There are number of accounting software available in the market manufactured and designed with industry specific solutions or with general accounting features, for selection of a proper software buyer needs guidance and knowledge. In general opinion accounting software shall be selected according to the industry needs but if only such software is available, other than this there are few other factors those play an important role while choosing an accounting package.
Generally accounting packages provide numerous applications like accounts payable, accounts receivables, general ledger, fixed asset management, bill of material, budgeting, planning and forecasting, cash management, client write-up, customer relationship management, e-commerce, fund accounting, foreign exchange conversions, job costing, inventory control, material resource planning, order entry, payroll, point of sale, project management, reporting, tax preparation, time and billing, and work order management. Some of these applications are for general accounting and some provide industry specific solutions. While selecting the accounting software buyer must keep in his mind the available solutions provided by through applications in different softwares and should focus on those packages which provide industry specific solutions.
There are different reasons for different organizations to opt for accounting software rather than staying on manual accounting. The best buyer's guide while selecting accounting software lies in the answer to the question that why a particular organization needs accounting package. The problems shall be listed according to the priority and then accounting software shall be analyzed, the software coming closest of solving all the problems shall be studied, investigated and tested further. Scalability and customization shall be given importance as software can be a one time purchase only in the case when it is scalable and can be customized according to the present requirements as well as for the future requirements.
Data storage at one centralized location using one single database is a sign of good and well designed software, as this sort of design retrieves data faster, data security is easy and restoration of data requires lesser effort in the advent of any data corruption.
The forms shall have similar looks and feel which makes it easy to understand and gain efficiency while working on the software quickly. Access rights and user identification features shall be effective for avoiding frauds and false entries. The whole software shall be well integrated and there shall be no scope for updating the data in batches, if any accounting software requires such activity it signifies loose design and architecture which may create serious troubles in future.
Another very important point in buyer's guide for choosing accounting package is its flexibility in adopting different taxation rules or changes in the tax structure at any time and as per the user's need. Business practices, taxation rules and accounting regulations keep on changing and sometimes at a short notice, if software is not flexible enough it might become a nightmare for the user. Support and training facilities shall also be given due importance by the buyer before choosing any accounting software as with out these smooth functioning of the software is not possible.