To help you evaluate accounting software or accountancy services, we’ve produced a checklist of different accounting requirements to prioritise what really matters to your business. In our list below you decide on the importance to your business of any given topic.
We recommend you consider at least two solutions, which you compare against your needs. If a solution meets your need it can simply be a yes or no answer, alternatively, if you feel you want to be a bit more systematic, you can score the match on a scale of 1 to 5. By completing this process, you ensure there’s a close match between what you actually want and what the supplier can deliver. Too often firms fail to think about their needs before choosing a solution.
Be mindful that a solution that meets your core business needs, but doesn’t have the full range of features, may still be the right package for you, not least as the providers in our analysis regularly release new functionality.
Accounting checklist of requirements
Hosting, mobile data and security
Small business accounting providers are almost all now securely hosting data in the cloud, with web-enabled secure platforms. Not all providers though have the same richness of functionality available on mobile devices, so if your business has such a need, then evaluating which features are mobile enabled will be important.
Dashboard and ease of customisation
Having an up-to-date picture of how your business is performing is vital. This could relate to cash, debtors, bills, daily trading or inventory.
Having a one-stop view of all your key performance measures is referred to as your dashboard.
Packages come with pre-configured dashboards, which can be helpful. How easy these are to adapt – and whether you are likely to have a major need for adaption – may determine how important customisation is to you. However, be aware that customisation cuts both ways and overly complex configuration can result in frustration and failure to utilise the system’s potential. Fewer features, or more standard reports, may suit your business better.
Search facilities, audit trails and access to all historic records
Being able to efficiently navigate your accounting records is vital. You’ll likely be worse off as a business if you put your faith in technology, but don’t know where to find data that you used to happily access in paper or spreadsheets!
Having a complete picture of your customers’ trading history or supplier orders means you can deal with issues quickly and professionally.
A set of key reports will help with routine processes, while customisable reports will help with what requirements that are specific to your business. Again, be aware of over-complicated configuration (see the Dashboards section).
Support and tutorials
However good the accounting software, it’s always going to work best and add most value to your business if you’re using it smartly. Time spent checking out each platforms support content, FAQs, video tutorials and live help will give you a feel for how seriously the provider invests in customer support.
Links to your accountant, do-it-yourself functionality or both
Most cloud-based accounting packages now enable businesses to give accountants access to their online books records for day-to-day activities or periodic reporting.
More confident businesses may choose to perform all their regulatory responsibilities, such as filing returns, themselves. Others may choose to have their accountant complete annual returns while they deal with day-to-day activities.
Inventory
Accounting packages now provide relatively sophisticated inventory management. Keeping track of inventory levels means managing and controlling your business so you have just the right amount of stock to meet peaks and troughs of customer demand.
Fixed assets
Keeping track of your fixed assets in the core accounting system means you have all the key financial data for your business in one place.
Quotes
An efficient, brandable, online quote feature ensures your business looks professional with customers. Packages now enable businesses to send and track estimates and invoices electronically so there’s no break in the process.
Invoicing
Tracking orders from quotes through to produced invoices not only reduces administration and separate processes, it helps keep your cash flow under control, as can also be tied to payment systems.
Purchase orders
Keeping on top of your purchasing process keeps stock at optimal levels to meet customer demand.
Expenses
If you have a business with a lot of expenses, management and recording of receipts
with easy scan, photo or uploading ensures this aspect of your business is kept under tight control with good visibility.
Bill payment
Paying suppliers accurately and on time ensures your supply chain is a source of strength – it also reduces time and administration and gives you an accurate cash flow position.
Bank connections
Connect to your bank so transactions automatically import into the accounting package, allowing you to keep track of payments moving in and out of your bank account. High volume retail businesses need to pay particularly close attention to this area.
Payroll
Keeping staff and HMRC paid on time and with accurate payments, professional pay slips and relevant reporting, will help ensure you have happy staff and regulatory compliance.
VAT online
A package that meets the needs of HMRC April 2019 VAT ‘Making Tax Digital’ is a must-have. An online VAT processing system that automatically generates VAT returns and payments with supporting reports and audit trail will ensure you’re not left fretting about late payments or inaccurate filings.
Corporation tax
Knowing what your corporation tax bill is ensures you keep on top of your cash flow and legal obligations.
Income tax
Small business accounting packages now have self-assessment functionality with payments, particularly relevant for sole-traders.
Multi-currency
If you trade in currencies other than sterling, either with customers or suppliers, then keeping accurate currency records is important for your business.
