It’s happened to the best of us. Deadlines are around the corner, customer requests are pouring in, and day-to-day tasks have never been more overwhelming. But then you realize there’s a bunch of accounting paperwork that is pending, payroll requires your immediate attention, and executive responsibilities are imminent.
You have no option but to push back core business activities and attend to accounting responsibilities on priority.
If you are a business owner in the UK, frequent delays such as these can cause serious troubles; your productivity can take a hit, your relationship with customers/clients can get affected, and eventually, profitability can deteriorate. Not to mention, it can hang you out to dry during the tax season.
The only solution for business owners, here, is to save valuable time on administrative accounting duties through automation so they can position themselves in a manner that they are more freely available for customers and clients.
This is where UK bookkeeping software comes into play.
But how do you choose the optimum bookkeeping software for your business? How do you know which solution is best suited for your business needs?
In this article, we’ll dive into the factors businesses should consider before purchasing bookkeeping software.
4 factors to keep in mind when purchasing a bookkeeping software
- Identify your business needs
Before you head to the market to compare UK bookkeeping software, take some and figure out what your business requirements are and what functionalities matter most to you. Having clarity in this respect will help you evaluate solutions better, and find one best suited for you.
Ask yourself — What are your business goals? Are you eyeing scalability? Do you have plans to expand your business? If yes, what would the scope of your expansion be? For example, your plan could be to target 15% of the current market in the next five years, or you probably wish to launch 5 new outlets.
Based on your long-term goals, find out what features would help you achieve your targets. For instance, one of the top UK bookkeeping software, Dext, is designed to accommodate businesses of all sizes regardless of their scalability goals.
This is important because switching to new accounting software is complicated If you purchase one now and have a change of mind, later on, it might cause unnecessary delays.
- Figure out who will use the software
How effectively you can put your bookkeeping software to use depends on who will use it. This is why you must involve the concerned user in the buying process.
So, whether it is your accountant, financial team, or even you, find out what features are important to the user and whether they need specific skills to be able to use the software effectively.
- Determine which features matter the most to you
Find out what your current pain points are and finalize a software based on them.
Easy access to key management information can give you – and advisers like your accountant or a consultant – the data you need to improve your company and accelerate growth.
What types of information are most important for your business? For example, as a retailer, you may need instant access to stock information.
What book-keeping and financial management tasks do you need to perform?
It’s possible you need an accounting solution for basic book-keeping or you are probably looking to streamline cash flow management. Plenty of businesses even look to manage budgeting by leveraging analytical reports on day-to-day finance operations.
This also includes payroll management, employee reimbursements, tax filing, etc.
Also, consider any special needs you might have. For instance, some businesses cater to a local market while others operate internationally and even have multiple businesses. So, here it is important to know if your UK bookkeeping software can handle financial accounting in different currencies.
Other features to validate are whether your software seamlessly integrates with other accounting products, third-party applications, eCommerce solutions, and so on.
- Consider costs and budget
This one is very obvious. You need to buy bookkeeping software that fits your budget. You will find plenty of options in the market with different packages for large enterprises and small and medium-sized businesses.
Bookkeeping software – when used properly – can significantly optimize administrative operations and ensure valuable time is not wasted on tasks that can be automated.
We recommend going with a cloud-based solution that ensures connectivity around the clock and provides up-to-date visibility into your financial status. Dext happens to be an excellent option here. With its advanced functionalities, seamless cloud benefits, and expert reporting capabilities, Dext can help you achieve the increased productivity and efficiency in business.
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