One of the most important types of business management software is accountancy and financial software. Even the smallest business needs to keep track of income and expenditure. As the company grows it will need other financial software in order to keep track of payroll, invoices and other financial matters.
Basic accounting packages for small businesses are available from a wide range of suppliers. The market is dominated by Microsoft, Intuit and Sage. When buying an accounting package it's essential to choose software that is written specifically for your local region and it is aware of local taxation laws and regulations. Many accounts packages also come supplied with the necessary connectivity so that is is possible to submit tax returns to the tax authorities such as the IRS and HMRC.
Many accounts packages are designed to be installed on a desktop PC or Mac. An alternative is to use accountancy software that is accessed over the Internet (so called Software as a Service - SaaS). Using an internet based accounts package means there is no software to install, and it can be accessed from any computer with a web browser. Online accounts packages often charge a monthly fee so there is no need to spend a lot of money up front to buy an expensive accounts package.
As your business grows you might like to outsource your accounting to an accountant, or hire a bookkeeper, or even hire a member of staff to handle the financial side of the business. When hiring an accountant or bookkeeper it's wise to select one of the industry standard accounts packages such as Sage or QuickBooks, otherwise you might have problems finding someone who is familiar with a less well known package.
It's often useful to find an accounts package that is modular and can grow as your small business grows. Popular accounts packages modules include:
- Payroll - for handling the salaries and tax details of your employees.
- Invoicing tracking - for sending accurate invoices to your customers, and keeping track of late payers.
- Leasing - for keeping details of any business equipment that is on lease or hire purchase.
- VAT/Sales tax - retail businesses normally have to collect sales tax on behalf of governments.
- Stock/inventory - keeping track of stock is essential for retail businesses. Good stock inventory systems will also integrate with a website in order to provide customers with up to date information about your product availability.