When you’re running a business, it’s important to stay on top of your finances. After all, knowing where your money is coming from and where it’s going is crucial to keeping your business in the black. That’s where bookkeeping comes in. Bookkeeping is the process of recording, classifying, and summarizing financial transactions to provide information that can be used by business owners to make informed decisions.
So, how do you choose a bookkeeping program for your business? How do you even know what to use? Where to start? Why do you need to choose wisely? Let’s break it down.
List All Your Current Bookkeeping Needs
The first step in choosing a bookkeeping program is to list out all of your current bookkeeping needs. What do you need the program to do? Do you need it to track inventory? Accept online payments? Send invoices? Once you have a handle on what features you need, you can start narrowing down your options.
List Your Bookkeeping Needs 1 Year from Now
Your bookkeeping needs will likely change as your business grows. So, it’s important to think about what you might need 1 year from now—and even 3 years from now. Will you be expanding into new markets? Adding new products or services? Hiring more employees? All of these factors will impact your choice of a bookkeeping program.
List Your Bookkeeping Needs 3 Years from Now
As we mentioned, it’s important to think about your future bookkeeping needs when choosing a program. Will you still be using the same program in 3 years? 5 years? 10 years? If not, why not? It’s important to choose a bookkeeping program that will grow with your business.
List All the Software You Currently Use
Another important factor to consider is compatibility. Does the bookkeeping software you’re considering integrate with the other software programs you’re using? For example, if you use Quickbooks for accounting, you’ll want to make sure that the bookkeeping software you choose integrates with Quickbooks so that you can avoid having to enter data into both programs separately.
Research & Comparison
Once you’ve considered all of the above factors, it’s time for some good old-fashioned research and comparison. Read reviews, check out pricing plans, and take advantage of free trials where available. By taking the time to do your homework upfront, you can save yourself a lot of headaches—and money—down the road.
Choosing the right bookkeeping program for your business is crucial to keeping your finances in order—but it doesn’t have to be difficult. By taking the time to list out your current and future needs, research different programs, and compare pricing plans, you can find a bookkeeping solution that fits both your budget and your business.