Whether you choose to perform your bookkeeping tasks on your own, hire an accountant, or outsource it, bookkeeping software is key to simplifying the process and saving your time and budget.
Also known as accounting software, UK bookkeeping software is used to document and process business transactions. Simply put, it can be considered an electronic ledger that automates bookkeeping operations, thereby freeing up valuable resources for businesses.
Some of the primary bookkeeping functions you can accomplish using bookkeeping software are payroll management, billing, and invoicing. tax filing, generation of financial reports, recording payable accounts, and so on.
Let’s delve into the key factors to keep in mind when buying bookkeeping software.
Advantages of an Online Bookkeeping Software
There are two kinds of bookkeeping software available in the market: one that you can install on the computer and the other that can be used online. The latter comes with a range of advantages:
Online bookkeeping software works wonders with other business apps too. For instance, you can use third-party software as your point of sales and the data will still flow directly into your online accounts.
What to Keep in Mind When Buying a UK Bookkeeping Software
Look for the following factors before investing in UK bookkeeping software:
- It is important to determine if the software has all the functionalities that your business demands. If the software doesn’t, then go for an add-on software to fill the gaps. Of course, this will add to your cost.
Most accounting software has the core features that are essential for most businesses. These core features include invoices of sales & purchases and bank reconciliations. Anything beyond these will be specific and will come with extra cost.
Consider how the extra cost will impact your business and workflow and make a decision.
- Not so long ago, a standard desktop accounting software would demand a few hundred pounds to be paid upfront. In the modern world, small businesses do not prefer immobile desktop solutions and opt for seamless cloud software that can connect to other cloud software with ease. They ask for a reasonable amount based on the required level of features as a subscription every month (more features, more charges).
- You should consider who will be using your account and for what. The accounting software should allow your staff to have different levels of access to your business accounts.
For instance, your software should prevent unauthorized entry of your sales staff into all your financial details but at the same time should provide access to credit control and sales invoicing.
- Think about to what extent your accounting software can support you when things do not move in your favour. Of course, you have your accountant who can guide you, but that support comes with a cost ( particularly considering how much they charge per hour).
Some software support teams only provide Email support. This may not give you a timely and complete solution. Go for software that provides 24/7 service support over the phone.
- While many accountants are competent to handle any accounting software, go for software that your accountant is most comfortable with.
This will help them support you in situations when things get out of control. Also, handling comfortable software will enable them to add more value to their service (be it helping you with shortcuts or suggesting efficient add-ons, and so on).
- Think ahead and consider if your software can still be the one for you after 5 or 10 years. You might wish to add payroll, stocks, or e-commerce features to the already existing functionalities. See if it gives you adequate room to grow in the future. If the answer is yes, then the software is hands down the best solution.
The above-mentioned factors must be given thorough consideration before zeroing in on your UK bookkeeping software. This is because shifting to new accounting software is a time-consuming, expensive, and highly stressful process. It is also a tedious task that demands a lot of planning and thinking.
Let’s hope this article takes off the burden on your shoulders and helps you make a wise decision.
If you are looking to get started with a UK bookkeeping software that delivers results, we recommend trying out Dext bookkeeping software. It is a new-age, cloud-based system that automates an entire range of bookkeeping functions while ensuring top-level security and efficiency.