Choosing new accounting software for your business is a critical decision. The sheer number or software products available can be overwhelming and you might not even know where to start. The good news is there have been plenty of companies who have been where you are now and can help you get through the process. From reading Sonary accounting software reviews to taking any product you’re considering for a test drive, these companies’ advice is invaluable, but so are their mistakes. Here are the most common mistakes to avoid when selecting new accounting software.
Hiring a Consultant Who Is Not Independent
Since implementing an accounting system can be challenging, it’s recommended that you hire a consultant who specializes in getting companies up and running on their new software. Unfortunately, it’s very difficult to find a consultant who doesn’t represent one software company or another. When you hire a consultant who is not independent, you’ve essentially already decided which software you’re going to use.
Even if you go through a selection process, a non-independent consultant is going to recommend the software they’re affiliated with, not only because they know that software better than any other, but also because they probably get paid to do so. It’s nearly impossible to find a consultant who has no biases toward accounting software products, so it’s best to do as much of the search as you can on your own. Once you choose the software you’re going to use, then hire a consultant who specializes in implementing that software.
Not Buying an Industry-Specific Accounting Software Product
There are hundreds of generic accounting software products available and some might even work for your industry. But, in many cases, an industry-specific accounting software product will help you fine-tune your accounting process for your exact needs. Usually, industry-specific software has eliminated accounting pain points in a particular industry that generic software still has.
However, it’s important to note that some industry-specific accounting software will work just as well for your industry as a more expensive industry-specific product. The only way to know for sure if a generic product will suffice is to give it a test drive. The same is true for industry-specific software. Don’t assume that just because it was designed for your industry that it’s the only product that you should consider.
Overbuying or Underbuying
When a product’s salesperson gives you a demo, they will highlight all the bells and whistles that will look great in their presentation. But, will you actually use all those features? If the answer is no, don’t let those awesome capabilities sway you to buy more than you need in an accounting product.
On the other hand, don’t buy something that’s so basic that you’ll have to upgrade again in a year or two. Find a product that meets your needs now and will allow you to scale as well. This is a tricky balance, but you should be able to find the sweet spot by trialing the software before you buy.
Conclusion
Above all, take your time choosing your new accounting software. Don’t let a salesperson rush you into making a decision you’ll regret. Try each product that makes your finalist list for at least a couple of months to determine if it will work for you or if you need to move onto the next candidate.
Aidan has been writing about personal finance for over 6 years. Prior to this, he worked as a Corporate Finance Analyst where he specialized in Due Diligence, Company Valuations and more. He is a CFA charterholder.