Price and package
Packages typically price on a subscription basis for a certain number of users, which can be extended as your business grows.
Price is also based on the package of features that a business uses. Pricing is quite closely set across different accounting packages, meaning providers are typically chosen by the features your business needs, rather than price.
Reporting
Ad-hoc and periodic reporting of your key financial reports, including profit and loss (P&L), balance sheet and cash flow.
Hosting, mobile data and security
Small business accounting providers are almost all now securely hosting data in the cloud, with web-enabled secure platforms. Not all providers though have the same richness of functionality available on mobile devices, so if your business has such a need, then evaluating which features are mobile enabled will be important.
Dashboard and ease of customisation
Having an up-to-date picture of how your business is performing is vital. This could relate to cash, debtors, bills, daily trading or inventory.
Having a one-stop view of all your key performance measures is referred to as your dashboard.
Packages come with pre-configured dashboards, which can be helpful. How easy these are to adapt – and whether you are likely to have a major need for adaption – may determine how important customisation is to you. However, be aware that customisation cuts both ways and overly complex configuration can result in frustration and failure to utilise the system’s potential. Fewer features, or more standard reports, may suit your business better.
Search facilities, audit trails and access to all historic records
Being able to efficiently navigate your accounting records is vital. You’ll likely be worse off as a business if you put your faith in technology, but don’t know where to find data that you used to happily access in paper or spreadsheets!
Having a complete picture of your customers’ trading history or supplier orders means you can deal with issues quickly and professionally.
A set of key reports will help with routine processes, while customisable reports will help with what requirements that are specific to your business. Again, be aware of over-complicated configuration (see the Dashboards section).
Support and tutorials
However good the accounting software, it’s always going to work best and add most value to your business if you’re using it smartly. Time spent checking out each platforms support content, FAQs, video tutorials and live help will give you a feel for how seriously the provider invests in customer support.
Links to your accountant, do-it-yourself functionality or both
Most cloud-based accounting packages now enable businesses to give accountants access to their online books records for day-to-day activities or periodic reporting.
More confident businesses may choose to perform all their regulatory responsibilities, such as filing returns, themselves. Others may choose to have their accountant complete annual returns while they deal with day-to-day activities.
Inventory
Accounting packages now provide relatively sophisticated inventory management. Keeping track of inventory levels means managing and controlling your business so you have just the right amount of stock to meet peaks and troughs of customer demand.
Fixed assets
Keeping track of your fixed assets in the core accounting system means you have all the key financial data for your business in one place.
Quotes
An efficient, brandable, online quote feature ensures your business looks professional with customers. Packages now enable businesses to send and track estimates and invoices electronically so there’s no break in the process.
Invoicing
Tracking orders from quotes through to produced invoices not only reduces administration and separate processes, it helps keep your cash flow under control, as can also be tied to payment systems.
Purchase orders
Keeping on top of your purchasing process keeps stock at optimal levels to meet customer demand.
Expenses
If you have a business with a lot of expenses, management and recording of receipts
with easy scan, photo or uploading ensures this aspect of your business is kept under tight control with good visibility.
Bill payment
Paying suppliers accurately and on time ensures your supply chain is a source of strength – it also reduces time and administration and gives you an accurate cash flow position.
Bank connections
Connect to your bank so transactions automatically import into the accounting package, allowing you to keep track of payments moving in and out of your bank account. High volume retail businesses need to pay particularly close attention to this area.
Payroll
Keeping staff and HMRC paid on time and with accurate payments, professional pay slips and relevant reporting, will help ensure you have happy staff and regulatory compliance.
VAT online
A package that meets the needs of HMRC April 2019 VAT ‘Making Tax Digital’ is a must-have. An online VAT processing system that automatically generates VAT returns and payments with supporting reports and audit trail will ensure you’re not left fretting about late payments or inaccurate filings.
Corporation tax
Knowing what your corporation tax bill is ensures you keep on top of your cash flow and legal obligations.
Income tax
Small business accounting packages now have self-assessment functionality with payments, particularly relevant for sole-traders.
Multi-currency
If you trade in currencies other than sterling, either with customers or suppliers, then keeping accurate currency records is important for your business.
Price and package
Packages typically price on a subscription basis for a certain number of users, which can be extended as your business grows.
Price is also based on the package of features that a business uses. Pricing is quite closely set across different accounting packages, meaning providers are typically chosen by the features your business needs, rather than price.
Reporting
Ad-hoc and periodic reporting of your key financial reports, including profit and loss (P&L), balance sheet and cash flow.