What modules do you need when buying an accounting software package?

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With so many accounting software products to choose from the question of business requirements is becoming ever more important. At Compare Software for Business we make a big thing about ensuring that small businesses take some time to think about what they actually require their accounting software package to do before they buy. In doing this thinking the owners of small businesses will get an accounting software product that both matches their business requirements and their cost budget. Far too often small businesses are sold into the mind set of buying a big accounting software name or a glitzy feature rich product that when bought remains underutilised and wasted.

This article is designed to describe the core and non-core modules that make up an accounting software solution. This will help you start to think about how accounting software products are made and which modules you require and which you don’t.

Core Accounting Software Modules

Accounts Receivable – in essence this tracks money that is payable to you and helps you process the receipt of payment. This type of module is essential in any business taking money. As cash flow is the life blood of any small business collecting owed money is the most essential part of business. Hence this accounting modules importance!

Accounts Payable – this is the opposite to accounts receivable. It is an accounting module that allows the user to track transactions to suppliers for goods and services purchased. In order to manage finances well it is critical that outgoings are checked and well managed.

General Ledger – This is the part of the accounting software that creates the company books. It effectively takes all of the financial activity of the business and summarises into a simple to understand set of accounts. This is very valuable for quick and simple end year financial reporting.

Inventory System – Gives general information of the quantity of stocks within the business and where they should be located. I would say this is only core for a retail business or businesses in based on selling physical stock. (If you are a services business or an electronic trader this module is not required.)

Non-Core Accounting Software Modules

Electronic Banking - this gives you the ability to link you accounting software solution to your business bank account. This allows you to have up to the minute accurate financial information in your accounting software but also allows you to make financial changes in one place

Fixed Assets – This acts as a register for you to store all of your fixed assets and equipment. This module simply allows you to keep on top of what assets you have within your business and what equipment is used.

Job Costing – This is very useful for project based businesses. It allows you to store all of the expenses, income and profitability of all jobs taken on by the business. It can be very difficult when a business is taking on several multiple jobs at any one time to separate the profitability of each job. But it is very important to do so in order to ensure that the business continues to take on profitable business and limit non profitable business.

Time Billing – Able to track the time spent and expenses occurred on each client. Very useful for service related businesses that need to keep a tight grip on time spent per client.

Payroll – This accounting module allows a business to be able to successfully manage the payment management to staff within the business. Everything from wages, bonuses, holidays, time in lieu is able to be dealt with quickly and effectively in one system. This is obviously very useful for businesses with a large scale employee base.

It goes without saying that the more of these modules an accounting software system has the more expensive it will be. It is therefore very important to ensure that you only purchase an accounting software solution that fits your business. There is no point paying for payroll within your accounting software solution if you have no staff or inventory management if you are a service trader. Once you have given thought to the requirements of your business visit Compare Software for Business to complete a search against these business requirements to find the perfect accounting software solution for your business.

More information can be found online at http://www.comparesoftwareforbusiness.co.uk

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