Choosing Accounting Software

2. Identify Your Needs

Take a 'top-down' approach when selecting accounting software. Outline your ideal system and decide your priorities. This gives software suppliers a basis from which to prepare a proposal, and reduces the chance of having to make costly changes later.

2.1 What are your business objectives?

For example, you may aim to capture ten per cent of a given market within five years, or to open ten new shops across the UK.

2.2 Who is going to use the software?

• Involve the employees who are going to be directly affected by changes you make. What would your employees like to see in a future accounting system, and what are the limitations of your existing system?
• Fully involve your accountants from the start. Check they will be able to use the information generated by the software to produce your end-of-year accounts and to satisfy the requirements of the annual audit.

2.3 What management information is crucial to the running of your business?

You may need to involve an accountant or outside consultant to help determine what information you will need to extract from the system.

• A consultant may be able to identify new ways in which you can use your financial data to improve your business.

2.4 Can the software handle all the book-keeping tasks you need it to perform?

These might include:

• Sales, invoicing and receipts.
• Purchases and payments.
• Banking and cash management.
• VAT, tax and accounts.
• Stock control and payroll.

2.5 What special needs does your business have?

• For example, do you have more than one business, or trade internationally?
• If you run an online business, can the software integrate with your e-commerce solution? If you buy and sell in different countries, check that the software can cope with the currencies you deal in.