How to choose an Accounting System

Selecting accounting software is a critical business decision. In fact, when properly selected, installed, and implemented, accounting software can contribute fundamental benefits to your organization, including

better decision-making capabilities,
improved cash flow,
more accurate information and control,
and a real foundation for growth.

That’s why understanding your business’s financial information capabilities and weaknesses is vital to selecting the right solution.

What are the criteria I would use when choosing an accounting software?

1. Easy to use.Even though the software is tagged "user friendly", you need to take a 'test drive' to see whether the software is really easy to use.

A quick acid test will be how fast the user can pick up the basic functionality of the software during a demo presentation. An easy-to-use software would facilitate easy transfer of knowledge between old and new staff. The user should also be able to pick up the functionality from the user-manuals, or from a quick call to the consultant.

For example, the sales input screen should be intuitive in that the sales staff should be able to know by looking at the screen what to put in which field, and where to go if a printout is required.

Of course with proper training, the learning becomes even faster, but at least, a staff with initiative should be able to get by before training can be arranged.

2. Simplify the process
The software should simplify the processes of issuing invoices, purchase order, payment vouchers, cheques, statements and other documents required in a business. Preferably, these documents can be easily customised by the user, and can be electronically sent (by email etc) to the recipients.

3. Reports - customisable?
Most off the shelf accounting software produce standard reports. If you need unique reports, you should look for a software that allows you to customise your own reports (but make sure you have the capability to do your own customisation). Most times, customisation comes with a cost. So consider whether the data can be exported to other commonly-used applications like Microsoft Excel or other spreadsheet applications for further analysis.

4. SupportSupport should come in the form of
- onscreen help/tips
- user manual - print / online
- local one-on-one support with a consultant

5. Easy to trace data within the software.
The data, once keyed into the system, should be easily traced and tracked, either by transaction date, keywords, customer name, supplier code etc. It should allow for 'drill down' to the source documents from all reports.

6. Features
Most important, the software should meet your basic requirement. If you deal in foreign currencies, make sure the software can handle multi-currency transactions.
If you have multiple warehouse, make sure that the software can identify stocks by locations.