Best practices for accounting software for most of the companies means rapid, problem free execution of financial processes in comparison to slow and time consuming execution of financial operations. Accounting software best practices are no different from those of ERP or other software practices and have many dimensions. They are not simple yet they are easy to be followed if only user pay enough importance to them and can be a deciding factor between success and failure of the software.
Selection of proper accounting software is the first and most important step, whether it is a small, midsize or large organization the accounting software shall be researched and well understood by the management and current financial processes and activities shall be matched with options available in the software.
Scalability and customization are other features which become vital in later stages and if these are analyzed in the beginning can prove very beneficial. Scalability helps in improving the software performance according to the growing needs of the company when business expands, customization provides ease of use, accurate compliance with the ongoing system and easy understanding of the software.
Testing the software according to the taxation rules, accounting regulations and business practices of the company is the best practice before finalizing the accounting software. Taxation rules are bound to change and even business practices require changes according to the market trends. The accounting software shall be able to adjust without customization according to these inevitable changes.
Data storage shall be centralized and use of one database for all the applications is the best practice not only for accounting software but for any software. One database provides easy data storage and retrieval, data security and avoids data redundancy. Backup and restoration of data is also easy with one database.
Forms shall have similar looks and feel, online help facilities for the user and effective necessary checks while inputting the data are best practices for accounting software. Irrelevant fields shall be deactivated to avoid wrong feeding of data for e.g. software shall deactivate all the fields related to cash payment on the form if user has selected the option of cash received on a cash transaction form.
Dry run of the software before implementation is the best practice for any organization for any accounting software. The data shall be collected from each and every department of the organization carefully and supplied to the software and proper checking of the output shall be done. This provides clear picture whether software has sufficient features to fulfill the present requirements or not.
Step by step implementation of the software is wiser than going into it all out. One by one transfer of departments on the system makes the process less tedious and troublesome and if there is any problem or shortcoming in the software which stops the implementation for a while, the normal functioning of the organization is not stopped during that phase.
Imparting proper training to the staff of the company before the implementation is another best practice for accounting software. The existing man power of the company is the best to work upon the new system and they shall be given complete training to understand and use the software.