The term "accounting" means something different to each business owner, but mostly it carries negativity around compliance and tax which is something most business owners would rather live without. This misconception is a dangerous one as every business needs a good accounting system.

A good accounting system in a business can significantly improve operations, profitability and reduce costs associated with running the business. Most of all a good accounting system means a business owner has access to key information that can help them in running their business by allowing them to make the right decisions in a timely manner

The accounting system that a business needs will vary significantly depending on the complexity of the business, the people in the business and the size of the business so choosing the right one is critical. There are many accounting systems available - the challenge is to find the right accounting software to suit your specific requirements.

Choosing the right accounting system...

So how do you know what the right system is for you. Firstly you need to start at the end. This may sound strange but by understanding what you want from the system you can quickly determine what system is going to fit your business best. So firstly you need to work out what role the system is going to play in your business.

First things first: what should your accounting software do?

The following list provides the different role you might require from your accounting system, starting from the simplest to more complex.

• I just need it to create invoices, my accountant does the rest.
• I want to track my customers & sales, record my expenses and report on profitability
• I need my accounting system to track all areas of my business and give me regular reports on the status of my business
• The system will control the workflow, operational procedures and workings of the business. Without it the business will stop.

As you can see, different needs for different people. Making sure you know what role the system is meant to be playing in your business before you start looking. 

Then, think about putting the building blocks in place for the future

The financial reports of a business will give you a snapshot of that business, so it makes sense that these are the foundations of your accounting system. However it is import to note that they don't give you the whole picture. Remember the financial reports are produced at the end of a time period, so by there very nature they are backwards looking. So while they form the basis you also need to consider the role your accounting system will playing in help you plan for the future. Such tasks include:

• Budgeting & forecasting
• Future dated transactions
• Recurring transactions
• Creditors owing

All these things are about future events, so think about how or if you want your accounting system to manage this for you.

Now, get prepared for selecting the right software product

So far we have determined the role the accounting system will play in your business- we now understand that the basis of our accounting system is knowing our historical position as well as having a view of the future. But what next? The following list provides you with a quick checklist to help you better prepare for selecting the right product.

• Know your current products shortcomings, this is the reason you are looking for a new product so at a minimum you need these to be part of the solution
• Understand in detail what your product does and which features you use. If you don't know, how will you know what to look for in the new product, the last thing you want is to lose the key features you utilise in your existing system.
• Get input from the key people in your business, they know what they need so ask them!
• Finally check with your key partners, these maybe your largest customers, suppliers or even stakeholders, what requirements do they have of your business.

Find the right accounting software for your business

There are so many choices when it comes to choosing the right accounting software, in fact so many choices that a lot of people give up on the process with an attitude of "better the devil you know". It is a time consuming and tiring process to evaluate product especially when you have not been through the process before. So the team at Software Shortlist want to make it easier for you. Rather than trawling through the many available options yourself, why not use Software Shortlist's range of services to find accounting software that is right for you?

Software Shortlist are experts in software selection. After understanding your requirements, we match you up with a shortlist of relevant providers that meet your requirements. "Get A Shortlist" is a completely free service that uses our extensive knowledge and network of approved vendors to find solutions that meet your needs. We then make an introduction so you can complete your evalution process and discuss any questions with the appropriate person.

A few of the many leading accounting products that we have examined, reviewed and/or matched people with include the following:

For more sophisticated or integrated accounting solution, please see our ERP Software page or simply click the button below and tell us your requirements. We have an extensive network and database of accounting providers for both big and small businesses.

Alternatively, you can make use of our other services including:

• Purchase independent reviews of small accounting software packages
• Use our free online comparison tool for small accounting software
• Browse an extensive directory of accounting software solutions

Software Shortlist helps you save time & effort by building a shortlist of accounting systems to meet the unique needs of your business. This leads to a quicker decision and a more profitable business sooner.