FD Blog - Formations Direct Blog
FD Blog - Formations Direct Blog
Blog Home
Back To Main Site
Blog Categories
    Accounting and Finance
    Address Services
    Banking
    Business News
    Business Advice
    Company Addresses
    Tax and VAT
About FD
Contact Us
  • Blog Home
  • Back To Main Site
  • Blog Categories
    • Accounting and Finance
    • Address Services
    • Banking
    • Business News
    • Business Advice
    • Company Addresses
    • Tax and VAT
  • About FD
  • Contact Us
Accounting and Finance, Business Advice, Featured

Choosing the Best Accounting Software for your SME

If you are in the need of accounting software for your small to medium enterprise (SME) you have many choices. Long gone are the days when Quickbooks was your only option – today’s cloud based accounting programs are innovative, adaptive and designed to help you keep track of your books in ways that are well suited to your start up business.

The old giants of accounting software are being challenged and overthrown by a new wave of web based programs that will help you to keep track of your profits and losses, your VAT, your cash flow, invoices, employee wages and more.

If you are overwhelmed with all of the options on the market and wondering what you should consider when making your decision, read ahead.

Remember – large corporations often employ a ‘finance manager’ or lead accountant who is one of the most important people in the company. Your accounting software will play this role until the time when you too need a dedicated accountant – don’t treat this decision lightly. Take your time and do your research – What functions do you need your accounting software to be able to handle? What are the daily tasks that you need it to do? These are all things to consider.

What country was it designed for?

While Australian or American accounting software will certainly work for many aspects of your business needs, it will not be able to meet all of your specifically British needs. If you choose to go with a foreign product, ensure that it has a setting for UK businesses.

Does it include VAT options that will suit your business?

If you are already VAT registered or plan to become VAT registered in the future, you will need to assess some of the functions on any accounting software you are researching. Can it accommodate Flat-Rate VAT? Will it automatically produce a VAT return, and can this be submitted to HMRC from within the software program. If your business has any complicated VAT rules to follow, you may need software that implements Reverse Charge calculations automatically – be sure to check this.

Does it offer multiple currencies?

Many software programs offer multiple currencies, but some do not. If you regularly do business in Euros, dollars or other currencies, this could be an important consideration when you make your decision.

Will it automatically link to your personal annual tax return?

Some software options will take all of the input information about your salary, profits and dividend payments and will link this directly to your personal tax return. Programs, such as FreeAgent, even have the capacity to submit your annual return directly through the software, saving you heaps of time and energy.

Can it link to your bank accounts?

Can this software easily link its information to your bank account? While certain programs need you to physically upload your bank statements, others can set up an automatic feed that communicates to your bank account and credit cards. The automatic option is preferable to many small business owners, as this means that they are always up-to-date.

Do you like the interface?

Before you sign on for a contract with any accounting software, you should ask for a free trial (if it is not automatically offered). This is important when assessing if the interface will work for you, and if you find it easy to use. If you find the system intuitive to browse, you will have a better time finding features that you use on a daily basis.

What kind of Reports does it offer?

This is a key measure of usability when it comes to selecting the right software for your business. First, you must determine what it is that you require – do you need comprehensive reports on a daily or monthly basis? Some other common reports to consider include (but are not limited to):

  • A monthly balance sheet that includes details about all of your company’s assets, liabilities and your capital balance over the past year
  • Your monthly Profit & Loss reports
  • Debtors and creditors over 30, 60 and 90 day periods
  • Information about your open ledgers
  • A forecast of your upcoming year

Does it include payroll capabilities?

The ability to keep your payroll information neat and tidy within your accounting software will be a real time saver, and could prevent costly mistakes. Some programs include this option as a default, and others offer it as an add on.

Do you like the invoices it generates?

When trialling out your new accounting software, it is a good idea to generate a test invoice, so that you can see the layout, design, features and the overall ease of creation. This is a document you will be sending to your valued clients, so it is imperative that you like the way it looks.

Do they offer high quality customer service?

In the event that you do need help with your accounting software package, it is important that they offer reliable and affective customer service. If you are often working late at night or on weekends, it pays to check their hours and find out if help will be on hand on holidays.

Choosing from options on the market

Now that you have thought about what features are important to you and your business, here are some well rated accounting software programs for SMEs that you should have a look at as you begin your search.

  • Xero – Xero is the UK’s leading cloud based accounting software, and boasts fantastic reviews from its users.
  • Wave – Touting itself as a free alternative to QuickBooks, Wave is a simple accounting product that will be attractive to many SMEs based on its no cost model.
  • FreeAgent – Specifically for small start ups and freelancers, FreeAgent has a UK focus and a host of features that self employed individuals will find valuable.
  • Kashflow – Easy to use and ultra simplified, Kashflow is a good option for you if this is your first attempt at doing your own books.
June 30, 2016by Anna Lemos
FacebookTwitterPinterestGoogle +Stumbleupon

Recent Posts

  • Service Update – COVID-19
  • Paying Dividends to Shareholders
  • ProCircle – The Matching Network for Accounting Professionals
  • The PSC Register – Offshore Companies and Indirect Interest
  • What is a Community Interest Company, and how is it Different from a Charity?
Start Your Company Formation

Categories

  • Accounting and Finance
  • Address Services
  • Banking
  • Business Advice
  • Business News
  • Company Addresses
  • Company Documents and Record Keeping
  • Company Secretarial Services
  • Domains and Websites
  • Featured
  • General Interest
  • HR Employment
  • Our Services
  • Running Your Business
  • Sales & Marketing
  • Shares and Shareholders
  • Start-Ups
  • Tax and VAT

Popular Posts

Reducing your Carbon Footprint

Reducing your Carbon Footprint

Top 10 Best Places to Sell your Products Offline

Top 10 Best Places to Sell your Products

Service Update – COVID-19

Service Update – COVID-19

Economic confidence – where next?

Is the water cooler an economic baromete

Archives

  • March 2020
  • November 2018
  • October 2018
  • July 2018
  • May 2018
  • February 2018
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • September 2015
  • June 2015
  • May 2015
  • March 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • May 2014
  • April 2014
  • March 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • February 2013
  • January 2013
  • October 2012
  • September 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • May 2010
  • August 2009
  • July 2009
  • May 2009

“Formations Direct was created in 1994 to provide a reasonably priced Company Formation Service to the accountancy and legal profession that is backed up by high quality advice and technical support. From humble beginnings the company is proud to be servicing the needs of thousands of firms throughout the UK and beyond. ”

© 2016 copyright Formations Direct Limited // All rights reserved
Formations Direct