Stephen Howe | Director | Times 3 Technologies | mail me |
It is projected that the global accounting software market will grow to some R660 billion by 2033. The automation of accounting procedures and financial activities across industries has completely changed the international business landscape.
In most large companies, manual data capturing processes have been relegated to the past, and it is only in the most extreme cases that these are still implemented. However, as unprecedented as this growth has been, many companies still struggle to find accounting software that works best for them.
The learning curve
The consequences can be dire if the technology is not in alignment with business needs. Vast sums of money are in play and having accounting solutions that end-users find difficult to navigate can wreak havoc. The so-called “learning curve” for employees to understand the software can also be very time-consuming as well as costly.
It is also worth noting that accounting software adoption among small businesses is not nearly as high as it is among bigger firms. Some studies have shown that as much as 51% of small businesses do not use any form of financial management software, many believing the use of spreadsheets has served them well so far and there is no need to change.
I understand the reluctance on the part of small-business owners, modern accounting solutions are not as daunting as they are made out to be. “Tech-speak” can confuse people, but the reality is that this software is quite simple to use.
Because modern accounting software is cloud-based, it can be accessed from any internet-enabled device at any time. It ultimately allows one to perform all the tasks and or functions that would have been done manually, just faster and more efficiently with numerous additional benefits.
Focus on getting the basics right
One of the biggest advantages is that it saves time, freeing up staff to focus on optimising other aspects of the business. But it also eradicates errors that can occur with manual inputting, making for more accurate data. And, because owners and managers are given financial insights in real time, decisions can be made at a faster pace than before.
Business owners are advised to focus on getting the basics right when selecting accounting software. Delving into complex add-ons and functionalities can be overwhelming, particularly when employees accustomed to doing things a certain way need to be convinced that a new solution will make their lives easier.
Software with the following basic functionalities will help make the transition from manual to digital accounting much simpler:
- An easy-to-use interface that enables staff to find what they need without having to go through arduous training sessions.
- The software should be easy to customise to align with current ways of working.
- The solution must easily integrate into existing systems.
- Customer support that can be accessed at any time is essential.
- Easy-to-understand training manuals should be accessible at the click of a mouse.
In conclusion
For me, one of the key functions of solid, easy-to-use software is flexibility. No two businesses are the same, and every company has its own experiences of inventory management and processing orders. That means the software must be adaptable to the business, not the other way round.
I think once businesses, particularly smaller ones, understand that modern software makes this possible, there will be far greater uptake by the SME sector.
Related FAQs: Optimising accounting software selection
Q: What are the key factors to consider when choosing accounting software for your business?
A: When choosing accounting software for your business, key factors to consider include the software’s ability to automate financial processes, its user-friendly interface, data security measures, ongoing support and whether it can integrate with other tools you already use.
Q: How can accounting software help streamline my business’s financial management?
A: Accounting software can help streamline your business’s financial management by automating tasks like invoicing, payroll and expense tracking. This reduces manual data entry, minimises errors and allows for real-time financial data access.
Q: What is the importance of accounting software in small businesses?
A: The importance of accounting software in small businesses lies in its ability to simplify bookkeeping and financial management. It helps maintain accurate financial records, provides insights into cash flow and ensures compliance with tax regulations.
Q: What types of accounting software solutions are available?
A: There are various accounting software solutions available, including cloud-based accounting software, comprehensive accounting software for larger enterprises and simple accounting options for small businesses. Popular choices for SMEs include QuickBooks, Sage and Xero.
Q: How can I choose the right accounting software for my specific needs?
A: To choose the right accounting software for your specific needs, identify your business requirements, assess the software’s features, evaluate its scalability and consider user reviews. It’s essential to ensure that the software can integrate seamlessly with your existing systems.
Q: Can accounting software automate my bookkeeping processes?
A: Yes, accounting software can automate many bookkeeping processes, such as data entry, invoice generation and expense tracking. This automation helps save time and reduces the risk of human error.
Q: What are some benefits of using cloud-based accounting software?
A: Benefits of using cloud-based accounting software include accessibility from any location, real-time updates, enhanced data security and the ability to collaborate seamlessly with accountants and financial professionals.
Q: How does accounting software support financial data management?
A: Accounting software supports financial data management by providing tools for tracking financial records, generating reports and analysing financial performance. This aids in informed decision-making and strategic planning for your business.
Q: Why is ongoing support important when selecting accounting software?
A: Ongoing support is important when selecting accounting software because it ensures you can address any issues that arise, receive updates for new features and have access to assistance for optimising your accounting system as your business grows.
