

Managing a business’s financial accounts is uncharted territory for many small business owners. Many entrepreneurs see handling their own accounting needs as too difficult or even downright scary.
Before you start down the path of researching accounting software platforms, take the time to brush up on the basics. The list below is a good place to start as you work to gain an understanding of the key accounting functions you’ll likely need when running your business.
As you sift through accounting software options looking for the right one for your business, know that there’s no single, perfect solution. Just as every startup or small business is unique, so too are accounting software platforms. Each has its strengths and weaknesses. The question then becomes, which features do you absolutely need to run your business and which are less critical to your success?
Determine which accounting features are the most critical for your business. This is the simplest way to quickly weed out inadequate solutions. If you employ a staff, payroll services with direct deposit that also save you from calculating timecards may belong on the list. If you’re a retailer, having features like inventory management and credit card processing could save you significant time and money.
Different industries have different requirements when it comes to reporting financials. You can find accounting software solutions tailored to the specific needs of construction companies, healthcare organizations, manufacturers, and many others. Knowing your industry’s requirements and best practices should help you determine which accounting functions are ‘must-haves’. If you’re not sure, this is an area worth researching. Industry trade associations and talking with colleagues are great places to start. Another helpful resource is Accounting Software 411, which provides information about niche software options developed for industries with specialized accounting needs.
If the sight of a spreadsheet makes you break out into a nervous sweat, steer clear of software that relies on Excel and CSV file reports or other overly-structured user interface formats. You can find accounting software platforms that operate payroll and invoicing with simple visual reports created specifically for the untrained accounting eye. However, if nothing makes you happier than color-coded pivot charts, then there’s an accounting software solution out there with your name on it, too. Either way, look for an accounting software solution that works the way you do.
What non-accounting-specific requirements do you have for the software you choose? For instance:
Knowing your needs ahead of time will alleviate buyer’s remorse later.
Armed with a knowledge of the types of accounting features available and an understanding of which features you need to manage your financials successfully, it’s time to dive in and determine which software solution is the right fit.
To dig further, check out this side-by-side comparison from PCMag with their picks for the top 10 small business accounting software systems. Many of these solutions offer a free trial so you can try them before you buy.
Whichever accounting software you choose, make sure it checks as many of your ‘must-have’ boxes as possible and is a good fit overall for how you do business. Never be afraid to ask questions and get guidance from a professional accountant. And, once you’ve selected your accounting software, keep learning! Managing your business’ finances will become easier as you continue to learn the ins and outs of small business accounting.
One of the best ways to navigate your business’ accounting needs is with support and guidance from a SCORE mentor. Contact a SCORE mentor today and get your business on track for financial health and success.
Copyright © 2023 SCORE Association, SCORE.org
Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.