business model.
Benefits of Choosing the Right Accounting Software
Now that we’ve covered the key features let’s explore some of the benefits of selecting the right accounting software for your business.
Improved Accuracy
Some of the key benefits of deploying a reliable accounting software include heightened accuracy in financial reporting. Most calculations are automated, hence reducing or eliminating human errors due to manual entry of data or calculations. Applications like QuickBooks Online Essentials vs Plus maintain your books accurate and up-to-date.
Time Savings
Accounting software automates a lot of the routine work in invoicing approval, expense tracking, and report generation. This saves oodles of time in comparison to bookkeeping methods done manually, which allows you and your team to pay more attention to the core areas of your business rather than getting bogged down by the papers.
Better Financial Management
With comprehensive reporting tools, you have better visibility into how your business performs over time. Better insights enable you to make more informed decisions when budgeting, forecasting, and allocating resources-all very important for sustainability.
Simplified Compliance
Compliances with taxation laws and regulations help the company avoid any penalties and fines. Most of the accounting software solutions are designed in a way that helps the business stay compliant with automated tax rate updates and provide the needed forms for filing taxes correctly and on time.
Improved Cash Flow Management
Effective cash flow management is something every business should strive for. Accounting software can help track your income and expenses in real-time, therefore showing you where your money is at any moment. This visibility will provide you with better planning for future expenses and investments.
Knowing the differences in features and benefits becomes all the more important when comparing QuickBooks online essentials vs Plus. The Essentials plan provides basic functionalities that would suffice for service-based businesses, while Plus adds advanced features such as inventory and project profitability tracking for product-based businesses or for those dealing with multiple projects.
What Is EcomBalance?
EcomBalance is a monthly bookkeeping service specialized for eCommerce companies selling on Amazon, Shopify, eBay, Etsy, WooCommerce, & other eCommerce channels.
We take monthly bookkeeping off your plate and deliver you your financial statements by the 15th or 20th of each month.
You’ll have your Profit and Loss Statement, Balance Sheet, and Cash Flow Statement ready for analysis each month so you and your business partners can make better business decisions.
Interested in learning more? Schedule a call with our CEO, Nathan Hirsch.
And here’s some free resources:
- Monthly Finance Meeting Agenda
- 9 Steps to Master Your Ecommerce Bookkeeping Checklist
- The Ultimate Guide on Finding an Ecommerce Virtual Bookkeeping Service
- What Is a Profit and Loss Statement?
- How to Read & Interpret a Cash Flow Statement
- How to Read a Balance Sheet & Truly Understand It
Wrap-up
Basically, the selection of appropriate accounting software should consider ease of use, compatibility with other programs, reporting capabilities, accessibility on mobile devices, customer support, scalability, and security. Increased accuracy, time-saving, improved financial management, compliance in an easy way, and better cash flow management are the other reasons for informed choices based on business needs.
By carefully considering these factors before making a decision to take on a solution-say, QuickBooks Online Essentials or Plus-one can ensure the selected accounting system will sustain successful growth.
